Multiple-Tenant Lease Agreement Explained

Standardized Legal Documents Multiple-Tenant Lease Agreement Explained

Multiple-Tenant Lease Agreement—Everything You Should Know

Leasing a property requires the owner to create an airtight legal document that will protect their interests in case any issues with the tenant occur. A multiple-tenant lease agreement is even more important, and the landlord needs to know how to properly state the rules and requirements.

DoNotPay can help you sort out the priorities and adjust the document to your needs!

What Is a Multiple-Tenant Lease Agreement? 

A multiple-tenant lease agreement is exactly what you can assume it is based on its name—a lease agreement created for several tenants living under one roof. This kind of lease agreement is becoming more and more popular due to high rent rates in many cities in the U.S. People opt for finding flatmates they don’t know because it means they can lower their expenses.

For landlords, this living arrangement can often be a cause of problems because of the potential disagreements between the tenants. To prevent any serious issues, creating a rock-solid multiple-tenant lease agreement is necessary.

Pros and Cons of Multiple-Tenant Lease Agreements

In case you are a landlord still unsure whether you should go forward with creating a multiple-tenant agreement, take a look at the advantages and disadvantages of renting to multiple tenants:

Renting to Multiple Tenants
You can:

  • Generate higher returns by renting to multiple individuals rather than a single tenant
  • Keep the property fully leased year after year with more people easily
  • Count on certain rent payment even if one of the tenants leaves the property unexpectedly
You will have to:

  • Deal with multiple tenants, which is harder than handling just one person
  • Expect potential disputes among the tenants who do not know each other
  • Count on a higher risk of property damage if there is a larger number of young people living under one roof (frequent need for repairs and emergency calls)

If you decide there are more benefits than downsides to this agreement, you should know about other elements you must include in the contract.

What To Consider Before Signing a Multiple-Tenant Lease Agreement

When dealing with multiple individuals who have no relationship at all, it is necessary to establish clear house rules to help them live in harmony. The tenants should agree on the following before signing the lease agreement and run the decisions by the landlord:

  1. Is borrowing personal items allowed?
  2. Will the food be shared? (no one wants a Ross Geller sandwich situation)
  3. Is having guests stay over allowed, and how many people can be in the property at once?
  4. How will chores and cleaning responsibilities work?
  5. What are the rules about noise issues?
  6. What happens when a person decides to leave the rental unit?

What Every Multiple-Tenant Agreement Should Contain

When creating a multiple-tenant lease agreement, make sure to add the following sections in the document:

  • Contact information of all the tenants and the landlord
  • The address of the property in question
  • Details of the property—size, furniture, number of rooms, etc.
  • Duration of the agreement
  • Rent details—amounts and due dates
  • Other expenses—utilities, repairs, and general maintenance and upkeep
  • Deposit amount
  • Termination terms—explanation of the process when a tenant wishes to exit the agreement
  • House rules
  • Signatures of all the parties involved in the agreement

If you wish someone else could deal with this bureaucratic task on your behalf, you are in luck! DoNotPay can handle making legal documents in a flash.

DoNotPay Can Help You Create a Lease Agreement in a Heartbeat

You don’t have to trouble yourself with creating a legal document if legal matters are not your strong suit. There is no need to hire lawyers who will charge sky-high fees for their services—DoNotPay can handle everything! To make a lease agreement that will protect your interests, you should follow these steps:

  1. Sign up for DoNotPay in a web browser of your choice
  2. Type in Lease Agreement as the name of the document you want to make
  3. Give us some info about the details specific to your case

Using DoNotPay to create a legal document will ensure you have an agreement tailored to your needs. This is not the case with online contract templates that are too generic.

DoNotPay Knows Everything About Legal Documents

You can use DoNotPay to make a legal document you need the fastest way possible. In addition to this, our Learning Center is full of the information you’ll need when dealing with other kinds of contracts and agreements. Take a look at the table below for more information:

Documents You Can Create With DoNotPayDocuments You Can Learn About in the Learning Center

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