Rentals in 95670>Question Details

Jerry Zheng, Real Estate Pro in Milpitas, CA

How to deal with this sublet situation - to current tenant's dad?

Asked by Jerry Zheng, Milpitas, CA Fri Aug 3, 2012

My tenant renewed his lease for one more year back in April 1st 2012 but now has lost his job and wants to move out. He proposed to let his dad and granddad to continue the lease. I would really prefer this if everything goes fine as I don't have to let it vacant before getting new tenant, this would safe the rent income as well as the repair/clean cost. But here are my questions for help:

1] Should I start new application/process as a new lease or just checking credit and decide?
2] Should I go with a brand new lease or let current tenant signing sublet but I still hold current tenant responsible?
3] My tenant suggest we hold his deposit to carry on, is this okay or I have to make refund his and collect new from his dad to be legal?
4] If his dad's credit score is not good, can I increase the security deposit?
5] What are the tricky points in situation like this?

Thank you very much in advance for your help!

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Answers

2
Seek answers from a Property Manager and your Attorney!
0 votes Thank Flag Link Wed Aug 8, 2012
Of course, you must check with a local real estate attorney.
How is current tenant's credit? Can you keep him on the lease, and add the other family members? Then they would all be accountable..If you start a new application process, you must have all parties cancel the old contract which opens up the possibility that they will try to negotiate a lower rent and that you will end up with nobody. You didn't state how much security deposit you now hold, but there are restrictions on how much you can demand and from whom.
0 votes Thank Flag Link Fri Aug 3, 2012
Dianne: Thanks a lot for your prompt response on this. Although the current tenant doesn't have perfect credit (Score 542), he has been paying rent good, and paid late fee twice for only one day late. The deposit is about 70% of the rent. The current lease is with him and his wife. I will definitely check to see if they are willing to stay on the lease just by adding his dad and grandad on to the lease or not. Otherwise a new lease has to be signed as the current one can not be extended, obviously with new tenant, right? Thanks again!
Flag Fri Aug 3, 2012
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