After finding an apartment that fits your needs, you decide to sublet one of the rooms for some extra cash. However, your landlord finds out about the extra person in the house and insists your new roommate has to pay more to cover the additional utilities. Is that legal? Unlike questions about renovations and modifications, shared housing often comes with complexities, and it’s difficult to give a straightforward yes or no answer. Continue reading this guide below, and understand if that would be okay in your particular circumstance requires knowing the limits of landlords’ authority, including how roommate agreements affect rent increases.
Landlord’s Authority to Set Total Amount of Rent
Let’s examine the scenario we highlighted above again, and try to figure out if landlords can decide how much a roommate pays rent. The short answer is no. While landlords often have full control over the total rent amount for a rental unit, they have little sway over how occupants can split the rent. As a result, the limits of their authority only extend to setting the rent, often based on market conditions, property size, and location.
However, through specific lease agreements, they can control whether the primary tenant is allowed to sublet, and extra charges the occupants may have to pay to cover the extra utilities. As a result, it’s common for renters to push these added costs to the roommate they’re bringing in or subletting to. That’s why it’s essential to regularly review how to split rent based on income and if changes are needed.
Importance of a Roommate Agreement
- Clarify Financial Expectations
Ensure everyone gets on the same page by clarifying financial expectations with a roommate agreement. If you want to keep disputes at bay and avoid being short on your rent because one of your roommates decided at the last minute that they’re unhappy with the rent split, get your agreement in writing. A written document serves as proof of how all parties agree to share rent, utilities, and other expenses. You can also discuss with an experienced property management in Texas about the possible pros and cons of splitting rent.
- Set Clear Living Arrangements
Besides clarifying everybody’s financial contribution, a roommate agreement also establishes house rules on cleaning, guests, and shared spaces. Beyond paying the rent, tenants have other responsibilities to their rental, including keeping it clean, safe, and preserving the property value. Thus, a roommate agreement reduces the risk of dispute and creates a more harmonious living environment by outlining what each occupant is responsible for in the apartment.
How Will a Lease Agreement Define Rent Increases and Other Concerns?
Rent Increase
Opt for a fixed-term lease if you want a bit more stability in your rental payment. Most long-term rental arrangements, like six months to a year, are set for the duration of the lease. In other words, landlords can’t increase the rent during the term until it’s time for a renewal. As a result, some leases include a provision for rent increases upon renewal based on a fixed percentage or market conditions. In comparison, month-to-month leases give landlords more flexibility to increase rent, provided they give tenants a sufficient notice period.
Failure to Pay Rent
Another concern lease agreements can clarify is what happens when a tenant defaults on the rent. If you lose your job or have emergency medical bills, it can be difficult to come up with the rent, and your landlord could have grounds to evict you. However, a lease agreement that specifies a grace period could give you some room to come up with the rent and avoid maring your rental and credit history. On the other hand, if you’re a landlord adding late payment fees can also help you compensate for any inconvenience of delayed rental payments.
Lease Violations
Define what constitutes a lease violation in your lease agreement. Aside from the late rental payments, tenants can also err by subletting the property without approval, causing property damage, or making excessive noise. As a result, these violations can cause problems for the landlord with the HOA and even require money to fix. However, if both parties sign an agreement with a penalty for these offenses, landlords can legally enforce them, or back up their case in small claims court.
Conclusion
After considering market conditions, location, and property size, landlords can set the total rental price, but don’t have much say over how occupants split the rent. However, it’s still advisable for tenants to sign a roommate agreement so everyone is clear on their financial and maintenance responsibilities. Landlords and tenants also need a lease agreement that clarifies how often and by what percent there can be a rental increase, what happens if a renter defaults on payment, and the penalties for a lease violation.
