How Do I Deal With an Unauthorized Occupant?

What Is an Unauthorized Occupant?

An unauthorized occupant is someone who is living in one of your rental properties without your permission. This is different from a squatter who may have broken into a vacant property and simply stayed there until they were forced out, arrested, or otherwise made to leave. Unauthorized occupants are actively living in the home, receiving mail there, and have been invited in or allowed to stay by someone who is legally living there—such as your tenant.

There are many reasons why an unauthorized occupant would be in a home. One of the most common reasons is that your tenant was having trouble paying the rent and needed someone to help, so they got a roommate. However, if they did not get your approval as a landlord, the roommate is not there legally, which makes the roommate an unauthorized occupant. Another reason this situation might occur in one of your rental properties is if the tenant is trying to help out a friend or relative, or if they start a new relationship, and invite that person to move in.

Unauthorized occupants can come into your life in all sorts of ways, but the biggest issue is that they are not supposed to be living in your rental property. They have not been subjected to screening, a credit check, or a background check. They have not paid a deposit or done anything else to validate their relationship with you as their landlord. In short, they are staying in one of your properties without permission, and there are a couple of ways you as a landlord can address the situation.

Why Are They a Problem?

Having unauthorized occupants living in your rental properties can be a serious problem from a legal standpoint. In many states, once these occupants establish residency there, they will have to be evicted if you want to get them out of your property. A lot of the time, you might not have ever rented to them, had they applied to be a tenant. They might have credit or criminal issues, be unable to afford the rent, or otherwise be a bad choice for tenancy in one of your rentals. 

They can also damage your property or end up having problems with the tenants who are legally staying there. If this is the case, you could have a difficult time getting any money for repairs. You might also lose a good tenant who wants to move out at the end of their lease term just to get away from an unauthorized occupant that they or another tenant allowed to live there. You do not want to lose out on a good tenant because of these types of issues, but unauthorized occupants can cause that to happen.

Also consider that they are living there without any additional compensation to you as the landlord. But if you are paying any of the bills for the property, such as water or electricity, your expenses might go up. Having another person in the property typically means the use of more resources. You could see increased power bills, a higher water bill, or other types of cost increases, but you will not be receiving any more rent than you were before the unauthorized occupant moved in. That is a bad deal for any landlord.

How You Can Deal With This Issue

There are a couple of ways to deal with the issue of an unauthorized occupant, and which one you choose will be up to you and the kind of relationship you have with your tenants. Basically, you can either evict the unauthorized person and remove them from the property so they cannot remain living there, or you can check them out, approve them, and add them to the lease so that they are legally allowed to be there. Both can be good options, but you will want to think carefully and decide what works for your situation.

If you decide you want the unauthorized person out of your rental property, asking them to leave is the first step. Let your legal tenants know that the unauthorized person cannot stay there, then make sure the person leaves. If the person will not simply leave, eviction may be a necessary step. Follow your state's guidelines to make sure you do it the right way. Alternatively, if you do not mind them staying at the property, a background and credit check can be completed and they can be added to the lease as a tenant.

How you handle an unauthorized occupant in one of your rental properties is up to you, but remember that you will want to take action. Doing nothing indicates that you do not mind the current situation, and that could potentially set you up for stress, problems, and legal trouble in the future. It is best to avoid all that by addressing issues with unauthorized occupants right away.