As a Henderson or Las Vegas property owner or landlord, you know how important it is to find the right tenants. While renting to individuals or families is usually ideal, renting to roommates can also be a good idea when trying to widen your tenant pool. However, there may be some additional things to keep in mind when leasing to roommates. Our Henderson and Las Vegas property management team explains what you need to know.

Potential Benefits of Renting to Roommates

If you are on the fence about allowing roommates to lease your property, you may want to look at the pros and cons before making your decision. Some benefits of renting to roommates include:

1. You may get more qualified applicants.

With such a competitive rental market, it can be difficult to fill rental vacancies as quickly as you might like if you are not casting a wide enough net. Allowing roommates to lease your rental property means you may find more qualified applicants who have a strong rental history, steady income, and good credit. Being dismissive of roommates may leave a lot of strong candidates on the table.

2. Roommates can share financial and household responsibilities.

With multiple occupants in your rental property, there is also the potential advantage of having more people to take on the responsibilities of the property. When roommates sign a lease agreement with a “joint and several” clause, they are all equally responsible for monthly rent payments and must adhere to avoiding violations. As a result, the roommates may divvy up duties to ensure they stay on track.

Additionally, one person’s failure to comply will fall on the other roommates. Each tenant must pick up the slack if one of the roommates is short on rent or causes damage to the property. This means there is more accountability between roommates because of the consequences they can have on each other.

3. Rent is more affordable for roommates.

In many cases, people choose to live with roommates as a way to save money or be able to afford a nicer rental property by sharing the cost of monthly rent. Having more than one liable tenant in your property means your rental income may be more consistent. Furthermore, because the rental rate is divided by the number of roommates, you could even ask for slightly more in rent and still make it competitive.

4. You may get more stable tenants.

Tenants will often stay in your rental property longer when they are happy with their living arrangements. When roommates are close friends, siblings, or couples, it is likely that they will enjoy sharing their space with their loved ones and may want to renew their lease — ultimately saving you the time and expense of having to find a new tenant down the road.

Possible Downsides of Renting to Roommates

Unfortunately, there could also be some downsides to leasing to roommates, such as:

1. More people in the rental property means more wear and tear on the property.

No matter how careful your tenants are, there is always going to be wear and tear that happens simply by living in the space. With roommates, there are more people occupying the rental property, which can result in additional wear on floors, carpets, appliances, and more. In the end, this could lead to more costly and extensive repairs for you.

2. Conflicts may arise that affect you or your other tenants.

When renting to roommates, there is also a risk of internal conflicts that can have lasting effects. While the people moving into your rental property may know each other well, living together introduces new situations that may not have come up before. For example, there could be differences in:

• Schedules
• Cleanliness
• Personal habits
• Noise levels
• Expectations

In some cases, these conflicts could lead to loud disruptions that affect other tenants or neighbors. They may even try to break their lease early if the conflicts become extreme.

RELATED: 5 Reasons Why Tenants Can Break Their Lease Penalty-Free

3. Renting to roommates requires more steps.

If you are open to allowing roommates to lease your rental property, you will need to take extra steps to ensure they are qualified tenants. This means you will need to screen each applicant individually, including:

• Credit checks
• Background checks
• Income verification
• Checking rental history
• Connecting with references

This can be a long process that takes your time, attention, and resources away from other important duties.

4. You may need to make adjustments to your lease agreement.

It is also vital to take a look at your existing lease agreement to see if you need to make changes to accommodate roommates. Because the lease agreement is a legally binding document, having the right language that fully details each person’s responsibility is crucial. Making sure all parties understand the terms of the contract is essential to a successful roommate lease.

Recommending a Roommate Agreement

Although a roommate agreement is not something landlords can enforce, it is a helpful tool for roommates who choose to live together in a rental property. This helps all tenants set clear expectations and house rules and establishes accountability while living under the same roof. Some things you may find in a roommate agreement include:

• How much each person must contribute towards rent.
• How household duties will be split up.
• If and when guests are allowed.
• Pet policies.
• Who will occupy what rooms.
• Defining common areas.

Recommending a roommate agreement or even having one on hand for your tenants can help with a smoother transition for everybody.

Working With a Professional Property Manager in Las Vegas

Leasing to roommates can definitely be a good decision for your rental property if you approach it carefully and take added precautions to avoid common issues. A trusted property manager can help you make the most of leasing to roommates by handling the screening process, lease agreement modifications, rent collection, tenant communication, and more.

At Black & Cherry, our goal is to help Las Vegas and Henderson landlords streamline their business with cutting-edge technology, intuitive digital marketing, and experienced professionals who understand today’s rental market. Contact our property management team to learn more about our comprehensive Henderson and Las Vegas property management services and how we can help you maximize your rental income.