An agreement by two or more people to rent and occupy a property together is called co-tenants. Each person becomes the co-tenant of the other.
This article examines what happens when a third co-tenant moves in.
Original Co-Tenants Liable For Monthly Rent Payment
Most landlords require separate lease agreements between the Landlord and each of the tenants. This way, each lease is enforceable against each tenant.
Each co-tenant is jointly liable for the full payment of the rent, and should one co-tenant default on the rent, the other co-tenant remains liable for the total monthly rent amount.
Sometimes, the Landlord will accept both co-tenants on a single lease, but the Landlord will insist that both tenants be jointly liable for the rental payment for the entire term of the lease.
When Co-Tenants Want To Add A Third Roommate
After the co-tenants take occupancy of the property, they may decide that they would like to have another roommate to share in rent and utility expenses.
Should this new person move in with the original co-tenants, the new roommate technically becomes a subtenant to both original co-tenants.
Subtenant Defaults On The Rent
The trouble usually begins when one of the three roommates cant pay the rent. Technically, the two original co-tenants are legally responsible for the entire rent amount.
If the new roommate-subtenant defaults on paying rent, then the two original co-tenants will need to pay the entire amount of rent to the Landlord and then attempt to collect outstanding rent from their subtenant.
The Nonpayment Of The Subtenant Is Not The Landlord’s Problem
The Landlord’s relationship to the subtenant is not unlike a third-party beneficiary to the roommate arrangement – nothing more. The subtenant is not obligated to the Landlord but rather to the two original co-tenants to pay his share of the rent.
Legally, the Landlord will only look to the original two co-tenants for payment of the rent. The two original co-tenants should have made a separate lease agreement between the two co-tenants and the subtenant.
The sublease would have made the subtenant legally responsible to the co-tenants for paying his one-third share of the rent and utilities for the lease term. This way, all three roommates would be jointly liable for payment of the rent and utilities.
