Interested in moving into a new apartment but you can’t afford rent? You’re not alone. In fact, there are eight major cities where at least half of all millennials can’t afford to rent a 1-bedroom apartment.
A joint tenancy is one of the best ways to live in an apartment that you’d otherwise have to ignore. How joint rental functions would depend on the lease agreement the landlord creates. It would also require the roommates to decide what their share of amenities and rent should be.
But what is a co-tenant in this joint rental, and what are their legal rights?
What Is a Co-Tenant?
Strictly speaking, co-tenants are multiple individuals renting a property together.
It is different than a sub-tenant in that co-tenants often have an agreement with a landlord. In the case of subletting, the main tenant continues to have complete responsibility over their lease even if they no longer live there. Meanwhile, the subletter has no relationship with the landlord.
Many apartment buildings in major cities utilize co-tenants to fill vacancies and provide affordable housing.
Why You May Want to Do a Joint Rental
There are a few different reasons to split property ownership, for both tenants and landlords.
Tenants may seek joint tenancy to split rent and utilities. They can also divide up cleaning duties, spend time with one another, or simply cut costs so they can live in a more expensive part of town.
As a landlord, allowing roommates in a single property can help you fill vacancies faster. In addition, the rule of Joint and Several Liability makes it so you can legally collect the entire rent from a single tenant if their roommate fails to pay up.
While it may be difficult to keep track of all your different tenants, most landlords will choose a single tenant in each property as their main intermediary.
Drawbacks of a Joint Tenancy for Landlords
There are some drawbacks to a shared rental, though.
For one, you have more tenants to deal with on a daily basis. One rowdy person is difficult enough, but you could be dealing with upwards of four tenants in a single property.
Another problem you may run into is conflict among roommates. A co-tenant may fail to pay their share of the rent or have issues with the other person’s behavior. In that case, the landlord may have to terminate the lease for all co-tenants, even if only one person has violated it.
An individual can sever a joint tenancy in certain cases, but that can cause problems in and of itself.
Avoiding Complications With Co-Tenancy
So, what is a co-tenant? It’s a situation that can cause a landlord problems if multiple tenants ever come into a disagreement. However, it’s also a good way to rent out a property that you’ve been sitting on for far too long.
Just remember to take the co-tenancy into account when creating the lease agreement to protect yourself. And have a lawyer you can trust to handle disputes.
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