Blog Post

When Does a Guest Become a Tenant?

Stephen Fox • Jul 21, 2021
guests becoming tenants

Sometimes a tenant's guests can overstay their welcome. While this might not seem like a big deal, it can actually become costly for the property owners. As a landlord, you want to discourage guests who stay too long because they have the benefits of a tenant without the responsibilities.


If you want to know the difference between a guest and a tenant and would like to know how to address the issue of guests overstaying their welcome, keep reading! 


What is a Tenant?

The tenants are the people who signed the leasing agreement with you. Their identities are verified. You have access to all their important information such as their contact numbers. They’re obligated to pay the rent every due date and are held responsible for maintaining the rental unit to keep it damage-free.


What is a Guest?

Guests are people that the tenants know. They can stay for a reasonable time in the rental unit. They’re not obliged to pay the rent or deal with property damages or repairs in the same way a tenant is. They can pose a risk if they start acting like tenants and turn into long-term guests.


Importance of Lease Signing

All occupants living in your unit should be accounted for. Getting a tenant to sign a lease agreement means they’ll be protected under the law. They also become legally accountable for things such as their duty to pay the rent by a certain date each month. 


signing lease agreement

Additionally, they’re tasked to comply with the tenant responsibilities under the lease agreement and landlord-tenant laws. 


Signs a Guest has Turned into a Tenant

There are several ways to gauge whether a guest has become a tenant or not. Check to see if the guest is:

  • Spending every night at the rental unit
  • Directing and receiving mails at the rental unit
  • Transferring their furniture into the unit
  • Reaching out to request maintenance services


These clearly show that the guest is establishing residency in your investment property. To avoid any confusion, your leasing agreement should include the acceptable period for guests to stay. You can outline a 10-day to 2 weeks period as an acceptable arrangement for guests to stay every 6 months. 


Examples of Tenants vs. Guests

Elderly parents are labeled as tenants when they’re dependent on their children and have moved into the premises. However, they’re considered guests if they only visit for a few weeks. 


Significant others or friends are categorized as tenants if they’re spending a maximum number of days and nights at the rental for several weeks and months already. On the other hand, they’re deemed as guests when they only visit during the daytime no matter how frequent.

guests in your rental property

Nannies or hired helpers are treated as tenants when they start living on the rental property. They’re considered as guests only when they’re keeping normal business hours or only spend the night on occasion.


Including the Guest to the Lease

It’s important to have a record of all people living in your rental unit. This is for legal protection so you know the identities of everyone staying on your property. Asking your tenants to add the overstaying guest or new roommate to the lease is essential. 


Even if it’s awkward, it’s in your best interest to open that line of communication. It’s good to determine if the new occupant wants to be welcomed as a rightful tenant. What’s more, discussing the rental cost and expectations of living as a tenant will extend protection to all the parties in your rental. 


Otherwise, you can notify the signed tenants that they’ve committed a violation of the lease. This can mean canceling the agreement, but before it comes to that, it’s better to reach a mutually satisfying agreement on dealing with the new occupant. Either the guest can continue on as a tenant by being included in the lease, or they can move out of the rental space.

provisions to protect against long-term guests

Taking a Proactive Approach

Managing this scenario is far easier when you have an honest talk with your tenant on rules about guests. In fact, to make matters clearer, a provision for guests should be written clearly on the lease to prevent confusion. It will also make the tenant understand the repercussions of breaking the policies stated in the lease.


You can state in your lease that only a tenant’s immediate family and friends are allowed to stay as guests. The lease can also state that beyond the 2 weeks allowed stay every 6 months, guests will be considered a tenant and be added to the rental agreement. The landlord then has an option to raise the rent when the guest is now considered as a tenant under the lease.


Important Reminder When Accepting Rent Payment

Never take any rent money from a person that has not signed a leasing contract with you. You might find that it’s not as easy to remove them from the rental once the payment has been accepted. Ask a lawyer for legal advice to ensure you remain compliant with the laws in your State.


Bottom Line

Being a landlord, you’re in charge of monitoring the tenants in your rental space for safety reasons. It’s your legal duty to know what’s occurring in your rental. If you want help managing your properties and your tenants consider hiring the services of a reliable property management company like Advantage Realty Services!


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