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Just One Lease Agreement for a tenant with Multiple units? Advisable?

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  • Just One Lease Agreement for a tenant with Multiple units? Advisable?

    If you have a tenant renting multiple units with you, at the time of the rental is it advisable to just hand him over ONE lease agreement that lists all the units he's rented with you? Is this advisable? If Yes, would that differ based on each state associations law?

    I'd highly appreciate any insights from anyone on the above... How do most handle this?
    Alen
    Client Relations
    6Storage
    p: +1 (844) 334 4666 m: 954.239.7180
    w: www.6storage.com e: antony@6storage.com

  • #2
    I do a separate lease for every unit, whether they rent another later, or rent them all at the same time. That way if I have an issue with one, a lien notice for example, I pull the lease for that unit to keep in my lien notice file. There's no way the tenant can later say "I never rented that unit". My owner's other facility just hand-writes a note at the top that the tenant is also renting unit x. I don't know how well that would hold up in court, but it works well for them. I'd never do it at my facility.
    Too many freaks, not enough circuses.

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    • #3
      Originally posted by DairyGirl View Post
      I do a separate lease for every unit, whether they rent another later, or rent them all at the same time. That way if I have an issue with one, a lien notice for example, I pull the lease for that unit to keep in my lien notice file. There's no way the tenant can later say "I never rented that unit". My owner's other facility just hand-writes a note at the top that the tenant is also renting unit x. I don't know how well that would hold up in court, but it works well for them. I'd never do it at my facility.
      Thanks, much for sharing your insights with us, I was under the same notion too; Logically it might sound to be a simple way to hand out a single lease agreement, But I'd myself be concerned on the legal issues it might bring over later. Hope more responses could help me in understanding a familiar pattern followed by all.
      Alen
      Client Relations
      6Storage
      p: +1 (844) 334 4666 m: 954.239.7180
      w: www.6storage.com e: antony@6storage.com

      Comment


      • #4
        When I used to do paper leases I would do a single lease for multiple units, because of the time savings. In the age of digital leases, it is a no brainer to do an individual rental agreement for each unit.

        I have run into issues where a certain unit was for a certain family member in a estate to clear out, and the estate does not want to pay after a certain period. There is almost always a straggler (They are some of my best tenants by the way lol)

        Or you have times where one party in a domestic split up places each parties items in a different unit.

        Those are just a couple ways it can go wrong.

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        • #5
          Still have paper leases. I allow only one name on the lease. If they have multiple units at the initial sign up it is all written down and initialed and signed by the single tenant. If they add units after that I just write a description on the lease and date it and the single tenant signs it. It is all within the 4 corners of the legal lease. I have checked with the facility lawyer and it is all legal. If you add units without dating that time and getting a signature, then you could have a problem. I just happened to think of this. You can also take a pic of the signature being put on that lease. May be overkill but who knows.
          "Never let the inmates run the asylum!"

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          • #6
            For us every unit gets a lease. I did not want to run into an issue at lien sale. What if they pay only one and both are on same lease? seems like a legal headache to me.
            Joe Krezdorn
            DAK Self Storage
            Leesport, PA 19533
            www.dakselfstorage.com

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            • #7
              Each unit is a unique legal agreement, and as such gets its own contract completed. That way, no matter how much they move in and out of units, there is always a legal contract for each one. It's all neat and tidy this way.
              MamaDuke

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              • #8
                1 lease per unit, doesn't matter how many a tenant has. Sometimes we rent say 2 10x15 units as a 10x30 if we are out of 10x30 units. Each 10x15 gets a lease signed for it, and the rental amount at the 10x15 rate. We then discount if both units are occupied. That way if a tenant vacated one of the 10x15's they can't try to get one for cheap.

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                • #9
                  Originally posted by letsgosonics View Post
                  1 lease per unit, doesn't matter how many a tenant has. Sometimes we rent say 2 10x15 units as a 10x30 if we are out of 10x30 units. Each 10x15 gets a lease signed for it, and the rental amount at the 10x15 rate. We then discount if both units are occupied. That way if a tenant vacated one of the 10x15's they can't try to get one for cheap.
                  They can't get away with moving out of one unit and continue to get a discount on the kept second unit because that is also written and signed for on the single lease. I make them aware that the single unit price moves back to street rate and they initial and sign that as well. What managers and owners do to feel comfortable about it is up to them but at least here in Oregon, my way is legal. It may not be legal in another state. I don't know. They have to be an adult, 18 years old, to sign a lease and I make them be adults and honor what they agree to because I certainly will.
                  "Never let the inmates run the asylum!"

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                  • #10
                    We have just one rental agreement listing the multiple units and tying them together as one in the case of delinquency. If they add a unit at a later date, then we have them sign a new rental agreement which includes all of their units. One monthly payment. One delinquency.

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                    • #11
                      Originally posted by grcitylimits View Post
                      We have just one rental agreement listing the multiple units and tying them together as one in the case of delinquency. If they add a unit at a later date, then we have them sign a new rental agreement which includes all of their units. One monthly payment. One delinquency.
                      This statement sums it up best. "One monthly payment. One delinquency." If a tenant has multiple units and is late on one unit of the group, they are not allowed on the facility to the other units because they would be trespassing according to the policies for the one late unit. Same here. Late on one, locked out for all units. Cannot come on the facility to access any of the units. Get current and move out of some of the extra units, no problem. Letting a tenant on the facility for current units when they owe for other units, when locked out of those units, is letting the tenant dictate policy, IMO. That in and of itself opens up a whole other can of worms. One lease controls ALL units. At least it does on my facility. When I have a locked out unit for a tenant with multiple units, there are locks on all the units and all gate codes are locked out. There is a whole other thread about all this.
                      "Never let the inmates run the asylum!"

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