When Could a Guest Be Considered a Tenant?

Trying to figure out when exactly a rental guest becomes a tenant can be a bit like determining at exactly what point a stream becomes a river. You may logically know what a tenant looks like compared to a guest. However, it may be harder to figure out the exact moment this transformation occurs.

Unfortunately for landlords, if you don’t keep an eye on the widening trickle of overnight guests, you may soon have a flood of unauthorized tenants that could wash your independent property business clean off the map.

What’s more, if guests stay long enough without action, they may eventually stand to gain Squatters’ Rights to your property, according to the legal form site LawDistrict.

As a landlord, it’s your responsibility to keep your property safe, according to Bochetto and Lentz. This is why most landlords conduct tenant screening through a reputable company like SmartMove®. But, long-term guests open a loophole where someone might have zero vetting, but still stay in your property to some tenant protections, according to Compliance Prime.

Given the potential stress, work, and high expense of evicting a tenant, it may be imperative to set clear boundaries and lease terms that help protect against unauthorized tenants.

This article helps explain when a guest may become a tenant, risks of unauthorized residents, and how to help protect your property business against potentially bad actors.

Guest vs. a Tenant?

According to Incubate property management group, a tenant is someone who:

• Is on the lease
• Pays rent
• Is protected under tenant law
• Has moved in personal belongings
• Is obligated to follow your lease terms

On the other hand, a guest is someone who visits your tenant on your property. Sometimes these visits might just last a few hours during the day. Other times, guests might stay overnight for single or multiple nights.

However, though this distinction seems straightforward, the guest-to-tenant pipeline can soon become a slippery slope. For example, what if someone’s romantic partner goes from spending one night a week on your property to five nights a week? Soon, you may have one more tenant than you expected.

But––is someone suddenly staying over really a bad thing? It may be. For several reasons.

Potential Risks of Unauthorized Tenants

So, why is it such a big deal if guests overstay their welcome in your property? It could mean potential disaster for your rental business.

Here are some of the risks of unauthorized occupants, according to Bahia Property Management:

• Violating the lease: Unauthorized occupants could be in violation of your lease terms. Plus, these long-term guests have not signed anything. So, what happens for example if a they violate the lease? Could you potentially sue them for something like property damages? How easy might it be to take them to court?
• Increased landlord risk: Unauthorized occupants may increase liability for landlords, particularly in cases where someone is injured or breaks the law on the premises.
• Difficult to remove: In some cases, long-term guests may eventually be protected by tenant rights, which can complicate eviction and other legal proceedings.

In addition to the risks above, you should also consider that, unlike authorized occupants, guests are likely unvetted. Many landlords conduct tenant background screening before signing a lease. This might include things like:…

• Financial screening to confirm all tenants have sufficient finances that meet your requirements and have an good credit score for renting.
• Previous eviction check to help understand your applicant’s rental history.
• Criminal background check to help determine if there are any relevant crimes that potentially match to your applicant.

Without restrictions or terms dictating guest behavior and length of stay, you could easily have a situation where a guest essentially becomes a tenant––that you didn’t agree to house. In fact, some potential residents may even plan to bring in an undisclosed person in once the lease is signed.

Unauthorized Tenant Scams

Unauthorized tenants are one of the most common rental scams orchestrated by rental fraudsters according to site LegalTemplates. In them, rental applicants might omit a planned roommate from the rental application. One reason for this is because they know the unauthorized tenant may not qualify under your application criteria, for things like:

• Spotty rental history
• Criminal background

In the sections below, you can find ideas about how to help prevent unauthorized tenants––whether through intentional scams or just through guests that stay long enough to become de facto tenants.

When Does a Guest Become a Tenant?

You might fully understand the potential dangers of unauthorized residents in your rental property. However, it can be a little trickier to know exactly when a guest becomes a tenant.

According to Genuine Property Management, a guest is someone who only visits sometimes and for a short time––and usually for social reasons. However, someone staying longer or for a different purpose may be inching towards tenant territory.

Guest vs. Tenant

Genuine Property Management provides a list of signs a guest might become a tenant, including:

• They start sleeping over regularly
• They receive mail at the property
• They move in their stuff or furniture
• They pay utility bills or rent
• The primary tenant calls them a “roommate”

Hopefully, this helps provide some background on the spirit of defining a guest vs. tenant. On top of these more practical signs, some states and cities have laws that may dictate when a visitor is no longer considered a guest.

Applicable Laws and Regulations

According to insurance company Steadily, some states have specific laws or ordinances that more specifically dictate when a guest becomes a tenant or the max length of a “guest” stay.

However, the article explains that, only some states have official cut-off points for how long a guest is allowed to stay in a rental.

States might take very different approaches to these laws. A few examples are provided below, as listed by Steadily, as a general reference to show just how these laws can differ:

• Arizona: Guests can stay for up to 29 days
• Florida: Guests become tenants when they stay 14 days within six months, or seven nights in a row
• Georgia: Guests become tenants if they pay some rent and contribute to chores like housework
• Illinois: Guests become tenants when they establish residency without permission from the landlord. For example, they may start receiving mail
• Montana: If landlords don’t specify the permitted length of stay in the tenancy agreement, guests become tenants after seven consecutive days

As you can see, local and state regulations can be very different depending on where you are.

Before following any of the information, please consult your legal counsel for guidance based on federal, state and/or local laws, and to assist with any questions to determine how this information may be conducted or impact you.

2: Keep an Eye on Your Rentals

Keeping tabs on your rental property might be an important part of a landlord’s job. You can check for long-term guests during regular rental inspections and when completing maintenance requests.

Check if there are signs of unauthorized tenants, such as:

• Unknown vehicles in parking areas for extended periods
• The same non-tenants hanging around all the time and staying overnight
• Rent payments coming from new, unexpected accounts or split with a new person

Do note that, according to Driscoll & Driscoll,, residents do have the right to quiet enjoyment. This means you can’t lurk around or cause disturbance to the tenants. You must also abide by the terms of your lease for drop-ins or coming on the property.

3: Have a Conversation––and Take Action, If Needed

You may be wondering what to do if your tenant has unauthorized occupants or guests who have overstayed their welcome.

First, Oak Trust Properties recommends having an open conversation with tenants, as it may help prevent future legal action. After all, it is possible that an overstaying guest doesn’t know it’s a problem and will cooperate to fix it.

The article goes on to say that if the guest continues to stay despite your request they leave, your tenant may be violating the lease terms. At this point, Oak Trust Properties highlights a few choices, including:

1. Ask them to pay rent and add them to the lease
2. Start the formal process of removing the tenant

3: Screen Any New Tenants

If you and your tenant do decide to add their guest to the lease, don’t just get a few signatures and call it a day. You may want to screen your potential new tenants with a well-established background check service like SmartMove.

Try looking for things like:

• Financial stability: Do they have sufficient finances that meet your requirements? What does their credit report look like?
• Criminal background: do they have any past relevant records that you may want to consider? Do a criminal record check to help find out.
• Rental history: Have they paid their rent on time in the past? Trashed other places? Conduct landlord reference checks and previous eviction screening to learn more.

Of course, each circumstance may be different. For example, a tenant moving their retired, elderly parents into the unit to help care for them may require a different screening approach than someone moving in their new boyfriend. You may want to take personal circumstances into account.