Adding or Removing a Tenant/Roommate Workflow

Step 1: Tenant Inquiry

  • Trigger: A tenant contacts us requesting to add or remove a tenant/roommate from the lease.
  • Action:
    • Respond to the inquiry, clearly stating that this is a consideration and not guaranteed.
    • Outline the process and any associated fees.
    • Reopen the property listing so the applicant can apply directly to the specific property.
    • Applicant Submits Property-Specific Application
    • Ensure the applicant submits an application under the property listing and not a general application.

Step 2: Collect Administrative Fee

  • Fee Amount: $250 (non-refundable)
  • Action: Collect Application Fees
    • Inform the tenant that the administrative fee must be paid through their tenant portal to begin consideration of the request.
    • Confirm the required application fee is paid(receipt),
    • If applicable, collect the $250 lease amendment fee for additional tenants.

Step 3: Application Process

  • If Adding a Tenant:
    • The LC will need to reopen the specific property application in AppFolio so that the applicants can apply directly to that property.
    • Both the current tenant and the incoming tenant must submit an application under the property listing and pay the required $75 application fee.
    • Ensure that the applications are submitted to the specific property and not through the General Application on the Available Properties page.
    • Once submitted, proceed with the standard screening and approval process.
    • Review both applicants using the roommate criteria.
    • Share the approval requirements (Link to Approval Criteria).
    • Inform the tenant that the new applicant must meet all approval criteria for the request to be considered.  https://www.treatyoakproperties.com/frequently-asked-tenant-questions
    • First, look for "automatic denials" and required info. See notes https://treaty-oak-property-management-llc.helpscoutdocs.com/article/314-screening-process
    • If no automatic denial situations arise, then proceed to finalize all other screening items. Pets, income, credit, etc. Petscreening.com must be completed before we proceed with approving applicants. https://treaty-oak-property-management-llc.helpscoutdocs.com/article/314-screening-process
    • If the PetScreening assistance animal verification is pending and this is the final item needed to complete the application, send the application to the PM for review and note that the verification is still pending. https://treaty-oak-property-management-llc.helpscoutdocs.com/article/365-application-approval-request-template

    • If the application is approved, proceed with the lease preparation and include the following clause in the Pet Addendum:

      “Treaty Oak reserves the right to charge the $500 pet deposit if the Support/Assistance Animal paperwork is denied or found to be fraudulent.”

    • Submit the completed application package for approval, following the same process used for vacant property applications.

    • If the applicant is denied, generate an Adverse Action letter and send it to the applicant. Please review the notes before proceeding.

      After denial, move the applicant's information to the “Denied” tab on the Application Processor sheet.https://treaty-oak-property-management-llc.helpscoutdocs.com/article/366-denying-applications?preview=68f14f924659441b3b9f362f

    • If the applicant is approved, prepare a Lease Amendment to add the additional tenant and submit it to the Property Manager (PM) for approval.
    • Secondary or “non-best-qualified” application procedures do not apply in this situation, as this process is for adding an additional tenant to an existing lease, and there will be no additional applications to review or deny.
    • If, at any point, the applicant rescinds the application, cancel the application in AppFolio.
    • Do not change the MLS listing status, as the property is currently tenant-occupied under an active lease. If the additional applicant is denied, the MLS status remains unchanged.

  • If Removing a tenant

Reopen the Property Application in AppFolio

The LC must reopen the specific property application in AppFolio so that the remaining tenant(s) can apply directly to the property. Applications should not be submitted through the General Application.

    • Application Requirement: All remaining tenants and any incoming tenant (if applicable) must submit an application under the specific property listing.
    • Application Fee: Each applicant must complete the application and pay the $75 application fee per person.
    • Provide the Application Link: Send the property-specific application link to the remaining tenant(s) once the property has been reopened in AppFolio.
    • Share Approval Criteria: Provide the approval requirements link so the tenant understands the screening standards.

    • Explain Qualification Requirement: Inform the tenant that the request to remove a tenant will only be approved if the remaining tenant(s) qualify for the property on their own, according to the approval criteria.

      Process Application Screening

      Once submitted, process the application following the standard screening procedures:

    • Credit check
    • Criminal background check
    • Income verification
    • Rental history verification
    • Submit for Approval: Submit the completed application package for approval, following the same process used for vacant property applications.
    • If Approved: Prepare a Lease Amendment to remove the outgoing tenant and update the lease. Submit the amendment to the Property Manager (PM) for approval before sending it for signatures.
    • If Denied: Generate an Adverse Action letter and send it to the applicant. Update the Application Processor sheet and move the applicant's information to the Denied tab.

Action:

    • Review the application(s) against the standard approval criteria.
    • Submit the completed application package to the Property Manager (PM) for approval.
    • Once a determination is made, notify the tenants of the decision.

If Approved:

    • Once approved, prepare a Lease Amendment to add the applicant as an additional tenant.
    • Ensure the $250 lease amendment fee is charged and reflected on the tenant ledger.
    • Send the amendment via DocuSign or AppFolio for all required parties to sign.

If Not Approved:

    • Inform tenants that the request has been denied.
    • Clearly state that the lease will remain unchanged, and all current tenants must adhere to the original terms.

Step 5: Finalize Documentation (If Approved)

  • Adding a Tenant:
    • Ensure all parties (existing tenants, the new tenant, and property management) sign the updated lease agreement.
    • Provide copies to all involved parties.
  • Removing a Tenant:
    • Ensure all parties (remaining tenant and departing tenant) sign the roommate addendum.
    • Provide copies of the updated lease agreement to all involved parties.
    • Confirm that the original security deposit will remain with the property.

Step 6: Update Records

  • Action:
    • Update tenant information in the property management system.
    • Archive old agreements and save new agreements securely.

Step 7: Follow-Up

  • Confirm with tenants that the process is complete if the request was approved.
  • Remind tenants of any obligations, including rent payments and maintenance responsibilities.

Important Notes:

  • Discretionary Decision: Approval of tenant changes is at the sole discretion of the property management team and is not guaranteed.
  • Timeline: Processing the request may take several business days, depending on responsiveness and application reviews.
  • Fees: All fees are non-refundable, regardless of the decision
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