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When Does a Guest Become a Tenant in a Rental Home?

When Does A Guest Become A Tenant?

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One of the most important things you need to understand is the difference between a guest and a tenant under Oklahoma landlord-tenant laws. Misidentifying a guest as a tenant or vice versa can lead to complications, including legal disputes and financial losses under landlord-tenant law.

According to a survey by the American Apartment Owners Association, almost 30% of landlords have encountered issues with guests overstaying their welcome and claiming tenant rights reserved for lawful occupants. In this article, I will explore the factors that determine when a guest becomes a tenant in Oklahoma, with actionable information to manage your property effectively.

What is the Legal Definition of a Guest vs. a Tenant?

According to the U.S. Department of Housing and Urban Development (HUD), a tenant is an individual who occupies a rental unit with the property owner’s or landlord’s permission through a written or verbal lease agreement. Tenants have a recognized legal interest in the property with certain rights and protections under state and federal laws, including the Fair Housing Act and local landlord-tenant regulations.

A guest or invitee means a person other than the tenant or person authorized by the landlord to occupy the premises who has permission from the tenant to visit but not to occupy the premises, according to Law Insider, and is not included in the lease or rental agreement. Guests do not have any legal rights to the property, and you, as the landlord, can ask them to leave at any time without following formal eviction procedures.

Related Article: Tenant vs Occupant: What’s the difference?

Why Is It Important to Differentiate Between a Guest and a Tenant?

It’s important to differentiate between a guest and a tenant to maintain control over your property and ensure compliance with applicable laws. Establishing a clear tenant guest policy can help you manage your properties more effectively and avoid potential legal issues.

Tenant Rights: Once an individual is legally classified as a tenant, they are entitled to certain rights and protections under state landlord-tenant laws, such as proper notice before termination, eviction restrictions, and habitable living conditions.

Liabilities and Taxes: Failure to observe tenancy laws can expose you to lawsuits, fines, and even criminal charges for unlawful eviction or housing discrimination. Additionally, rental income from tenants may be subject to taxes that don’t apply to hosting guests.

Property Usage: Tenants generally have more flexibility in how they use and occupy the rented space, while you can impose more rules and restrictions on guests’ activities within your home.

Oklahoma Law on Guests and Tenants

In Oklahoma, the law regarding guests and tenants is governed by the Oklahoma Residential Landlord and Tenant Act. According to the Act, a guest is considered a tenant if they have been staying in the rental property for more than 30 days. However, this can vary depending on the specific circumstances and the terms of the lease agreement.

If a guest is staying in the rental property for an extended period, you can consider adding them to the lease agreement. This would make the guest a legal tenant and subject to the terms and conditions of the lease. Thus, before adding them to the lease, you should ensure that the guest meets the necessary requirements, such as providing proof of income and rental history.

You and your tenants need to understand Oklahoma law regarding guests and tenants to avoid any potential disputes or issues. You should clearly outline their guest policy in the lease agreement, and tenants should know their legal responsibilities and obligations when hosting guests.

How Long Does it Take to Establish Tenancy?

Unfortunately, there is no definitive timeline, as the laws vary by state and depend on multiple circumstances. However, most legal experts agree that 30 days is often considered the threshold.

If someone has lived in your rental property for 30 consecutive days or more, they can be considered a long-term guest, which increases the likelihood of being seen as a tenant in the eyes of the law. This 30-day rule is just a general guideline—the exact rules depend on your location. Also, factors like whether the person pays any kind of regular payment, like “rent,” stores possessions on-site, receives mail there, etc., play a role in determining tenant status.

Here is a brief overview of guest-to-tenant guidelines by state:

California: Presumed to be a tenant after 30 days of occupancy or accepting rent for a shorter term. Exception if guestliness intent is clear.
Florida: After 15 days of occupancy, rights are equivalent to a tenant unless the homeowner can prove the person never intended to treat the property as their permanent home.
New York: Presumed tenant rights kick in at 30 days of occupancy or accepting any form of permanent accommodation such as free rent.
Texas: Exceeding 30 days triggers an implied contract to treat the person as a tenant regardless of whether rent is paid or not unless the person is staying as a guest of the owner/leaseholder.
Illinois: There is no set number of days, but 30 is commonly used. Courts look at specific facts of each case, such as mail, belongings stored on site, possession of keys, etc.
Pennsylvania: A month-to-month tenancy is presumed after 30 consecutive days unless occupancy was never intended to be permanent.

What Factors Determine Guest vs Tenant Status?

what factors determine guest vs tenant status

Here are the most common factors to consider:

Length of Stay: The most obvious indicator is the duration of the person’s stay. Generally, guests are individuals who stay for a short period, typically less than a month. Tenants, on the other hand, are those who occupy the property for an extended period, often with a lease agreement in place.

Payment of Rent: If the individual is paying rent or a similar fee for their stay, or if the guest contributes to household expenses for more than a month, they are likely considered a tenant. Guests usually do not pay rent if their length of stay is less than a month, although they may contribute to household expenses or offer a token sum as a gesture of appreciation.

Exclusive Possession: Tenants have exclusive possession of the rental unit, meaning they have the right to control access to the property. Guests, on the other hand, do not have this level of control and are subject to the rules and restrictions set by the property owner or primary tenant.

Lease Agreement: The existence of a written lease agreement is a strong indicator of a tenancy relationship. Most commonly, guests do not have such agreements in place, as their stay is intended to be temporary.

Signs To Watch Out For

It’s important to be aware of subtle signs that could a “guest” is overstaying their welcome and acting like they live there without your consent. Here are some warning signs to look for:

  • They start making decisions or requests as if they live there full-time instead of visiting.
  • You notice mail, packages, or other deliveries arriving in their name regularly at your property address over weeks/months.
  • Their belongings appear to be moved in permanently versus temporarily stored for a short visit.
  • You see them at the property virtually every day rather than being “out and about” as a legitimate guest would be.
  • They begin using more utilities or other resources as if living there full-time versus moderate occasional use.

What Are the Steps to Take When a Guest Becomes a Tenant?

If a guest’s stay exceeds the typical guest period and they begin exhibiting characteristics of a tenant, it’s important to take prompt action to protect your interests as a landlord. Here are some recommended steps:

  • Communicate Clearly: Have an open and honest conversation with the individual, explaining that their extended stay has transitioned them from a guest to a guest-turned-tenant status. Outline the implications of this change, including the need for a formal lease agreement and adherence to landlord-tenant laws.
  • Draft a Lease Agreement: If the individual wishes to remain on the property as a tenant, draft a comprehensive lease agreement that outlines the terms and conditions of their tenancy, including rent, security deposit, duration, and rules and regulations.
  • Comply with Landlord-Tenant Laws: Once a tenancy relationship is established, ensure that you comply with all relevant landlord-tenant laws in your state or jurisdiction. This may include providing proper notice for rent increases, maintaining habitable living conditions, and following proper eviction procedures if necessary.
  • Document Everything: Maintain detailed records of all communications, agreements, and interactions with the tenant. This documentation can be invaluable in the event of any legal disputes or misunderstandings.

What to Do When a Guest Starts Paying Rent on Rental Property?

Now, what will you do if a guest starts paying rent? Just thinking about this gives you headaches, isn’t it? So, let’s get on this: if a guest starts paying rent, it can create a complex situation for you and the tenant. In most cases, a guest who pays rent is considered a tenant, and you may be required to provide them with the same rights and protections as the original tenant.

If a guest starts paying rent, you should take the following steps:

Review the Lease Agreement: Check the rental contract to see if it includes a provision for guests paying rent. If it does, you should follow the procedures outlined in the agreement.

Determine the Guest’s Status: You should determine whether the guest is a tenant or a subtenant. If the guest is a tenant, you should provide them with a written lease agreement that outlines their rights and responsibilities.

Update the Lease Agreement: If the guest becomes a tenant, you should update the lease agreement to reflect the change. This may involve adding the guest’s name to the lease and outlining their responsibilities and obligations.

Notify the Tenant: You need to notify the original tenant that the guest is now a new tenant and provide them with a copy of the updated lease agreement.

It’s essential for you to handle the situation carefully to avoid any potential disputes or issues. If you are unsure about how to proceed, consult with an attorney or seek advice from a local landlord-tenant organization.

Understanding the Rights and Responsibilities of Tenants and Guests

Tenants and guests have different rights and responsibilities when it comes to rental properties. Understanding these differences is essential to avoid any potential disputes or issues.

Tenants have the right to:

  • Quiet enjoyment of the rental property.
  • Receive written notice of any changes to the lease agreement.
  • Request repairs and maintenance to the rental property.
  • Have guests visit them in the rental property.

However, tenants also have responsibilities, such as:

  • Paying rent on time.
  • Maintaining the rental property and keeping it clean and tidy.
  • Notifying the landlord of any damages or issues with the rental property.
  • Complying with the terms and conditions of the rental agreement.

Guests, on the other hand, have limited rights and responsibilities. They are expected to:

  • Respect the terms and conditions of the lease agreement.
  • Not cause any damage to the rental property.
  • Not disturb the peace and quiet of the rental property.
  • Leave the rental property when requested to do so by the tenant or landlord.

However, guests do not have the same rights as tenants, such as the right to quiet enjoyment or the right to request repairs and maintenance. If a guest is staying in the rental property for an extended period, you can consider adding them to the rental agreement, which would make them a legal tenant and subject to the terms and conditions of the lease.

When Does A Guest Become A Tenant? FAQs

Can a guest become a tenant without a lease agreement?

Yes, a guest can become a tenant without a formal written lease agreement through the concept of implied tenancy or tenancy at will, thereby establishing a landlord tenant relationship. This can occur when a guest remains on the property beyond the initially agreed-upon duration, and the host accepts payment without objection.

How long can someone stay as a guest?

The definition of a guest can vary, but generally, a stay of a few days to a couple of weeks is considered temporary. Staying longer can imply a tenant relationship.

What are the legal implications if a guest becomes a tenant?

If a guest is deemed a tenant, they may gain rights such as protection from eviction and the right to privacy, depending on local laws.

What should landlords do to avoid guests becoming tenants?

Clearly outline guest policies in rental agreements, monitor the length of stays, and communicate expectations with guests.

What should I do if a guest overstays?

Communicate with the guest about the situation. If necessary, consult local laws regarding eviction procedures to remove the guest legally.

scott nachatilo

Author

Scott Nachatilo is an investor, property manager and owner of OKC Home Realty Services – one of the best property management companies in Oklahoma City. His mission is to help landlords and real estate investors to manage their property in Oklahoma.
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