Can You Have Two Apartments in Your Name at the Same Time?
Explore the practical, legal, and financial factors to consider when holding leases for two apartments simultaneously.
Signing a lease often signifies a commitment to one home, but circumstances like job relocations or family needs sometimes lead individuals to consider renting two apartments simultaneously. Holding multiple leases raises practical and legal questions.
Lease Provisions for Multiple Residences
The lease agreements for each property are the first place to check when considering renting two apartments. While standard residential leases usually don’t explicitly forbid holding another lease, certain clauses could be relevant.
Some agreements, particularly in subsidized housing or related to specific mortgages, might require the tenant to use the property as their “primary residence”—the main place where they live, vote, and receive mail. Holding a second lease could conflict with such a clause, depending on its specific wording.
Leases also detail who can live in the unit and restrict its use to residential purposes. These clauses aim to control occupancy and prevent unauthorized activities. While renting a second apartment doesn’t automatically violate these terms in the first, landlords might have rules about extended absences, sometimes requiring notification or granting the landlord entry for maintenance.
Lease agreements often address subletting (renting your unit to someone else temporarily) or assignment (transferring your lease permanently), typically requiring the landlord’s written consent. If planning significant time at a second apartment, leaving the first mostly empty, subletting might be an option, but lease terms must be followed strictly. Reviewing both leases for clauses on primary residency, occupancy, extended absences, or subletting is crucial before committing to a second rental.
Credit and Screening Considerations
Applying for an apartment involves a tenant screening process, where landlords check credit reports and background information to assess reliability. This process will occur for a second apartment application, likely revealing the existing lease obligation.
An existing lease adds to your monthly debt, affecting the debt-to-income (DTI) ratio landlords often scrutinize. Landlords typically prefer tenants whose income is at least three times the rent or whose DTI ratio is below certain thresholds (often 36% to 43%). Applying for a second apartment increases this ratio, potentially making landlords view the applicant as a higher financial risk, even with a good credit history.
The Fair Credit Reporting Act (FCRA) governs how landlords use consumer reports. They must obtain written permission before accessing reports for tenant screening.1Federal Trade Commission. Using Consumer Reports: What Landlords Need to Know Landlords need a “permissible purpose” and cannot use the information improperly.
If a landlord takes “adverse action”—such as denying the application, requiring a co-signer, or charging a higher deposit based on the report—the FCRA requires them to notify the applicant. This notice must include details about the action, the reporting agency’s contact information, a statement that the agency didn’t make the decision, and information about the applicant’s right to get a free report copy and dispute inaccuracies.2Consumer Financial Protection Bureau. What Should I Do If My Rental Application Is Denied Because of a Tenant Screening Report?
Financial Implications
Renting two apartments significantly increases financial obligations. The primary impact is paying rent for both properties each month for the full lease terms.
Securing two apartments also means paying two security deposits upfront. These deposits, often equal to one or more months’ rent per apartment, cover potential damages or unpaid rent and are typically returned only after each lease ends, assuming no deductions are needed. This can tie up a substantial amount of money.
Utility costs also double. Unless the landlord covers utilities, tenants usually pay for electricity, gas, water, internet, and other services for both residences. Minimum monthly charges often apply even if one apartment is rarely used. The lease should specify who pays for which utilities.
Breaking a lease early can lead to significant financial penalties. Depending on the lease and local laws, a tenant might owe rent for the remaining term or until a new tenant is found. Some leases include fixed early termination fees or require forfeiting the security deposit. Landlords might also seek costs associated with re-renting the unit. Careful budgeting and understanding all potential costs, including penalties for early termination, are essential.
Occupancy Limits
Landlords and local governments set occupancy limits, defining the maximum number of people allowed to live in a rental unit to ensure health and safety and prevent overcrowding. These limits are often based on factors like property size, number of bedrooms, and building system capacity.
Standards are frequently guided by local housing codes or federal suggestions, like the U.S. Department of Housing and Urban Development’s informal “two persons per bedroom” guideline. However, specific limits depend on factors like square footage. The International Property Maintenance Code, adopted by many localities, offers detailed standards based on room size.
Holding leases for two separate apartments does not inherently violate occupancy limits for either unit. These limits apply to the number of people physically residing in a single dwelling. As long as the number of occupants in each apartment stays within its specific limit (set by the lease or local ordinance), holding a second lease elsewhere is generally not relevant to this calculation. The focus is on preventing overcrowding within each physical space.
Termination and Eviction Risks
While usually permissible, holding two leases can introduce risks related to lease termination and eviction. Landlords expect tenants to follow all lease terms, and managing two homes might lead to situations perceived as violations.
One risk involves “abandonment.” This generally occurs when a tenant stops paying rent and indicates, through actions or words, they no longer intend to live in the property before the lease ends. Spending most time at one apartment, leaving the other largely vacant, especially if combined with late rent or poor communication, might lead the landlord of the unoccupied unit to suspect abandonment. Lease agreements often define abandonment and outline the landlord’s rights, potentially including lease termination. A landlord’s reasonable belief of abandonment could trigger termination actions, requiring the tenant to prove otherwise.
Specific lease clauses, like a “primary residence” requirement, could also lead to termination. If a lease mandates the unit be the tenant’s main home, spending most time elsewhere could breach this term. Misrepresenting residency during the application process, if discovered later, could also be grounds for termination.
If a landlord believes a lease term has been violated—due to perceived abandonment, breach of a primary residence clause, unauthorized subletting, or another issue—they must typically provide formal written notice first. This “Notice to Cure or Quit” specifies the alleged violation and gives a legally defined period to fix the issue (“cure”) or move out (“quit”).
Failure to comply allows the landlord to file an eviction lawsuit (often called an “unlawful detainer” action). The tenant receives a summons and complaint and has a period to respond and appear in court. If the court rules for the landlord, it issues an order (like a writ of possession) authorizing law enforcement to remove the tenant if they haven’t left. Landlords cannot perform “self-help” evictions, like changing locks, without a court order.
Local Regulatory Factors
City or county regulations where the apartments are located can add another layer of complexity. Local ordinances address various housing aspects based on community priorities.
Access to municipal services tied to residency, like residential parking permits, often requires proof of address, such as a lease, utility bills, or vehicle registration. Navigating these requirements in one locality while having ties elsewhere could be challenging.
Local zoning and property use regulations are also relevant, especially concerning short-term rentals (STRs). Many cities require hosts to register, obtain permits, follow safety rules, and may limit rental days or restrict STRs to certain zones or building types. Operating one apartment as an STR subjects the tenant to these specific local rules, distinct from lease subletting clauses.
Participation in local affordable housing programs usually involves strict residency requirements. These programs often mandate the subsidized unit be the participant’s sole primary residence and may prohibit owning other property. Attempting to maintain status in such a program while leasing another market-rate apartment could violate rules designed to allocate limited resources based on local need. Understanding relevant city or county ordinances is important when considering two leases.
