There are many cases where it may be practical to designate someone as a licensed occupant and not a tenant. It may be a useful compromise that can benefit both landlords and tenants, but what it is not is a way of playing in the system. Similarly, there may be cases where one tenant can help another by paying most or all of the rent. This is often the case for couples with different income levels, but the problem for landlords may arise if the couple separates and the main feeder disengages at the end of the lease. The remaining tenant may not be able to pay the rent, but there could be a long battle to reclaim the property if he refuses to move. In these circumstances, the designation of the second person as a licensed occupier and not as a tenant could give the lessor more security, since the underrated tenant is not entitled to continue to reside in the property without the principal wage. You may have heard the term “eligible occupant” for leases. But what does this mean and how is a licensed occupant different from a tenant? The authorized occupancy name may be useful for both landlords and tenants in certain circumstances, but there are a few pitfalls to watch out for. Approved occupants should exercise a high degree of caution. First, it is a question of determining why the potential resident wishes to be a licensed occupant and not a tenant. Second, an agency should not behave with what a potential tenant does or does not want to do in such a situation. It should behave with the needs of the owner in mind. As a general rule, there is no valid reason why someone over the age of 18 should not be a tenant.
If a person renounces the lease as a licensed occupier, he is not a party, he has no contractual obligations and, above all, he is not even required to pay the rent. They could even be tried for non-payment, and the application would fail. This becomes a problem when the tenant moves, since the authorized occupier can remain legitimate because the tenant has admitted them into the property. In this way, if the tenant leaves the property and no longer pays the rent, the authorized tenant becomes the new tenant and is required to pay the full rent. Of course, even authorized occupants are themselves vulnerable. If something happens to the principal tenant, they can quickly find themselves homeless, with very little legal protection for full tenants.