As a rental agent, your main job is helping landlords find tenants or helping renters find property rentals. Either way, you are going to act as a mediator and negotiator between them. You are required to know everything, even the terms, and definitions because a single word can mean differently.
In this article, we are going to tackle the difference between a tenant and an occupant. It may seem like these words have the same meaning, but actually, they are not. At least, not in the rental business. These terms are not interchangeable. You’ll see the difference in a bit.
Why is it important to use the correct term? Using the wrong word to distinguish the consumer will affect the regulations of the lease agreement, and we all know how important the contract is. Let me list down the difference between a tenant and an occupant.
An occupant is a person living in a property temporarily or permanently. A tenant, on the other hand, is an occupant who signed a contract and has obligations to fulfill. Here are some of the factors wherein they are different from one another:
• Commitments
Every time a tenant signs a lease contract, he is agreeing to a lot of different rules. Tenants have more responsibilities than occupants. For example: paying the rent. They are also obligated to observe the following policies, such as no pets inside the property or smoking only in the designated area. Any violation of the contract will have direct consequences to the tenant, regardless of who performed the act.
• Authorizations
A tenant has to go through the screening process, but an occupant may not. For example, the tenant’s children or dependents are automatically considered occupants. Occupants who are 18 years old and above can be subjected to screening and considered as tenants.
• Rental Payment
Like I’ve said, the tenants pay rent to stay in the property. Occupants are not obligated to pay the landlord. They can share a portion of the rent, but they do not pay the landlord directly. Sometimes they do not pay rent at all. For example, a tenant allows his adult brother to stay in the property without paying for anything.
• Maintenance and Repairs
A landlord must maintain the property and follow the standards for it to remain habitable. This would mean that repairs and renovations are necessary. Property inspections are also done to achieve this.
A tenant who wishes to upgrade his rental by doing renovations can seek the landlord’s approval, but an occupant cannot. Damages to the property, even if caused by an occupant, is the tenant’s responsibility. The landlord can ask the tenant to cover the cost of repairs.
• Moving out of the property
Before a lease expires, the tenant is notified and reminded. It is usually 30-60 days before the expiration date. During this period, they can request to renew their contract. An occupant does not have to let the landlord know if he is moving out of the property.
Using these terms interchangeably can cause confusion and conflict between tenant and landlord. Being careful about what words to use is very important and helpful. Landlords and rental agents must keep this in mind because a single word can make a difference.
When you post property listings at Padleads and syndicating them to other websites from the platform, make sure to use the word tenant and not occupant because it is the appropriate term for what you are looking for. What are you waiting for? Go and sign up right now.