From: johnwu@netcom.com (John M. Wu)
Subject: apartment lease problem
Organization: Netcom - Online Communication Services  (408 241-9760 guest) 
Date: Sat, 21 Nov 1992 07:37:39 GMT

Here is the part that is "set in stone":

I have an apartment lease with 3 roomates.  My parents will be responsible
for the entire rent if any of us can't cough up the whole rent.  I have
a roomate that I don't trust 100% to pay the rent knowing that not paying
on time won't be a problem.  This is the part of the lease I don't think
I can change and I don't like it but moving out is expensive and
more troublesome.

The question:

How can I discourage my other two roomates from not paying the rent on time
if money for them gets tight.  Here is what I've contemplated so far:

1)  Sign a legal contract written by me (my only experience with law is in
a business law course in college) stating that if my father has to bail 
my roomate(s) out, then this is considered a loan with a 50% origination
fee and an APR of 19.8% (usual rate for credit card cash advances).  But
what should the contract say if they don't cough up the principal + fee +
accured interst? 

Problem:  One of my roomates doesn't give a damn about credit.  Bouncing
checks and loans from credit cards don't bother him.  He thinks 19.8% APR
is cheap.  That's why I put in the 50% origination fee.  He has paid rent
one day late so far so I am worried.  If I have to execute this, he probably
won't cough up the cash with any great speed so how will I deal with that,
in court?   Then if I go soft on him with this agreement, then don't I
encourage him to do it again?  I guess my terms are really harsh but then
again not paying rent and getting away with it is a worse outcome.  But then
I am a kind human being, not an Ebenezer Scrooge capitalist so I could get
suckered into forgetting the penalties.

I perfer to ask here this before I ask them:  Is there any reason not to sign
this if they intend to pay rent promptly every month?

If anyone is a lawyer out there, what are the basics to making a legal 
contract such as this legally binding?  

2)  Make their parents sign the lease.  The roomate in question has a problem
with them so I don't think that is the correct path to follow. 

3)  Require a deposit which is forefitted if rent isn't paid.   Roomates 
won't like this one.

4)  Move out.  I much rather not do this but I cannot let my parents be 
responsibe for this without a cushion of some kind. Of course, me moving
out makes their rent exhorbriantly high and will crush them financially. 
This will probably happen if they don't agree to 1, 2, or 3.

Any other suggestions?  I prefer something not so harsh yet effective.
Moving out should be the only if there is no fair way to deal with this.

Sorry if I posted to the wrong newsgroups but an 'rn law' didn't turn out
any relevant newsgroups.

I prefer replies by mail.  I will summarize for anyone who requests by mail
as well.

Thanks in advance for reading this and replying with advice.
 
-- 
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- John Wu                       "I saw a bird in my sight                - 
- johnwu@netcom.com              something dropped into my eye           -
- jmw@ocf.berkeley.edu           I'm a big boy so I won't cry            -
-                                I'm sure glad that cows don't fly!"     - 
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