We rented a 3 bedroom home to 3 adults and 1 child, the tenants are in a fixed term lease. After they moved in, they took on 5 foster children without notifying us. After we found out, we gave them a 30 day notice of termination based on unauthorized occupants. They have since accused us of discrimination due to the foster children being included in the familial protected class. Although we still feel that 9 occupants in a 3 bedroom house is too many, we may be required to allow them to stay. That said, we would like to at lease have the option to increase their security deposit due to the additional potential wear and tear of 6 children and 9 total occupants.
Our screening criteria allows a maximum occupancy of 2 per bedroom plus 1 for the dwelling. Being a 3-bedroom home, this would allow for 7 occupants. That said, the home has a bonus room (no door or closet) that the tenant may claim is being used as a bedroom, however, a recent inspection proved that it is not setup as a bedroom.
Can anyone provide feedback on our options to increase the security deposit or terminate the rental agreement? The rental agreement clearly states that adding unauthorized occupants is a violation of the rental agreement, however, they are all under the age of 18 and would not have been screened if they had notified us of them prior to moving in.
We are in the state of Oregon, thank you in advance for your help.