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have you talked with the cousin? since this guy isn't actually on the lease, what's the landlord have to do with anything? you may find yourselves in trouble for having an unauthorized tennant, so i'd be careful there.
i'd talk to the orignial friend who was going to move in. he's on the lease so it is his responsibility imo. basically, he subletted his room to his cousin, that makes it his problem to make sure he's living by the rules of the house. i know when i subletted my apt in college, if the subs trashed the place i was the one the landlord would hold responsible. if they didn't pay the rent, i still had to pay the landlord. and while many wouldn't classify smoking in the house as a big deal, if it is in your lease that you won't--the landlord could toss you out based on the cousin's actions.
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