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If you knew about it... my concern is just that the Tribunal is so tenant-friendly; if you can get four people on the lease rather than one, you should jump at it, whether there's extra $ attached or not. I seriously doubt that the Tribunal would allow you to evict them for having others live...

I'd be a little cautious about this approach, because there's a good chance that the tenant will say "sod off, I'm not paying more rent", and will just let the others live there without putting them on the lease. :(

Four people in a 2BR apartment is not going to exceed any occupancy requirements, as a family of 2 adults 2 kids could surely live in a 2BR apartment. I'd be glad that the tenant has told you, and not just gone ahead and done it. I'd want them all named on the lease so that I had recourse...