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Laws against/for multiple families living in same house

I have a potential tenant that has two children. She wants to rent our 3 bedroom house and move her brother, his wife and baby in!

That seems like a lot of people/tenants. If you dont feel comfortable renting, then dont... however, be careful how you deny an application.
That does seem like a lot of people for a three bedroom.  What is there plan to sleep all of them and for how long?  There are also state law that state how many people can live in certain size houses.  As a landlord, one of your best defense is your first mind.  I use mine all the time, if I don't think it is a good idea, I don't second think it.  If you deny the application, you should be careful how you word it, but too many people for the size of the unit sounds like a reason to me.
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