3 roommates on lease, 1 leaving

[Shawn M.]

I'm a property owner and I have a lease with 3 roommates on it. One roommate will be leaving at the end of the term. She has found someone to replace her on the lease because the 2 others want to stay.

My question is should I do an entire new lease with the 2 old & 1 new names on it.

or Keep the existing lease and make an addendum that replaces old roommate with new roommate?

[Jon Holdman]

If an addendum is easier and they're agreeable, I'd tell them to sort the security deposit out on their own. But get it in writing that the security deposit that would have previously been returned to "A and B and C" will now be returned to "A and B and D". If they're not agreeable to that, terminate the existing lease, inspect the property and determine the deductions to the deposit. Return the remainder to A and B and C and then collect a new deposit from A and B and D. But do fix whatever issues you deduct for.