So I acquired a new building a few months ago and one of the units is occupied by three roommates (two of them are sisters and one is their friend).
Their existing lease runs through October, but the friend is looking to move in with her boyfriend by July 1 and has already identified someone to sublet the apartment. The potential sublet person is friends with the sisters so they're all on the same page and approve.
My question is how should I handle this process wise? I've told the tenant that the potential replacement has to be approved by me and if so, then we can take the next steps. Should I sign a new lease with all tenants? Do an addendum to the existing lease? And how should I handle the deposit return?
I know I need to walk the unit and execute a move-out with the friend, but not sure how I should process the rest. Any help or guidance would be greatly appreciated.
New lease, all tenants must pass your rental criteria and reference check.
I wouldn't get involved in the "subletting" or roommate search or any roommate drama (roommates often break up and move out at the last minute).
Thanks @Jon K.
Think this is the easiest and cleaner option vs. trying to do an addendum. I'm definitely not trying to be in the subletting business, so hopefully this person passes the criteria and things go smooth.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing