I am a first time landlord. I purchased my first rental last year with tenants.
They have been really good tenants until today. one of tenants want to move out bc she doesnt get along with her roommate.
They are both on the lease.
How do I handle in this case?
The lease is still valid and they are both fully responsible for all aspects of the lease until the lease terminates whether or not they both live there.
However, if a new resident moves in they must be added to the lease giving you an additional party responsible for fulfilling the lease.
I agree with @Curtis Bidwell . I would just like to add that if the person moving out wants their share of the security deposit, do not give it to them, because they are still responsible for the condition of the unit. When everyone on the lease moves out, then make the security deposit refund out to everyone that is on the lease. Let them figure out how to split it up.
Yep, nothing changes as far as you're concerned. They're still both on the lease, both responsible for the lease and both have a share of the security deposit.
Both tenants are equally responsible for fulfilling lease requirements. Just because one can't get along, doesn't mean he / she can walk away free.
Hope it helps.
Just out of curiosity.
Do you have anything in the rental agreement about moving out early?
Or what is in the rules about finding a sub-leaser?
In the University area I plan to work in this is common, and there are rules and stipulations in the contracts about getting someone to sub-let.
It is really on them to figure it out.
You should try to be pro-active about the situation.
Don't let them just walk away, they still signed a lease.
Everyone is correct about the lease responsibilities. The lease wording is "joint and severalty", meaning they are both responsible, even if one moves away, and can be sued or brought to collections, if need be.
Now, practicalities of how to handle it so you get back two good tenants. First and foremost are YOUR interests in the property. Keep that in mind and don't overextend just to be nice. Sound selfish but what you do not want to do is make the property or yourself vulnerable in this. The idea is to get good tenants with no financial hiccups
If you like the tenant who wants to stay, you can put the burden of finding a replacement on the tenants. That prospective tenant should be fully vetted and approved, not just someone who says they would like to move in. Complete credit check, income verification and references. Don't accept a less-qualified tenant just to solve this (that's the selfish part I mentioned above.)
Let the one who wants to move know she will be responsible for rent and no security deposit will be returned until a new tenant is found. (She will be highly motivated to find a new tenant once learning that.)
Once you have an approved applicant, first month's rent and security deposit portion to replace the exiting tenants, you should sign a new lease with the tenants who will live there. And remove the name of the exiting tenant and return her portion of the deposit. (Another detail in this is if there are any damages to the property or security issue concerns, unless those are taken out of the exiting tenants portion, the new tenant will assume that liability.)
I'm not sure if others above where suggesting to keep someone's name on the lease even if she has moved out, if so, that would seem unfair. If you have two good tenants, there is no reason to keep the other on the lease and it's better to fully let her go. You don't want a spiteful ex-tenant (or parents!) creating problems. Keep paperwork clean and easily checked if future reference is needed.
The whole point is to get you two good tenants, keep the property in good condition and keep the investment income on track. Being overly involved in tenant search, getting pulled into tenant squabbles, or being demanding or lording over tenants will not help with the main points so don't do them.
Finally, make sure you adhere to the lease as well. It's the agreement for both tenant and owners and also your protection, when needed. If any of my suggestions would violate the lease, adhering to the lease takes priority.
Good luck. Update how the transition went.
I agree with the above posts and would like to caution you on who and how the utilities will be paid as well. If the remaining tenant is going to attempt to pay for everything it may put her in a financial difficulty to pay the rent on time.
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