Tenant leaves early, but found replacement

5 Replies

Hello - 

1 of the 3 room mates is leaving 4 months prior to the lease being up.  She found a replacement who gets along with the other two tenants.  They have been great, house is clean, etc. 

Should I have all 3 sign a new lease?  Do the walk-through again as if they were all moving out and then start fresh?

Are their documents for this type of situation that need to be signed?

They tenant who is moving out wants her security deposit back.  We are willing to do this because she has been good, but are not sure of the protocol here?

Any thoughts?  Thanks!

Are all three on the existing lease?  Or are there separate leases and security deposits with each?

If its one lease and you're willing to make the change, create a new lease with the new tenants.  Have the new tenant pay the old tenant the security deposit.   Make the new tenant aware they may be on the hook for damage done by the old tenant.  

If they're not OK with that, then treat it as a moveout.  Inspect the property carefully (hard to do with stuff there), figure out deductions, fix anything that needs fixing and return whatever is left as a check made out to "A and B and C".  Then get a new security deposit for the new lease from A and B and D.  Unless there are the worlds best tenants there would almost certainly be deductions after they move out, so the person leaving would not get back their full deposit.

All 3 are on the original lease.

"If its one lease and you're willing to make the change, create a new lease with the new tenants.  Have the new tenant pay the old tenant the security deposit.   Make the new tenant aware they may be on the hook for damage done by the old tenant." 

I'm thinking this approach will work.  If so, it will make my job easier.  Are there any down sides to this?  The tenant who is leaving and the new tenant would need to be on the same page entirely in case an issue does arise at the end of their term.

I would just type up an addendum stating that Jane is moving out and Jill is moving in. Let them deal with the security deposit. They can have Jill give her share to Jane and be done with her. Then when they all move out, make the security deposit check out to the 3 that are living there.

The security deposit is the most contentious problem because the person that leaves have to pretty much give it up. I cannot tell them how much of it I am going to return before i fixup the property for the next tenant. But I cannot fix it up until they leave. they may trash the place before that.

So I let them figure out what to do about it but I am not returning the security deposit until all of them vacate the property and have my crew go over every little detail and gives me a repair estimate.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.