1 of 3 tenants wants out of his lease and asked about his security deposit

[Dave Godfrey]

Hi guys. I have a group of three young professionals living in a property. I have a ten page plain-language lease that states the lease will renew for another year if the proper notice has not been given. I received an email today with a two week notice of moving out (so 5/31). He was supposed to give 60 days notice.

He asked about security deposit. The other two guys are staying... but I don't know more than that. I have a the security deposit at a local bank. The bank statement for the security deposit comes to me (I provided the bank with the names of all three tenants when I set it up).

I want to be fair... but I think I want to avoid setting a precedent though too. Overall they have been good tenants in the first year.

Thoughts on how you would handle this situation?


Thanks!
Dave

[Michele Fischer]

Dave,

You may want to read this other thread, good advice: http://www.biggerpockets.com/forums/52/topics/1956...

We have rented to 3 college students.  When one moved out, no deposit was returned from us, it was up to them to work that out.  They submitted applications for a third roommate until they found one we'd accept.  Maybe the incoming paid a deposit to the two students that was then returned to the one moving out.  Regardless, not our problem.  But could depend on your rental agreement wording.

Does your tenant landlord law require that the deposit be held in their name?  You may be making it more complicated than you need to.  We have one segregated bank account for deposits, in our name, and we are just careful to account for ins and outs and that the balance ties to what belongs in there.