Tenants separated. Who to write security deposit refund check payable to?

Question

The drama with my rental in Hawaii never ends.

I just found out that the tenants, who are married, are going through a marital separation right now as the lease is coming to an early end (I got them to sign a Quit & Vacate letter to terminate the lease early, a whole other story...)

The lease names them both -- John and Jane Doe ("Tenant"), and they both signed the lease as Tenant.

When they signed the lease, they gave me a cashiers check from the credit union, but it does not name them on the cashiers check.

I know that the money came from Jane's account, as during the interview process she said she inherited a lot of money and that she would be paying me.

Considering that they are probably going to be maritally separated, who do I write the security deposit refund check (less expenses) payable to? My inclination is to write it just like the lease names the Tenant, "Payable to: John and Jane Doe" and let them figure it out.

I've e-mailed my attorney (asking him all these questions is getting ridiculously expensive), but was wondering what other landlords have done in this situation.

Scott K. · Answer

The lawyer told me also to put both names on the check just as "Tenant" is defined in the lease, "John AND Jane Doe"

Account Closed · Answer

Your inclination is correct.  Both names for them, ot the court to figger out.  Why you having o much drama in Hawaii?

Shane H. · Answer

@Scott Keen   Sorry for all your drama, doesnt sound fun.

Appears you have it figured out, but I was going to 2nd and 3rd what the others had said - include both names, thats what we do when paying insurance claims - sometimes one party gets upset if they are not on good terms with the other party and vice versa, however legally if the policy is in both their names both need to be paid, I'd assume the same principle would easily apply to a lease document.   Run into this situation with divorced couples, or boyfriend/girlfriend who had polices together and then split, but not removing one or the other etc.  If you just make the check out to one, might open yourself up to trouble with the other claiming they never saw any of the money.

I'd definitely document who you gave the check to, how it's made out etc...

Steve Babiak · Answer

You can try asking them and request their reply to be in writing to CYA. I have had roommate situations where one acknowledged owing the other money that they agreed would come from the deposit.

But if they do not agree, then you put all names from the lease on the check and let them figure it out.

Scott K. · Answer

My screening process works great for Virginia, never had a bad tenant in 8 years. Renewed leases with several of the tenants.

For Hawaii, I did the same thing -- pull up credit report, look for public records, check references. References said they were great, but I'm guessing now they were all confederates trying to help out their friends.

Scott K. · Answer

Looks like it went from bad to worse. The tenant's wife just left today and the husband said he has no money, no place to go, and he's not leaving my property. I'm going to have to go the eviction route it looks. We're going to try and offer him some of the pre-paid rent refund to leave now, and give him the rest once he's completely out.

Linda Weygant · Answer

Sounds like you're having a real issue with screening tenants.  What is your process?

Patrick L. · Answer

Yes, write it out exactly as the lease is written and let it be their problem to sort out how the funds are split.

Scott K. · Answer

Thanks for all the replies, and confirming that I should write the check payable to "John AND Jane Doe", just as they are defined as "Tenant" in the lease agreement.

Sorry for that long rant about my drama issues, just something I had to unload at the time I guess.

Bill Gulley · Answer

Didn't read the drama. The check needs to be written to both of them, you can't choose who gets what. They can or the courts can, but not you. :)