Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 10 years ago on . Most recent reply

User Stats

242
Posts
61
Votes
John K.
  • Investor
  • Madison, WI
61
Votes |
242
Posts

Tenants Changing In Unit Security Deposit

John K.
  • Investor
  • Madison, WI
Posted

Situation: Two adults, two children.  The two adults are parent and child (over 18), both are on the current lease.  They were inherited tenants, and have been EXCELLENT tenants almost always paying on time like clockwork and not having any issues.  

The child is moving out, and the parent was originally going to move.  We listed it - and now they want to stay.  Since winter is approaching we want to get them now on a 6 month lease to stay until spring.  

I want the lease to be in my format - so I don't want to just do a assignment or revision - I want just draft a new lease.  

Since the security deposit would be paid to both Parent and Child, and the parent is just staying - what kind of special language do I use to say that the security deposit is being transferred to new lease - but in addition when it is returned it will be made payable to "parent AND child" since they both submitted it?

Most Popular Reply

User Stats

21,918
Posts
12,880
Votes
Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
12,880
Votes |
21,918
Posts
Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
Replied

Close out the account as if they moved, that lease is over, account closed. Make the new lease, show a new deposit. This can be done simply exchanging checks. Your deposits are escrowed funds, not yours to use or assign to one or another depositor. Keeps your books clean and compliant with escrow account laws. Good luck :)

Loading replies...