One tenant wants to moveout

[Manoj N.]

I leased my single family home in Colorado to three ladies. They signed a joint and several lease on Oct 1st. One person wants to move out before the lease ends citing differences with others. She is looking for a replacement tenant. A few questions.

1. Can I refuse the replacement offer and insist that she stays till the end of lease (May 31)

2. In case 1 is not an option, Should I do background check/credit check of the replacement tenant ? What if none of her replacement meets my standard ?

3. How do I deal with her part of the security deposit ? They paid security deposit with a single check. 

Thanks

[Marcia Maynard]

People will move when they want to move. It is not uncommon to see changes in the makeup of a household. Anticipate this. Set up a process for handling this in an efficient and smooth manner.

Your concern should be if the remaining tenants have sufficient means on their own to qualify for the property. The entire security deposit should stay intact until a future time when the unit is vacant and you have regained possession. The tenants can work out among themselves what share the departing tenant gets at this juncture, you need not touch it. 

Employ a process for removing the outgoing tenant from the lease and charge a reasonable fee for this administrative work. If the remaining tenants can not afford to stay on their own in the property, allow them to break the lease, but compensate yourself for your time and trouble by having a "break lease" clause in your lease agreement from the get go.

Any time you anticipate adding someone to the household, require the incoming person to complete an application, pay an application fee and do the background checks. Do not allow the outgoing tenant to sublet. Establish an "unauthorized occupant" clause, with a hefty fee for violating this, in your lease/rental agreement.