Half of a tenant couple is moving out

General Landlording & Rental Properties
10yFollow

Half of a tenant couple is moving out

Carol Venolia
Flipper/Rehabber · Monterey, CA · Member since 2014 · 193 posts · 117 votes

Hi all,

I'm sure this happens a lot, but it's the first time it's happened to me. A tenant couple has been having problems, and the guy now wants to move out--in a lot less than 30 days. The gal wants to stay on, and apparently can afford to. The couple is behind on paying me rent by a few hundred dollars, and the guy wants to apply his half of the security deposit to pay part of what he owes me (and pay me the rest in cash).

I'm a bit overwhelmed by the newness of this. Anyone have thoughts or advice on how to proceed?

Many thanks!

Carol

0Reply
15 views

Most Popular Reply

Jennifer Bennett
Investor · Fort Worth, TX · Member since 2011 · 39 posts · 12 votes
10y
Christine is right. My policy: your relationship problems are not my business problems. I keep them both on the lease until the end of the lease. They are both liable for rent and damages. If, at the end of the lease (or on month to month), then we can talk about walking the property & deducting what's necessary from the security deposit, then starting over with new sec dep and new lease with just her on lease. It benefits you to keep them both on lease. Hope this helps!
2Reply
See this reply in the discussion

15 Replies

Jump to latestLatest
  • Christine Mwai
    Investor · Alabaster, AL · Member since 2016 · 280 posts · 88 votes
    10y

    That's a totally new lease in the making..   or no one gets off the old one....

    1Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    10y

    That can always be an issue. I write my leases stating which party is the one to receive a refunds of the deposit. Now, what if THAT designated person wants out? As Christine stated, new lease. If you refund 1/2 the security deposit at this point, is the other tenant will to make up the difference and sign a new lease? If so, that is an easy solution. 

    0Reply
  • Jennifer Bennett
    Investor · Fort Worth, TX · Member since 2011 · 39 posts · 12 votes
    10y
    Christine is right. My policy: your relationship problems are not my business problems. I keep them both on the lease until the end of the lease. They are both liable for rent and damages. If, at the end of the lease (or on month to month), then we can talk about walking the property & deducting what's necessary from the security deposit, then starting over with new sec dep and new lease with just her on lease. It benefits you to keep them both on lease. Hope this helps!
    2Reply
  • Carol Venolia
    OP
    Flipper/Rehabber · Monterey, CA · Member since 2014 · 193 posts · 117 votes
    10y

    Thank you, @Christine Mwai, @John Thedford, and @Jennifer Bennett!

    I forgot to mention one obvious thing: Their rental agreement is month-to-month, so that's not an issue. And I do plan to have the remaining tenant sign a new rental agreement.

    Mostly, I'm wondering how to handle the security deposit, with one person staying. John, you make some great points about how to handle this in the future. And I need to talk with the remaining tenant about whether she can make up the difference if I refund half to the departing tenant. Jennifer, my hope is that we can do what you described.

    Thanks again!

    0Reply
  • Blake Jarrett
    Contractor · Madison, AL · Member since 2016 · 60 posts · 38 votes
    10y
    I have had this happen to me before. In my case the tenants were about 4 months into a 12 month lease. The wife was moving out and wanted to be removed from the lease. I had not had any problems with them before and I had qualified them based on the husbands income, so I did an addendum to remove a resident and had them both sign it. In your case though they are behind on the rent. I'm not so sure I would allow this with them already being behind.
    1Reply
  • Tommy F.
    Investor · Charlotte, NC · Member since 2015 · 183 posts · 146 votes
    10y
    Carol Venolia ,they're not married, right? Or did I miss that? If not, which person's checking account was used for the security deposit?
    0Reply
  • Carol Venolia
    OP
    Flipper/Rehabber · Monterey, CA · Member since 2014 · 193 posts · 117 votes
    10y

    Thanks for sharing your experience, @Blake Jarrett! Glad to hear it went smoothly for you.

    @Tommy F., I'm pretty sure they're not married. Since I'm legally not supposed to ask about marital status, I'm not sure. All their payments to me have been Money Orders, and I haven't kept copies of them. I'm guessing that would be a good idea in the future!

    0Reply
  • Carol Venolia
    OP
    Flipper/Rehabber · Monterey, CA · Member since 2014 · 193 posts · 117 votes
    10y

    @Account Closed, are you saying that money orders aren't a good idea for landlords? Not sure I'm following what you're saying...

    0Reply
  • Carol Venolia
    OP
    Flipper/Rehabber · Monterey, CA · Member since 2014 · 193 posts · 117 votes
    10y

    Thanks for clarifying, @Account Closed! I do love getting paid online, but I'm flexible as long as I get paid.  :-)

    1Reply
  • Rich N.Pro Member
    Investor · Haverhill, MA · Member since 2015 · 761 posts · 328 votes
    10y

    Seeing as they are MTM.  The leaving party needs to complete the 30 day notice. The remaining party needs to start a new lease.  You have to re-qualify just the one person (unless remaining tenant brings in another roomie).  As part of the re-qualify, you follow the whole same procedure and receive the full amount of escrow. If they don't qualify or do not have the funds, then inform them they all have to leave.....you need to find a new tenant (especially seeing as they are already falling behind).

    0Reply
  • Carol Venolia
    OP
    Flipper/Rehabber · Monterey, CA · Member since 2014 · 193 posts · 117 votes
    10y

    Thanks for the input, @Rich N.! Very clear and helpful.  :-)

    0Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    10y

    @Carol Venolia, I would have the remaining tenant refund the leaving tenant his portion of the security deposit. Their relationship problems aren't your business problems. This way, you aren't refunding his portion, thereby "clearing" him of any responsibility. She is the one clearing him of any responsibility.

    [email protected]Podcast Guest on Show #261
    BiggerPockets
    0Reply
  • Carol Venolia
    OP
    Flipper/Rehabber · Monterey, CA · Member since 2014 · 193 posts · 117 votes
    10y

    Thank you, @Mindy Jensen! That approach is so very clear and simple.  :-)

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free