unsure about what to do when releasing to my current tenant

6 Replies

I have a tenant currently who has been in my townhouse for almost a year now. Lease ending in November (next month). Her current lease was for her and her aunt to move in. Long story short her aunt didn't end up moving in and it was only the current tenant. Though her aunt was paying all of her rent payments to me, early. Rent is 1100.00 at this point. I sent her an email about a month ago notifying her that her lease end date was approaching and gave her a few options of either releasing for another year or 6 months. Also that the rent was being raised to 1200.00/ month. She wrote back asking me if she could do a 6 month lease with only her on the lease. I'm unsure how to reply to this or how to proceed since her aunt has been the one paying her rent, not her. Do i need to do another background/credit check on her? Is that acceptable/ normal? This is my first full year as a landlord and I'm kind of learning as I'm going. Any responses or criticism is much appreciated. I do all my tenant screening through turbo tenant and my lease creating through law depot. Also any other suggestions for this would be much appreciated as well. 

Thank you, 

Andy

If you didn't screen her before, I would screen her now. If she gives you flack, tell her you cannot renew her lease without it. Be up front and tell her that you're nervous about removing her aunt given that her aunt has been the one paying the rent.

Originally posted by @Kristina Heimstaedt :

If you didn't screen her before, I would screen her now. If she gives you flack, tell her you cannot renew her lease without it. Be up front and tell her that you're nervous about removing her aunt given that her aunt has been the one paying the rent..

Thank you so much for your quick response! That helped me out so much!

Also you need to sort out the security deposit.  If two of them were on the lease and moved out, I give whatever's left from the security deposit in the form of a check made out to everyone on the lease.  "Tenant 1 and tenant 2".  Then they can figure out who's money is who's.  If she stays, does the aunt no longer have any claim to the security deposit when she leaves?  I'd want something in writing from the aunt agreeing to that. Or, I'd given them a check for the existing deposit made out to the two of them and want a new security deposit from just the remaining tenant.

I would definatly screen.

As for the deposit I would not deal with it at all. One tenant is leaving, one staying, let them work out the deposit between the two of them. There should not be any deductions from the deposit assuming you have done regular inspections, repaired and charged the tenant for the costs. A deposit should never be touched until final move out. 

This situation is not a move out only a removal of one name from the lease. In the future make sure all tenants are screened and qualify not only the one that is paying. That way this situation does not arise again.

On the security deposit I would confirm in writing if you are carrying it over. If one person leaves I have them sign a release that thier lease has ended and that you no outstanding deposits are owed to them. Alternately and most often the second original tenant sends a request to transfer the deposit. Basically they settle up on the deposit if possible.

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