Mountain House, CA · Member since 2018 · 8 posts · 1 vote
Hi BP,
I currently have five tenants on the lease that expIre In September. One of them gave 30 days notice to be remove from the lease. Please help provIde some suggestIons how to handle It.
thanks so much!!
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
This is almost inevitable in roommate situations. You should prepare for it by making it worth your time and ensuring it's properly documented.
I have a one-page addendum to add or remove a tenant and I charge a $50 fee for my time (it takes 15 minutes but I'm running a business, not a charity).
If I have multiple tenants and Tenant A wants to move out, I have them fill out the addendum and pay the fee. The addendum says:
1. Tenant A is moving out no later than (enter date). Once he is out, he will turn in his key and gives up all rights and responsibilities to the property and the lease.
2. We do not refund any portion of the deposit until the entire lease is terminated and all tenants are out. Therefore, if Tenant A is owed a portion of the deposit, he must collect that from the remaining tenants.
3. The remaining tenants understand they are taking full responsibility for the terms of the lease and the condition of the home. When they move out in six months, they can't blame the stained carpet on the tenant that left. If Tenant A is responsible for any repairs, they should require Tenant A to pay for that repair prior to departure.
That's a paraphrase but you get the idea. Search Google for "Early Termination Addendum" and I'm sure you'll turn up plenty of samples to build yours off of.
HINT: Any time tenants are doing something that requires you to deviate from the lease, you should charge for it and you should put it in writing.
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
7y
Tell the tenant its 1 lease and they are all parties to the lease . It doesnt get changed because you want to break it . Then explain to the remaining tenants the full amount is still due , whether 1 person it there or all 5 .
Do as @Matthew Paul recommended. You do not remove one tenant from a group simply because they wish to leave early. You take them off when the lease renews.
If they want you to screen a new tenant you may consider at that time drawing up a new lease with the same termination date as the original.
The existing tenants resolve any deposit issue among themselves.
Rental Property Investor · Cleveland, MN · Member since 2017 · 518 posts · 354 votes
7y
One other option. If the other 4 are in agreement and willing to split total rent by 4 instead of 5, then write a new lease for the 4 of them to sign. You'll be getting the same money just with fewer utilities. They will also have to pay him his portion of the deposit back if they think he deserves it. Maybe they are happy to get rid of him.
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
This is almost inevitable in roommate situations. You should prepare for it by making it worth your time and ensuring it's properly documented.
I have a one-page addendum to add or remove a tenant and I charge a $50 fee for my time (it takes 15 minutes but I'm running a business, not a charity).
If I have multiple tenants and Tenant A wants to move out, I have them fill out the addendum and pay the fee. The addendum says:
1. Tenant A is moving out no later than (enter date). Once he is out, he will turn in his key and gives up all rights and responsibilities to the property and the lease.
2. We do not refund any portion of the deposit until the entire lease is terminated and all tenants are out. Therefore, if Tenant A is owed a portion of the deposit, he must collect that from the remaining tenants.
3. The remaining tenants understand they are taking full responsibility for the terms of the lease and the condition of the home. When they move out in six months, they can't blame the stained carpet on the tenant that left. If Tenant A is responsible for any repairs, they should require Tenant A to pay for that repair prior to departure.
That's a paraphrase but you get the idea. Search Google for "Early Termination Addendum" and I'm sure you'll turn up plenty of samples to build yours off of.
HINT: Any time tenants are doing something that requires you to deviate from the lease, you should charge for it and you should put it in writing.
There is only one lease. All parties are jointly and severally bound by the terms of the lease. One roommate wants out? The rent stays the same. Deposit is only refunded at the termination of the lease, less any reasonable charges for damage. If Johnny wants to drop out of school, or move in with his girlfriend somewhere else, he is going to have to negotiate with the remaining tenants to get his share of the deposit. We do not do a lease addendum. We charge $250 as a lease change fee, removing the old tenant and if applicable, adding the new tenant. Want to add a new tenant to replace Johnny? He has to pass the same screening process that the original tenants passed. This includes fees. That lease change fee is specified in the original lease regarding all changes to the lease made at the tenants request. All tenants (and guarantors, if applicable) sign the new lease. We use docusign, so it is easy.