3 tenants. Only 2 renewing. How to handle the 3rd's deposit?

[Jason Krawitz]

Greetings BP folks. I have a property with 3 tenants on the lease. Only 2 are renewing. How would you suggest I handle the security deposit for the 1 tenant that is leaving? Would it be too simple to just refund 1/3 of the total deposit to her and move on? Should I make the other 2 tenants pay the portion of the deposit being refunded to the vacating tenant? 

Thanks!

[Kelly N.]

You can either dictate which option, or let them decide:

A. Have the other two pay you the deposit, and refund the tenant that is leaving

B. Have the remaining tenants pay the leaving tenant, and give you a letter signed by all 3 stating that is what they did.

Also ask the remaining tenants if they want you to do an inspection prior to refunding the vacating tenant's deposit, otherwise when they move they will try to blame the previous tenant for any damages.