Send deposit refund or bill to all room mate tenants or one?

Question

In the past I've collected the money from one person and sent the check out to one person. In this case I will need to deduct from their security deposit. They may get a partial refund or they may get a bill. I'm not looking forward to sending a bill via certified mail to ALL four of these tenants (they are all on the lease and all signed) but I'm guessing that I MUST?

In the past I did deduct from other tenants that were room mates and they agreed that one person would collect and disburse the money. With these people I'm a bit leery and I think I must send a bill to ALL of them especially if there is no refund and just a bill.

Cameron Tope · Answer

@Jack B. We have student rentals in Athens, OH and what @Nathan G. described is exactly what we do - ask the tenants. Usually we return it to one tenant and they disperse to the other residents but as long as they all know who's receiving the check, it hasn't been a problem.

Best of luck!

Nathan Gesner · Answer

There are three viable options for returning a deposit:

1. Pay the deposit back to the individual that gave it to you. If one person wrote you a check, give it back to that one person. If three roommates each paid a share, return their share. This may get difficult if three tenants paid three different amounts and you have to make deductions.

2. Make one payment and name all occupants on the check. This requires them to cash it together and then figure out among themselves how to disburse the money.

3. My favorite option is to ask them. When the tenant gives notice, give them a simple one-page form that explains the deposit refund policy. Require them to check a box opting for the refund to go to one person or to all tenants. Give them a space to provide a forwarding address of where to send the payment. Have all tenants sign. This ensures no confusion as to how you will pay and where you will pay.

Theresa Harris · Answer

Nathan has good options.  I would pay it back to the person who gave it to me in the first place. I would send all of them a notice of what was done.  In the case of a bill, I would definitely send it to all four of them making it clear what the TOTAL amount is, so they don't each think they owe that amount (e.g. $100 total is $25 each rather than $100 each).

Mike S. · Answer

My policy is everyone on the lease is on the check.  I don't get involved in how they manage getting money distributed.  If someone wants to be the only payee, the other tenants will need to sign a release form.

Mark H. Porter · Answer

I always buy the deposit back to the person(s) that gave it to me.  If you are making deductions due to common areas then all should see he deductions evenly.

Send deposit refund or bill to all room mate tenants or one?

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