Tenants split, one staying. Security deposit?

Question

Hi,

Tenants split up and had initially agreed to have one removed from lease.  Person being removed is now requesting to get part of their deposit back when the other person moves out.  Lease states that deposit is mailed payable to both tenants mailed to one of them.  If one tenants stays and signs a new lease, can i not roll the deposit into the new lease?  I don’t want to return the deposit made payable to both of them if one of them will stay In the house deposit free, they may not send in a new deposit?

Advice?

Christine Kankowski · Answer

What Nathan said is great.   WE also require the deposit wi stay with the property, since we aren't doing a move out inspection until all tenants leave.   The departing tenant needs to work it out with the remaining tenant.

Nathan Gesner · Answer

This should be done in writing and agreed to by all parties before Tenant A leaves. Here's my agreement:

This Addendum is to remove the Tenant, ____________________________________, from the Lease Agreement dated ____________________ for the property know as _________________________________. The undersigned understands and agrees that:

• The original terms of the Rental      Agreement, addendums, attachments and change of terms will remain in      effect, with no exceptions unless      otherwise agreed to by all parties in writing.
• This addendum removes the afore-mentioned Tenant from the      Rental Agreement and said Tenant is no longer responsible to the terms of      this Agreement as of ________________.
• Tenant shall pay a $50 administrative      fee at the office for the processing of this request. Fee shall be paid      in the form of a money order, cashiers check, or direct deposit.
• Any reimbursement of funds between the      departing Tenant and remaining Tenants regarding the Security Deposit is      to be settled between them.
• Release of the Security Deposit, or any      portion thereof, will not take place until all Tenants vacate.
• After vacancy, American West Realty will      settle all Security Deposit funds with the current Tenants on the Rental      Agreement.

Corina Eufinger · Answer

They way we have it in our leases is the security deposit stays with the unit.   This forces the tenants to resovle it between themselves.  What usually happens is the tenant staying pays the moving roommate for that portion of the security deposit. We stay out of it completely.

In the current situation since it sounds like your lease doesn't provide for the way you would like it handled, you should get an agreement in writing signed by both tenants outlining what will happen to the security deposit.

Cameron Tope · Answer

Hey Daniel,

Since one of the old tenants is moving out, you're going to sign a new lease for the renewal correct?

That will require you to get all of the new deposit (from the tenant that's staying).

We would have the tenant that's staying pay the difference before we return the security deposit to the tenant that's moving out.

Will Fraser · Answer

Hi @Daniel B. - I'd try to have Tenant A (who is remaining in the home) top up their security deposit and cash Tenant B out ASAP.  If both parties have agreed to the split and you've documented that, then getting Tenant B's deposit cleared up sooner rather than later is going to be a boon.

Tenants split, one staying. Security deposit?

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