Tenant moving out, do we need to rewrite lease?

4 Replies

Hello,

We have 3 tenants in one of our units who signed their lease in September good through Aug 31st 2017.  One tenant has decided to move out and has discussed it with the other two room mates and the two room mates are in agreement and have decided that they will take on the responsibility of the lease between them and may decide to take a 3rd person on down the road.  My question is do I reissue a new lease for the two that are now taking on the responsibility and do we need to refund the person that is moving out his portion of the security deposit ? We technically want to keep one months security in escrow.

Thanks for any advice.

Dolores

You do not refund any money, that will be resolved between the tenants staying and the one leaving. You hold on to the entire original deposit.

It is your decision as to how you want to deal with the lease. If you issue a new lease it should be M2M since the situation going forward is now uncertain.

Thanks Thomas, yes I agree we need to hold the deposit.

If they do end up getting a 3rd tenant down the road who pays a deposit should I mail him his security deposit?

it depends on who gave you the security deposit ?

If its under one name and that tenant is staying, then you hold it. If the leaving tenant asks for a portion, you tell the tenant to see the sec dep name.

If its under the leaving tenant, then you need the other two to put up the new sec dep.

You need to write up a new M2M lease for the two staying tenants.

@Rich N. , thank you - part of the security deposit is under the tenant that is leaving, I will chat to the others and let them know if they are ok with him moving out they will need to put the new sec deposit.

Thank you !!

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