One of two tenants recently passed. The deceased provided security deposit under original lease, which has been subsequently renewed and in a month to month status. Remaining tenant exploring options to remain at the home. Legally, I believe, the options moving forward would be:

1. the existing lease would have to be terminated due to one tenants death, and the security deposit returned to the legal guardians/ beneficiaries of the deceased.  New lease completed with tenant providing new security deposit.

1a. - if there is a new (additional) tenant they would have to go through new applicant screening

2. provide notice to vacate 

Looking for see if i am missing any component of the next steps in this very delicate situation.