How to deal with leases

Question

Hello I have a question regarding a lease.

I have 3 people currently on a lease that is up in August.   (6 months left) One of these people wants to move out (as her relationship with one of the others has ended).

I don’t know how this works.  I have experienced it my own life where the other roommate was completely happy taking over the lease and removing me off of it.

In this scenario the other two tenants don’t want to take over the lease and remove her off of it as it would obviously result in their having to “cover” a higher rent…and they do not have someone who can replace her.

What is the best way to proceed with this?

Nicole Heasley Beitenman · Answer

They all signed a legally binding contract making them responsible for the rent. If someone wants to move out, let them know they're off the hook once they find a new tenant and that new tenant gets your stamp of approval. Amend your lease to document this process moving forward so all parties know what to expect when this situation arises in the future.

Kenny Dahill · Answer

@Justin Heitter, sounds like legally they're all on one lease.  Therefore, this is the Tenants responsibility to figure out but they are all legally on the hook for making full payment.  Here's a few thoughts:

• Amend Lease:  If the tenants wish for the ex-roommate to be off the lease, you need to amend the current lease.  You may keep all the same terms (i.e. rent, end date, etc.) but indicate the removal of roommate.  This only removes the obligation for the ex-roommate but the remaining tenants are still obligated to pay full rent amount.
• Ex-Roommate Pays:  Legally, anybody on the lease is still responsible to satisfy that full rent amount is paid each month.  Regardless where they live.  This might require the ex-roommate continuing to pay rent until they find a replacement.  Ultimately this is the responsibility of the tenants to figure out.
• Remaining Tenants, Re-Qualify:  For the amended lease, it's important to note if the remaining tenants still qualify for the lease.  Let's say you required 3x rent:income but now they fall under that ratio.
• Add Roommate, Qualify:  If they decide to add another roommate to offset the increased rent, that new roommate is required to a) qualify and b) be added to the lease.  They can't just invite any friend, that new roommate needs to go through the proper channels and be screened.
• Assualt / Threat:  If the tenants indicated the ex-roommate was abusive or threatening, do your best to resolve this situation quickly.  Not only might there be risk to you, but it's also the right thing to do.  Some states have laws to protect victims which allows them to move out without penalty.

Andy Webb · Answer

Did you do the lease up yourself or work with a leasing agent/realtor?  I ask because from a documentation perspective, at least here in Texas, there is an Association of Realtors amendment available that all parties have to sign, which among other things releases the outgoing tenant from responsibility, and assigns the security deposit to the remaining tenants (e.g. I do not have to consider the exiting tenant later when I issue the security deposit refund).  You might see what your leasing agent has available in your state.

In our case, with the amendment, at a minimum everyone in the property has to agree with the early exit of one tenant, and all parties have to sign....so to your question and in this scenario, they would all have to agree to this change.  And until everyone is willing to sign said amendment or similar, I would not remove that other tenant.

The language concerning the security deposit is helpful: the outgoing tenant releases those funds to the remaining ones...so in essence they are paying a portion of that deposit to them for the early exit, if that makes sense.  Enough in your case to offset 6 months...probably not, but you might look at that as a potential carrot for the 2 that are remaining in place.  Of course, that assumes they will even receive any of the deposit back...