One roommate wants to move out. Both roommates are joint tenants.

Investor · Ashland, OR · Member since 2018 · 202 posts · 38 votes

I'm renting out a 2 bedroom apartment to two people. They're on the agreement as joint tenants. They had a disagreement, and now one person wants to move out, and wants half of the security deposit back ("their" portion). On the rental agreement, it's written as though they both paid the security deposit jointly, since they agreed to rent out this apartment together.

The other person wants to stay and find a new roommate.

What should I do in this situation? Do they both need to move out before I return the security deposit? Should I just do a walk-through and return the moving tenant half of the security deposit minus deductions?

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Mike Dymski

Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes

I got tired of roommate breakups; so, I started requiring each resident to qualify on their own and that eliminated these issues. It narrowed my possible resident pool but that did not matter based on demand.

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
4y
If the other can find a roommate that passes your screening criteria (and the original one who is staying has been a good tenant), then entertain the idea. But I'd also give both of them the option of breaking the lease with whatever penalty is stated in the current lease.
Do not return any of the deposit right now. Do an inspection, but only return the portion that remains after you have the money from the new tenant and get all three parties to sign a document outlining that the roommate who is leaving has received his half of the deposit minus $X for (list repairs) and you received half of the deposit from the new tenant.
Honestly the easiest would be for them all to move out and you find new tenants.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
Less experienced landlords don't believe me, but roommate situations are much higher risk than a married couple or blood relatives. It is extremely common for two or three people to rent a place together, then someone starts a relationship, loses or gains a job, or they have a falling out and one of them wants to leave.

The security deposit stays put until The lease is terminated. If 10 and A wants to leave and get half of his deposit back, then he should collect it from 10B. If they have a dispute, that is a civil issue between the two of them and does not involve you. The deposit is tied to the lease.

If you let this tenant go and then let the remaining tenant look for a new roommate, you just create a revolving door. There is a risk that either you or the remaining tenant will get desperate to put a new tenant in the apartment, standards will be lowered, and more problems will ensue. The best option is to tell them they qualified together, so they have to leave together.
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Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
4y
I got tired of roommate breakups; so, I started requiring each resident to qualify on their own and that eliminated these issues. It narrowed my possible resident pool but that did not matter based on demand.
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Scott M.
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
4y
While your question focuses on the SD can the remaining tenant actually afford to stay? Your use of the word "joint" makes me think you qualified them as a pair (otherwise known as a no no) vs individually. If the remaining tenant can't afford the place then you need them both to leave.
If you decide not to do that, the SD should stay through the term of the lease. If you extend or it goes M2M it stays until the last party moves out. The leaving tenant should look to the remaining tenant to get reimbursed not you.
But you should let them both go and start over.
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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
4y
@Ellie Narie No. Have them present you with a new roommate for screening and approval and then amend the lease. The security deposit division is between them, it stays with the property. The new roommate can remimburse the leaving roommate or the staying roommate can reimburse the leaving roommate but it is their issue. I usually have a termination agreement for the leaving roommate. It says no security deposit or refunds are due to them and the lease of xyz date is terminated.
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Ellie Narie
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Investor · Ashland, OR · Member since 2018 · 202 posts · 38 votes
4y
Originally posted by @Colleen F.:
@Ellie Narie No. Have them present you with a new roommate for screening and approval and then amend the lease. The security deposit division is between them, it stays with the property. The new roommate can remimburse the leaving roommate or the staying roommate can reimburse the leaving roommate but it is their issue. I usually have a termination agreement for the leaving roommate. It says no security deposit or refunds are due to them and the lease of xyz date is terminated.

Do you do a walk-through inspection of the apartment, even if it's still occupied by one roommate? Or do you just have the new roommate pay the moving-out roommate the deposit, without any sort of walk-through? In this case, the new roommate would be responsible for any damage caused by the old roommate, I assume.
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Julie Hartman
Property Manager · Denver, CO · Member since 2021 · 667 posts · 587 votes
4y
@Ellie Narie When we have this situation arise, we tell the tenants the deposit stays with the property so they need to work it out amongst themselves. We also don't remove the outgoing tenant from the lease until we know the remaining roommates can handle the rent without the other person. We offer them the option of doing an inspection of the out-going tenants room/space and all must sign off since the remaining roommates are now responsible for the property condition going forward. We also charge them for this "off schedule" inspection. Then once that dust settles, if they want to find a new roommate to help with rent, that person must submit an application and be approved prior to moving-in. Then we execute a "Roommate Addendum" to finalizing everything, instead of drawing up a whole new lease.
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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
4y
@Ellie Narie I just tell them that all damages are deducted at vacancy of all parties. If they want an inspection or there is known damage by the roommate I can bill it now. I will not deduct from the sd.
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Ellie Narie
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Investor · Ashland, OR · Member since 2018 · 202 posts · 38 votes
4y
Originally posted by @Colleen F.:
@Ellie Narie I just tell them that all damages are deducted at vacancy of all parties. If they want an inspection or there is known damage by the roommate I can bill it now. I will not deduct from the sd.

What do you usually do about the rental agreement? Do you add an addendum to the agreement that states who is added and who is removed? Or do you have all the new roommates sign a new rental agreement together (along with the roommate who is staying)?
If I have the new roommate pay the security deposit to the old roommate, do I need to get this in writing somehow? Or is it between the roommates?

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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
4y
@Ellie Narie I do an addendum replacing the names and making no change to dates and other conditions. I would only do a new lease if I have a reason for using different terms. I tell them the security deposit is between them, they can do what they want. All parties sign the addendum even the one agreeing to leave. If I can 't get the leaving party or they leave and the others take over the payment without putting someone else in place I have used a separate agreement. I mail this to them stating that upon signing and return they are released and have no claims on the property or sd. This is something I do when you can't get contact with the person leaving.
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