One tenant voluntarily leaves, documentation needed?

Question

I have a tenant that moved out on their own. No issues with remaining tenants and they’re still able to cover the rent. I know screening for a replacement tenant is a must, but I’m wondering if there’s any documentation needed to show the tenant has moved out?

Patricia Steiner · Answer

Please take a look at this article: https://www.nolo.com/legal-enc...
If the departed tenant is still on the lease and the remaining tenants are covering the rent, your right to a replacement tenant may not be your decision. If the property was leased by all tenants and one leaves, the tenants are all jointly and severely liable for the rent and they have the right to use the property as though no one/no changes have taken place.

Great job on choosing tenants who understand their obligation to pay the full rent regardless of who might depart from their group.  Hope this helps.

Nathan Gesner · Answer

John and Bill move in together. John pays the deposit.

Six months later, John decides to move out and wants to get his deposit back. However, the deposit is tied to the lease, not to the individual. John needs to get the money from Bill. If Bill refuses to pay it, that's a civil matter between them and you shouldn't get involved.

When the lease is up, the deposit is refunded to the Tenants on the lease. In this case, Bill is the only remaining Tenant and the money goes to him. He has to decide whether he will return it to John. That is between them and you shouldn't get involved.

This is why my "Remove Tenant Addendum" is very clear about what happens with the deposit, and it's signed by both parties. If John wants his share of the deposit back when he leaves, he needs to get it from Bill. Once John is removed from the lease, the deposit no longer belongs to him.

Kevin Sobilo · Answer

@Alex Hohenstein, I assume these are roommates on one lease and not a renting by the room situation where you have a separate agreement with each tenant.

If these are roommates, the tenant that left is still responsible for rent. So, if the remaining roommates don't pay, you still need to evict/sue all the tenants including the one that left. Also, the tenant that left could move back in tomorrow! They are still a tenant on the lease after all. Just because they move out doesn't mean anything has materially changed.

Given that, it sounds like the remaining roommates are willing and able to keep the place without the tenant that left and that you are also ok with that situation right now.

So, I would get them ALL to either sign an addendum simply removing the one tenant from the lease OR sign to terminate the old lease and start a new one with the 2 remaining tenants. Either way, I would also have them sign stating whats to be done with the deposit. The tenant that left might want to claim they are due part of the deposit. So, make sure anything they sign accounts for how the deposit is to be handled.

If at some point they find a roommate they want to add, just do a background check and do the same process over to add the new tenant. Income verification isn't really necessary since the existing tenants already can afford the place, but you can do an income verification if you like.

Julie Clark · Answer

@Nathan Gesner In your answer above. I am wondering based on your verbiage that the deposit stays in place and anything owed to them is to be worked out between them and the remaining tenants. When the remaining tenants do move out who do you return any remaining security deposit to?I have this currently in an addendum to a lease where one person moved out and the other stayed. The person who moved out is the person who actually sent the deposit at the beginning. They are now asking about it and how it will be handled. What would your repsonse be in this situation having that verbiage in the addendum?

Nathan Gesner · Answer

I have an addendum to remove a tenant. It states when they are leaving, that they are giving up all rights to the rental, that the deposit stays in place and anything owed to them is to be worked out between them and the remaining tenant(s), and the remaining tenants are accepting all responsibility for the rental. Connect and send me a request and I'll be happy to share it.

When adding a tenant, I screen them and then make them sign the existing lease.

Any time I make any adjustment to the lease, I charge a $50 fee for my time.

One tenant voluntarily leaves, documentation needed?

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