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Updated almost 8 years ago, 01/06/2017

User Stats

23
Posts
5
Votes
Ed Brady
  • Investor
  • Delaware, OH
5
Votes |
23
Posts

Tenants parting ways

Ed Brady
  • Investor
  • Delaware, OH
Posted

I have a couple who I rented to back in November.   They both passed screening well and were looking to get out on their own and live together.    During screening, I found out they had no rental history, but everything else looked good.  As such, I decided to do a month to month lease in case any big issues came up.

I received a call from the male tenant, indicating that he wanted to move out by the end of the month as things we not working out between him and his girlfriend.  He is OK with forfeiting the Security deposit and letting his Girlfriend have it and she wants to continue living in the apartment.

I told him, that I can do that but she will need to sign a new month to month lease or lease addendum that removes his name and that he would be responsible for the apartment until the end of the month.

He called today and asking if there were some document that I could provide that they both could sign that would indicate that he was forfeiting the security deposit and she would be responsible for the state of the apartment and any damages when she moved out.  He want to move out this weekend and is concerned about the remainder of the month the lease is good for.    

What do you think is the best way to handle this?

Ed

User Stats

308
Posts
144
Votes
Travis Beehler
  • Rental Property Investor
  • Vancouver, WA
144
Votes |
308
Posts
Travis Beehler
  • Rental Property Investor
  • Vancouver, WA
Replied

I think if they've got a plan together and you're ok with it, a simple one page document signed and/or notarized saying he's leaving and she's staying and taking responsibility would do just fine.  It doesn't have to be "official", just something you type up in Word or something like that.

User Stats

2,596
Posts
2,082
Votes
Kim Meredith Hampton
Agent
  • Real Estate Broker
  • St Petersburg & Orlando
2,082
Votes |
2,596
Posts
Kim Meredith Hampton
Agent
  • Real Estate Broker
  • St Petersburg & Orlando
Replied

@ed 

@Ed Brady I just do what's called a "Roommate Release Form". It basically states that tenant X is vacating X, and tenant Y will be responsible for the lease. Tenant X also agrees that the deposit stays with the property until All tenants have vacated. It is up to the two of them what they work out with the deposit/money side of the equation 

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User Stats

23
Posts
5
Votes
Ed Brady
  • Investor
  • Delaware, OH
5
Votes |
23
Posts
Ed Brady
  • Investor
  • Delaware, OH
Replied

@Travis Beehler  Thanks, I think I am just going to go this route, but send it for electronic signatures thru Docusign. (I am currently unable to make it to the apartment see them sign it in person.

@kim 

@Kim Meredith Hampton  Thanks Kim,  do you have a copy of one you have used in the past?    I decided to go the lease addendum route, but going that route may prove to be overkill on my side. 

Thanks!

Ed

User Stats

126
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47
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Lois Ginter
  • Rockford, IL
47
Votes |
126
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Lois Ginter
  • Rockford, IL
Replied

Does the remaining tenant income qualify?  Tenants I inherited were always splitting up, and he finally moved out in September.  She does not make enough to even cover the rent, but assured me she would get a better job, etc.   She said on 12-1 that she would move out by the end of the month because she didn't have the rent, so I agreed she could use her security deposit to pay December.  Checked in with her a few times, and she was still planning on moving.  Right after Christmas, I ask her about returning the keys, and she announces she has no place to go and is not leaving.  No mention of what she can pay.  I filed five day notice on 1-2 for December rent, and said if she was not out by next week, I'm filing for eviction.  She is livid that I would evict her, and is planning on not leaving next week.  She now claims the BF is still responsible of half of the rent, and I need to go after him. BTW the old BF was paying the utilities after he moved out because she is in arrears with the gas and electric company, and they won't connect her on a new residence.  From now on, my lease states that a remaining tenant must re-qualify if one moves out.  

User Stats

1,675
Posts
839
Votes
Jim Adrian
  • Architect
  • Papillion, NE
839
Votes |
1,675
Posts
Jim Adrian
  • Architect
  • Papillion, NE
Replied

Verify she qualifie s on her own, if not both can leave.

User Stats

23
Posts
5
Votes
Ed Brady
  • Investor
  • Delaware, OH
5
Votes |
23
Posts
Ed Brady
  • Investor
  • Delaware, OH
Replied

Yes, I screened them both when moving in, both qualified individually with regards to income, so fingers crossed there...

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7,340
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10,044
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Mindy Jensen
Pro Member
  • BiggerPockets Money Podcast Host
  • Longmont, CO
10,044
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7,340
Posts
Mindy Jensen
Pro Member
  • BiggerPockets Money Podcast Host
  • Longmont, CO
ModeratorReplied

@Ed Brady, it seems like they are amicable in their split, she qualifies, and I completely agree with @Travis Beehler that a simple document they both sign stating he forfeits the deposit and she is now 100% responsible for any damages will suffice. 

Since they're worked it out themselves, it probably won't be an issue when her lease ends, but keep that document for reference. 

User Stats

308
Posts
144
Votes
Travis Beehler
  • Rental Property Investor
  • Vancouver, WA
144
Votes |
308
Posts
Travis Beehler
  • Rental Property Investor
  • Vancouver, WA
Replied
Originally posted by @Mindy Jensen:

@Ed Brady, it seems like they are amicable in their split, she qualifies, and I completely agree with @Travis Beehler that a simple document they both sign stating he forfeits the deposit and she is now 100% responsible for any damages will suffice. 

Since they're worked it out themselves, it probably won't be an issue when her lease ends, but keep that document for reference. 

 Hooray!  I'm helpful! :)  Ha!  Have a good day!