How to handle one tenant moving out (both tenants are great)

[Chris Billington]

We are nearing the end of our second year with two tenants who rent a condo here in Denver. Both individuals have been model tenants. One bought a house and is moving and the other wants to stay. Lease is about to be up in the next 2 months. The tenant who is staying wants to bring in a friend to take the others place. Obviously I will run a background to ensure the new tenant qualifies. My question is how do you guys handle the original security deposit. I think the security deposit needs to stay where it is and the new tenant should work something out with the departing tenant, but would like to hear some opinions.