Tenants Sister Applying to Move In

[Joe Arida]

Hi all,

My tenants is looking to have a roommate move in with her. I am having the new roommate go through the usual application process (background/credit checks, application form). My question revolves around the security deposit:

• When I purchased the place, my tenants security deposit was credited to me towards the purchase price.
• Since my current tenant paid the full security deposit ~10 years ago, how do I handle the new roommate moving in?
  • Can I write an addendum that ensures the original security deposit applies to both of them and have them both sign it?
    • Or maybe this is overkill?
  • Should I talk with my current tenant and see if she wants me to give her half of the original deposit back to her, then collect the other half from the new roommate?

Or maybe it is fine to just leave it the way it is, I just want to make sure I'm doing everything correctly here...

Thank you!

[Nathan Gesner]

@Dan Moore if you're automatically taking their deposit then you are doing it wrong. The deposit is for cleaning and damages above ordinary wear-and-tear. If they've rented for ten years, it's expected that the flooring, paint, and other items have exceeded their normal life expectancy and you can't / shouldn't charge the tenant for that.

@Joe Arida I use an "Add Tenant Addendum" when adding anyone else. First, they have to apply and meet my screening criteria before they move in. Then I use the Addendum to spell out that the new tenant is being added to the lease and takes full responsibility for rent, care of the property, etc. It all falls under the "joint and several liability" clause. The Addendum also makes it clear to the original tenant that the security deposit remains in place and when the lease terminates, it is refunded to all tenants and they are responsible for figuring out who gets what.

I also charge a fee for this because it's additional effort on my part to deal with the change.