1 person (of 4) leaving the lease

General Landlording & Rental Properties
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1 person (of 4) leaving the lease

Jim Robertson
Investor · Austin, TX · Member since 2014 · 102 posts · 41 votes

I have a house being rented out to 4 individuals. All 4 are on the lease. 1 of the individuals is leaving town and asking for documentation that they are no longer held to the lease. I'm fine with letting this individual out of the lease since the remaining 3 tenants are are fine to continue the lease and pay rent. What type of documentation do I need to provide the person leaving? This individual states that they need proof of not being held to the lease to get a new apartment. 

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  • Jacob Sampson
    Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes
    5y

    I would just start a whole new lease with only the current three tenants on it.  In addition just send a letter saying you are no longer on the lease.  The other question I would have is how is the deposit going to be handled?  Are you giving that person their portion of the deposit back and the other 3 will give you that amount back or is the person leaving just giving up their portion of the deposit.

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  • Dick RosenPro Member
    Property Manager · Gilbert, AZ · Member since 2009 · 1k+ posts · 451 votes
    5y

    Assuming that the other tenants that are staying can or have qualified by themselves I would simply write an addendum that releases the exiting tenant. Be sure to include that the Security Deposit stays with the original lease and you won't be disbursing it until the last tenant moves out. All 4 tenants must agree and sign the addendum.

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  • Account Closed
    Property Manager · Milwaukee, WI · Member since 2019 · 21 posts · 9 votes
    5y

    What does the current lease structure look like? How will the loss of net household income effect on time rent payments? I work for a property management company in Milwaukee, Wisconsin and we experience this situation frequently. If the net income is still above 3x the current rent rate, this would be ideal, wouldnt you agree? Feel free to DM me or respond here

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    5y

    Plan for worse-case scenario: eviction.

    An eviction judge may have a difficult following a marked up lease or a lease addendum. So, a new lease would avoid that.

    Just be careful on the security deposit and if the remaining 3 qualify.

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