1 of 2 tenants wants out of lease

[Andron Wright]

I have a couple that lives in one of my rentals. Things aren't working out b/t them and one of them wants out of the lease. Should I allow this if the other tenant agrees to it? Their rent is already paid in full for the length of the lease..so no worries there.

[Jon Holdman]

If one wants off the lease, treat it as a move out, then a new tenant. Does the remaining tenant qualify alone? Can that tenant provide the security deposit? You would prefer not to let the one tenant off the hook because that's one less person to go after if there's a problem in the end. Certainly do not give this one tenant half the security deposit. Ideally, you would do a walkthrough, make your deductions, then give them a check for whatever is left made out to "tenant 1 and tenant 2". Then, the remaining tenant give you a new security deposit for the full amount. Realistically, if the moving tenant thinks they should get some money, they should get it from the staying tenant. Then either get something in writing from that tenant saying the entire security deposit belongs to the staying tenant, or, when the last one leaves, send the check out to "tenant 1 and tenant 2".