How Do I Return Security Deposit When A Couple Breaks-Up

[Linda Share]

Hi All,

I am a buy and hold investor in Indianapolis. I have been investing and self-managing properties for several years and still come across new situations all the time.

Can anyone help me with this one…..

An unmarried couple signed a one year lease and moved into a rental together in December 2020. Shortly after they moved in they broke up. She stayed and he moved out. It got a little ugly with a lot of calls complaining that he did this/she did that. He has wanted out of the lease from the beginning though neither would pay the break lease fee.

Lease is almost up.  She wants to stay for an additional six months and would qualify (barely) without him. This would be advantageous to us as summer is a better time to lease 4-bedroom rental that’s in a good school district. She wants to roll over the security deposit for the additional six months. She claims it is hers. It was paid with a money order and she is trying to prove it came from her – I am not sure I have any documentation on this (lesson learned).

He has never mentioned the security deposit, at least so far.

If we find she paid the security deposit, it’s my understanding the refund would go to her. Is this correct?

If we can’t find evidence of who paid the deposit… Can I still roll over this deposit? Do I have to give half back to him at the end of the lease? Or write one check out in both names?

Does anyone have advice?

Thanks in advance.