The roommate who paid the deposit is breaking the lease

[Amanda Thompson]

The tenant leaving early says he's the one who paid the deposit. He's wondering when he'll get it back (he knows it is dependent on damages clean up etc). I told him not until after the lease is over, and if the lease is renewed, after that. But is he the one who gets the deposit back if he breaks the lease? I know I need to re-read their lease but I don't think it mentions this specifically.

[Joe Splitrock]

Originally posted by @Amanda Thompson:

@John Teachout one lease, 2 signatures.

 The deposit is part of the lease agreement. You return deposit to those who signed the lease. If there are two signatures, the check is written to both parties. They will both need to sign the check to cash it at the bank. They are responsible for figuring out who gets what portion of the money.

In this situation if the lease is continuing with the other roommate, you will not be returning the deposit. There is basically three option when one of the roommates leaves mid lease:

1. The leaving roommate stays on the lease until the end of the term. They stay responsible for rent, just like they lived there. 

2. You remove the leaving roommate from the lease but the other tenant stays. I would only do this if you are confident that the remaining tenant can pay rent on their own. 

3. You cancel the lease for both tenants, both move out. You negotiate lease break terms.

It sounds like you are doing option 2 which means the deposit is not returned. I would explain to the tenants, that it is their responsibility to work out the deposit. Typically the roommate who is staying will give money back to the leaving roommate. 

I had a roommate move out and the leaving tenant just gave his portion of the deposit to the remaining tenant. He did it to be nice, because he was moving out on his friend. Regardless of what they work out, it is their responsibility. 

Don't be scared if you lease doesn't spell out details like this. Just because something isn't in the lease, doesn't mean it can't be your policy. I prefer to not spell out lease break conditions, because it gives me flexibility to negotiate what I want in a given situation.