What is the name of your state? North Carolina.
I am a landlord , renting a house that has three tenants. The lease is one year, with annual renewal, if tenants hold over beyond initial term (August1, 2007 to July 31, 2008)
The tenants are all listed on the Lease and all pay their rent in equal portions (thirds) They paid the security/ cleaning deposit as a lump sum, with the understanding it would be returned as a lump sum to all three within 30 days upon termination at the time the of "move-out", less any sums retained for damage/ cleaning.
The house was entirely vacant upon move-in and a very extensive move-in form was completed by myself and one of the tenants, that was representing the other two.
I was notified last PM that one tenant will be leaving a the end of the initial term, two will be staying on and the tenant moving has found what will probably be a "replacement" tenant for herself. Now, here is where I am having the Problems/Questions.
Since the property will not be vacated by ALL the tenants, how do I determine how to return, what portion of the security deposit to the leaving tenant? This is an environment that would keep changing. On trips to the house some damage has been noted. The intention was for it to be repaired after "ALL" tenants have left. A total amount returned to ALL would be given in a lump sum (as recieved), less damage repair costs.
Also, the new tenant moving in would NOT be responsible the damage already noted.
I had thought about a new move-in inspection that would only apply to the new tenant. The damage would be noted, etc. But as I said before the house was vacant when first inspected, and now filled with furniture, who knows what is lurking in hidden places?
Also, the other problem is the first two tenants staying on would actually be in a "renewal" term, I have decided on that to probably just do a new Lease, with no changes (ie. rent increases) and remove the tenants name that is leaving, and replace it with the new tenants name.
The biggest problem is how to solve this security deposit issue, I am totally perplexed on what to do. The lease does not allow assignment/ subletting by the tenants. Since the situation will keep changing, I feel the need to hold the full amount of the security until "ALL" tenants have left, as one cannot predict future damages. HELP!