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Multiple Tenants... One Security Deposit

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ws6whiteshark

Member
Maryland

I currently have 5 tenants in a 5 bedroom house and their lease will expire in August of this year. One of the tenants will be going away to college and wishes to move at the end of August. When the tenants first moved in they all signed the current lease and provided a $2100 security deposit (SD). Does the tenant get her balance of the SD from the other four tenants or would I refund her and then collect what her balance was from the remaining tenants who all have expressed an interest in signing another 1 year lease?

Since the SD was $2100, I want to make sure that I keep that much as the SD for the second year.

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JETX

Senior Member
Don't do ANYTHING until all the tenants agree on how to handle the deposit disbursement and provide a SIGNED 'procedure' to you. I suggest you request them to do so NOW.
 
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Cvillecpm

Senior Member
She gets her deposit from the replacement tenant for her room....since all tenants are jointly and severally liable on one lease, the deposit you hold stays intact until the property is entirely vacated and then you make deposit check payable to ALL remaining tenants. You should have this understanding in your lease.
 
J

JETX

Senior Member
Cvillecpm said:
She gets her deposit from the replacement tenant for her room....since all tenants are jointly and severally liable on one lease, the deposit you hold stays intact until the property is entirely vacated and then you make deposit check payable to ALL remaining tenants. You should have this understanding in your lease.
Click to expand...
According to the ORIGINAL post, the lease for all five tenants ends at the end of August (when the departing tenant is set to leave). If that is the case, let that lease end on its own and return the deposit to ALL tenants (as I advised earlier)... and have the five 'new' tenants re-enter another lease with new deposits. At the time you create the new lease... make sure to include instructions on how that deposit will be disbursed at the end of ITS term.
 
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