2 of 3 Tenants Exiting Rental

[clm8328j]

What is the name of your state? Austin, TX

I was one of 3 people that signed a lease with a property management company. When the original lease expired, 2 of the three of us indicated that we would not be able to sign a lengthy extension as we were likely to move. One indicated that he wanted to remain.

The property manager sent out an extension with all three names on it for a full term extension. The 3rd roommate signed the agreement.

The property manager began charging us the new rate at that time.

2 of us did not sign and turned in a 30 day notice that we were leaving.

The property manager is now telling the 2 of us that left that we should collect our deposit from the roommate that is remaining. The position of the remaining roommate is that he did not collect a deposit from us and it is the property manager that owes us the refund. I agree, and have indicated to the property manager that they should refund the deposit to those that have left and settle up and have a new agreement with those that wish to continue in the space.

Questions: Can the property manager hold the deposit of those that have left? If so, what happens when he creates a new agreement with a new renter?

Thanks,

Chuck

 

[adjusterjack]

The property manager is correct to hold the deposit until all three of the original signers have moved out and surrendered the property.

This is just one of the problems with roommate arrangements.

The three of you were jointly and severally liable under the original lease. The landlord collected a single deposit from basically an "entity" that consisted of the three of you.

He is only obligated to return the deposit when that "entity" (the three of you) is out. And then he writes a check made out to 3 names.

The lesson here is that you should have had something in writing between the three of you as to how the deposit would be handled under a variety of circumstances.

The roommate is also correct. He doesn't have to return your contributions. The next tenant(s) that move in should be giving you their shares (good luck with that) and when all three of them move out, they get the deposit back.

You could wait years to get your deposit back and may never get it.

If you don't want this to happen again either don't live with roommates or write up a contract between the roommates before you move in together.

 

[clm8328j]

I get that - makes sense.

Now - if he creates a new agreement that does not include those of us that have left (i.e. either with the remaining roommate or with a new tenant), that would in effect cancel the contract that I was a part of - necessitating the return of our deposit, correct?

 

[adjusterjack]

Yes, but from who? If the remaining roommate leaves, the LL should be issuing the deposit refund to the three of you.

If the remaining roommate stays by himself without taking on any new roommates then he owes the departing roommates their share of the deposit.

If the remaining roommate takes on two roommates to replace the two of you he should be collecting two thirds of the deposit and giving it to the original departed roommates because the LL still has the full deposit and he should be refunding it to the new group when the new group eventually moves out.

Unfortunately, if you can't get anybody to agree to that (as is often the case) you'll need to sue either the remaining roommate or the LL or both, depending on how the scenarios play out.

 

[FarmerJ]

When a tenant is moving out before a lease is over and has found a replacement to replace them I get it that a new replacement should pay deposit funds to the one moving out and document the condition of the space they move into for their own records . BUT Ive come to wonder at times if this concept is truly fair when applied to roommates who meet their lease obligation and one of the original roommates stays on. OP if you can find a tenants rights advocacy group in one of the larger cities in your state I suggest you ask them about this since the LL has entered into a new lease with one remaining roommate .

 

[xylene]

The three of you were jointly and severally liable under the original lease. The landlord collected a single deposit from basically an "entity" that consisted of the three of you.

He is only obligated to return the deposit when that "entity" (the three of you) is out. And then he writes a check made out to 3 names

You have read the OP's lease?

Bluntly, absent more specifics, I think the landlord is right and the remaining tenant owes the departing one the money. Well technically the landlord owes the departing tenants the money and the remaining tenant owes the landlord the balance of security...

If the landlord did not want the deposit seperated, than he should NEVER have allowed the hold over of the lease with unsigned parties.

 

[FarmerJ]

Xylene another issue I see is that with the new lease the LL should be documenting the entire units condition but on separate list , bedroom A Bedroom B bedroom C then document the kitchen / living room, laundry , basement , shared bathroom and do proper deposit dispositions and start all over with the tenant on the new right now and later on. I have to wonder if this housing is near a college - university ?