Do Roommates Get Their Proportion of the Security Deposit When One Leaves?

When one roommate decides to end their tenancy and get their name off an apartment lease, the question often arises: Does that roommate get a portion of the security deposit back? This article explores the typical practice and legal considerations involved in this scenario.

The Process Professional Landlords Follow

For most professional landlords, the answer to this question is a clear no. However, the situation can be complex. Landlords generally adhere to specific procedures to ensure a fair and orderly transition when one tenant wishes to leave:

1. Valid Reason for Leaving

Typically, a roommate wants to be removed from the lease because they are moving out. As a responsible landlord, it's crucial to ensure that this move is stipulated within the mutual agreement of all tenants living in the property. Every individual over 18 living in the property is required to be on the lease for legal and protective reasons. If one roommate is moving out, they must vacate the property, and the remaining tenants must be in agreement to continue the lease.

The Steps Involved

1. Verification and Agreement:

The landlord verifies the agreement among the remaining tenants to omit one roommate from the lease. For example, if Arthur wants to move out, Bart, Charlie, and Donnie must be in agreement. If all four tenants are in consensus, a new lease must be drafted.

2. Issuance of a New Lease:

A new lease is prepared, reflecting the updated rental agreement. This new lease will either include just Bart and Charlie, or it might include Donnie to replace Arthur, ensuring all parties are in agreement. The new lease is then signed by the remaining tenants and the landlord.

3. Security Deposit Distribution:

Upon completion of the new lease, the landlord issues a check for the entire security deposit to all tenants involved, i.e., Arthur, Bart, Charlie, and Donnie (if applicable). It's noteworthy that the tenants, not the landlord, handle the distribution of the security deposit. The landlords do not get involved in the splitting of the deposit among the tenants. This ensures that there is no bias or favoritism.

4. Reinvestment of the Deposit:

Once the tenants agree to the new lease, the check is either cashed by Arthur, Bart, and Charlie or kept for reinvestment in the apartment as a new security deposit. If Donnie is added, his portion is also deposited. The remaining tenants contribute to the remaining amount.

Landlord’s Perspective

From a landlord's standpoint, they believe in treating the security deposit as a collective financial responsibility, regardless of the number of tenants involved. This approach minimizes conflicts and legal issues. It's important for tenants to resolve any disputes among themselves about the distribution of the security deposit.

Conclusion

The process of removing a roommate from the lease and handling the security deposit involves several steps. While one roommate may not receive their proportion of the security deposit, the landlord ensures a fair and transparent process. Landlords treat the property's security deposit as a collective responsibility, avoiding personal interference in the tenants' affairs.

Understanding these steps and procedures can help tenants navigate the transition smoothly and avoid potential disputes.