Q: What do I do about the deposit a tenant paid..he's leaving and his (newer) roommate is staying.
The first tenant quit his job and hasn't found another, so he's moving out because he can't pay his rent. He didn't pay January's rent and is moving at the end of the month and would like his deposit. That leaves his roommate who didn't pay a deposit. I understand we can keep the deposit to cover unpaid rent in Oregon (he actually owes just under 2 months' rent.) We feel sorry for him, but aren't sure how to handle this.
We could just give his deposit back so he has a little money, but we know that's not good business. Or we can tell him we're keeping the deposit to partially pay for unpaid rent (and feel like we're hard-hearted). What about the other tenant, who now won't have a deposit?
A: You simply haven't provided enough information to be able to meaningfully comment. IF both tenants are on the same rental agreement, then the deposit most likely (subject to the actual language in the rental agreement) covers both tenants and is refundable normally only when the last of the tenants leaves. Then again, if they both are on the same rental agreement, when one breaks the agreement by moving out, it normally breaks the agreement for the second tenant as well. If the second wishes to stay, normally he would need to sign a new rental agreement and pay a new security deposit. You can do what you wish of course but the security deposit is likely to be the only payment you will ever get from the ex-tenant and it sounds as if he already owes you more than the deposit amount. Was he on a month to month or fixed term lease agreement? If fixed term, he presumably has on-going liability to you for rent. If on a month to month, if he has not provided you a written 30 day notice of termination, he likely owes you an additional 30 days rent on top of everything else. If you waive that debt, you are compromising and helping him that much but compromise should be just that - something given up by each side, NOT just be you. If he quit before securing a replacement job, it is hard to have a lot of sympathy for his not being able to pay his bills. What did he think was going to happen? And why should you be the one to pay for his choices?
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