As your lease renewal has been confirmed with some tenants staying, others moving out, and potentially new tenants joining, we want to provide clear guidance on how to handle the security deposit, last month’s rent (if applicable), and responsibility for any damages during this transition.

 

🔁 Security Deposit Handling:

 

Because this lease is renewing with changes in occupants, we treat this as a continuation of the existing lease, not a brand-new lease. Therefore, we do not perform move-out inspections and do not process any security deposit refunds directly to tenants who are moving out.

Instead:

  • Departing tenants should receive their share of the security deposit directly from the staying and/or incoming tenants.
  • New tenants must pay their share of the security deposit to the departing tenants, not to the property management company.
  • If no new tenants are moving in, then remaining tenants are responsible for buying out the departing tenants’ portions.

Please note: We do not keep records of each tenant’s share of the deposit. It is your responsibility as a group to determine and manage the proper distribution.

 

🛠️ Reporting Damages Before Turnover

 

This is also the appropriate time for staying tenants to report any damage caused by departing roommates. If you believe certain damages should be attributed to someone moving out:

  • Notify us before the new lease begins.
  • If the damage is confirmed, we will document the issue and withhold the appropriate amount from the security deposit to cover the repair.
  • In this case, the departing tenant(s) will receive their share of the security deposit minus their portion of the deducted amount.
  • After this internal transfer is completed, the property management company will continue to hold the full original security deposit amount for the unit going forward.

This ensures that new or staying tenants are not held responsible for those damages when they eventually move out.

 

🕵️ Optional Mid-Term Inspection

 

If you would like us to perform an inspection instead, we offer an optional mid-term inspection at a cost of $120, which will be charged to the rent roll. Please note:

  • Given the presence of tenants’ personal belongings, we cannot guarantee that all areas can be fully inspected.
  • The inspection focuses on identifying obvious and reportable damage, not routine maintenance.

 

We hope this explanation helps clarify how lease renewals with roommate changes are handled. If you have any questions about your lease renewal, deposit arrangements, or inspections, please feel free to reach out.