Monday, June 16, 2008

Cohabitants Should All Be On One Lease

Typically, we advise against separate rental agreements with each resident. The better practice is to have all original adult tenants sign one lease agreement, submit a single security deposit and pay rent with a single check. This will help alleviate confusion regarding the return of the security deposit when the tenancy terminates.
Advise your tenants the security deposit will be returned to them when the unit is returned to you VACANT of all tenants (regardless of type - roommates, subtenants, guests, uninvited guests). The tenancy does not end until everyone is gone.
If you allow certain tenants to depart and terminate their relationship with you, but others remain, you end up with a complicated legal situation and you will have voided language in your lease making all tenants jointly and severally liable. By following the strict rule that no deposits are refunded until the tenancy (in its entirety) is terminated you will avoid the problem of what to do with the deposit should tenant B depart and be replaced by tenant D.
Due to the complexity of subleases in rent control jurisdictions and in California in general, our office recommends that all owners seek the advice of an experienced property manager or legal counsel when dealing with subleases. We certainly can provide this expertise. Give us a call.
As Always, Ms. Merrie