Location: Missouri
I have a rental property in Missouri and a situation where two tenants jointly signed a lease for my rental property. One tenant wants to break the lease, while the other wants to stay. I explained that the remaining tenant would be responsible for the full rent, which they have agreed to.
The tenant breaking the lease suggested that the remaining tenant sublet the extra room to help cover the increased rent, but my lease explicitly prohibits subletting. Additionally, the departing tenant expects the remaining tenant to refund their portion of the security deposit. However, this doesn’t seem reasonable to me—if anything, I would think the tenant staying should be entitled to it.
What are my options in this situation? I am concerned that the remaining tenant does not make enough to cover the full rent if anything unexpected costs come up. Should I let the other tenant break the lease without repercussions since the other is willing to assume full responsibility?
Any advice is greatly appreciated!
Comments
This is more a business question for your risk tolerance than legal question. Right now you have two people you can pursue jointly or severably for unpaid rent, if you do this you only have one. You have no legal obligation to allow one tenant in a joint tenancy break the lease, even if that tenant decides to physically leave the residence, they’re still beholden to the lease.
You owe the security deposit to either tenant within 30 days of their lease ending. To you they’re one legal entity, how they deal with that between themselves is not your issue.
It really is a matter of how flexible you want to be and how much risk you are comfortable assuming.
If they jointly signed the lease, then even if one person no longer lives there, they would both still be on the lease. One person cannot just “break” the lease while the other person upholds the lease. Regardless of who is actually living there, both people on the lease are legally responsible for the rent being paid and that they are abiding by any requirements within the lease, unless you were to release them for the lease. You do not have to allow them to sublet, and you can hold them accountable for violating the lease if they pursue that. Just because one person wants out doesn’t make the lease flexible.
The departing tenant wanting a refund from the remaining tenant is on them to work out, not you.
Edit- Business wise you’re almost certainly better off keeping both of them on the lease or making them go through the process of formally breaking the lease and getting your early termination fee or whatever is in your lease. Also if both are on the lease, you can hold both of them responsible if the one remaining tenant cannot pay. I get it seems unfair to go after someone financially who is no longer living in your property, but legally you are well within your rights to.