Lease take over (apartment complex, tenant, negotiation, security deposit)

[Teebyrd86]

So my apartment complex says one way of getting out of the lease is a lease transfer. My question is: is it standard procedure to give your security deposits away with the lease transfer or request it back? The complex manager said he has seen people do both. We have a hot deal and whoever takes over inherits that deal. We pay $250 less than market rate and only have 4.5 months left on the lease. We’ve only been here 7.5 months and it was brand new when we moved in. We have kept it immaculate. I’m just curious what people that are taking over leases expect?

Thanks for the feedback..

[Steve19605]

Actually that is nice that a complex allows you to move and have someone take over your lease. Vast majority would not or charge a large fee equal to a month or two rent.

To answer your question. It would depend on motivation. How bad do you need to move. Most people expect to have to pay a deposit. So you should try it that way. If you have a hard time finding someone. Then you could try offering a discount. Such as paying the deposit for new tenant.

Actually it would be better marketing to offer first month free rent. Pay the first month free instead of the deposit. Tenant pay your the deposit to reimburse you for your deposit. Then allow your deposit to transfer to the new tenant.

What manager is saying is. It depends on what you and new tenant need to work out to make this happen.

[adjusterjack]

Originally Posted by Teebyrd86

I’m just curious what people that are taking over leases expect?

A better question is what will management want when you do find a replacement?

Better find out so you won't be unpleasantly surprised when it happens.

[Steve19605]

Originally Posted by adjusterjack

A better question is what will management want when you do find a replacement?

Better find out so you won't be unpleasantly surprised when it happens.

Yes good idea.

Find out if they charge a early lease termination or transfer fee. If it is a very good deal on rent. Like you say. New tenant maybe willing to pay part of it.

[Rabrrita]

We are in California and use what's called a non-mitigating lease. As a condition of being able to impose full-term non mitigation leasing, we must by law offer two conditions. Tenants must have the right to sub-lease or assign their lease, both with specific approval standards on out part. Although we seldom have anyone needing to leave early, it does happen.

As to assignments, the technical standard is that it's legally only a change of name/responsible party. Nothing else from our perspective changes. The rent payments, due dates, terms condition, parking spaces, security deposits, etc., stays exactly as it is. So, any issue of security deposit is between the original tenant and the replacement tenant as the security deposit follows the unit, not the person. When the new tenant leaves, they legally get the security deposit.

From my understanding, the departing tenant can ask for the security deposit amount to be paid to them by the new tenant. Sometimes they use the deposit or part of it as a negotiating tool or incentive. Our part in this is simple a name change in the ledger and possibly a security deposit verification letter of how much is on deposit. I would say, it's all subject to negotiation between the two of you.

Now, as adjusterjack said, check with their landlord to see if they have any specific way they handle it. Some may want to return the deposit to the original tenant at assumption while collecting a new one from the new tenant. Others may do as we do just a ledger change and leave it between the tenants. And others may have some bunged up way of handling it. So, check with them.