Roommate Changes and Security Deposits: What Should Be Documented at Renewal?

Start with who is actually on the lease

Determine whether the departing person is a leaseholder, subtenant or informal roommate and whether the incoming person will become a tenant under the landlord's agreement.

National market context is not a legal rule. Lease terms and state/local law control the actual tenancy. Verify the rental property's jurisdiction and written agreement before acting.

Do not let a private handoff rewrite the landlord's records

An incoming roommate paying an outgoing roommate may settle money between them, but it does not necessarily change the landlord's deposit accounting or release the departing tenant.

Document condition when the household changes

A new occupant can inherit a unit with existing wear or damage. A dated condition/photo record helps distinguish what existed before the replacement from later issues, subject to applicable law.

Make the amendment and deposit record agree

If management approves a replacement, document who leaves, who joins, the effective date, any release, and how the deposit is being handled. Deposit limits and rules vary by jurisdiction.