A LANDLORD’S CONUNDRUM — WHEN THE HOUSEHOLD HAS SEVERAL ROOMMATES AND THEY ALL MOVE OUT, WHO SHOULD GET BACK THE SECURITY DEPOSIT? A POSSIBLE LEGISLATIVE FIX.

When a residential tenancy of a group of roommates ends, the landlord has to decide to whom to return the security deposit. Three common issues arise: [1] sometimes his decision is complicated by new roommates moving in and replacing old roommates during the tenancy; [2] sometimes by the original deposit being paid by a third party (like a tenant’s parent); and [3] sometimes by the roommates not agreeing on delivery instructions for return of the deposit.

In this essay (in PDF and in Word with hyperlinks), I explain why the answers to the first two issues are clear to me: The final tenants get the deposit. The actual tenants, not the third party, get the deposit.

I’m not sure about the final question. I think there may be no right thing for the landlord to do and so I suggest legislation that could resolve the problem.

My suggestion is that the rule for dividing up the rent paid on Certificates of Rent Paid be used as a model for dividing up the deposit when all the roommates did not agree on how to return the deposit. The rule would be added to Minn. Stat. Sec 504B.178. I think my idea makes sense but am more than open to alternative ideas, especially ones that make better sense.