Security deposit when adding someone to the lease vs. subleasing

This is a discussion on Security deposit when adding someone to the lease vs. subleasing within the Landlord vs Tenant Issues forum, part of the REAL ESTATE & PROPERTY LAW category; I live in a Maryland apartment with 2 other people. When I signed our lease, I told our landlord that ...


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Old Dec 16th, 2009, 05:39 PM   #1
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Default Security deposit when adding someone to the lease vs. subleasing

I live in a Maryland apartment with 2 other people. When I signed our lease, I told our landlord that I would be moving in December. He told me that I could either find someone to take over my responsibilites in the lease or my roommates and I would have to work out another arrangement. I found someone to take over my lease in October and he was added to the lease and he paid a security deposit. When the new person was added to the lease, I made an oral agreement with the landlords representative that I was no longer on the lease and that when I moved out, I would recieve my security deposit back. Recently another of my roommates decided that they needed to move out as well. So, to make a long story short, my landlord has went back on his reps word. My problem is with the amount of money they are charging us for security deposits. I've made an agreement with the person thats going to take over the responsibility of paying the rent that he's going to pay the rent and everything that happens after I move out is his responsibility not mine.

However, our rental office has charged us 4 security deposits for a total of 1800 dollars. On, our lease it states that the deposit that is to be paid is 1350 dollars. It wasnt a problem before because the agreement was that the landlord would give me my deposit back when I moved out. Anyway, they've decided that since they are not letting me out of the lease they are going to hold all 4 deposits until the end of the lease term. They are also trying to charge us a 5th deposit, for the person that will be taking over for my other roommate thats moving, which means they will have a total of 2250 dollars in deposits on a lease that says the deposit is 1350. Is it legal for them to collect security deposits from every person on the lease? I am asking this because before my 3rd roommate moved in, we were told that if we didnt find a third roommate we would be responsible for the remaining portion of the deposit and the rent would be split 2 ways not 3. In other words we dont have individual leases.

The other problem is that they are now telling us that they are not subleasing the apartment to the replacement roommates, instead the replacement roommates are being added to the lease. Which means they are leasing the apartment to all 5 of us. Two of us wont physically be living there but in the city that I live in, it is against the law for more than 4 unrelated individuals to live togethere, which means they cannot legally add a 5th person to this lease.

Whats the difference between adding someone to the lease and subleasing? And how does it impact the security deposit? Should the amount of the deposit increase everytime someone is added to the lease, our actual lease does not mention this at all?

Any advice you can give me on how to deal with this situation would be helpful. I am totally confused right now and the whole thing seems really shady. And it doesnt help that I dont know much about Maryland laws.
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Old Dec 17th, 2009, 08:14 AM   #2
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Default Re: Security deposit when adding someone to the lease vs. subleasing

From your message it is clear that you have taken the property on lease till December. However in October you brought in a new replacement. There is a difference between a sub lease and adding a new lessee. Sub lease is the name given to an arrangement in which the lessee in a lease assigns the lease to a third party, thereby making the old lessee the sublessor, and the new lessee the sub lessee. Whereas in case of adding of a new lessee the new lessee is having the status of the lessee and he is not the original lessee's lessee but in fact shares the same status as the original lessee is having.
In claiming security deposit, the lessee who is moving out should give written notice of 30 days of his intention to move out after 30 days. Further, lessor can deduct from security deposit amount of damage done to property, if any. The lessor cannot deduct the amount of the unpaid rent if he later again gives the property on rent before the end of the rental period of original lessee. In this case, rent received from the new lessee will be reduced from the amount of unpaid rent due to the landlord. In other words, the lessor cannot charge twice during any overlapping terms, but rather can deduct only the amount of his loss.
When a new lessee is added to the existing lease then it will amount to amendment of original lease and this can be done only if all the parties to the agreement give their consent and the change done will be only for the conditions on which consent is given.
You can file a suit in the court for recovery of the security deposit amount after giving a notice to the lessor of your intention to file a suit. This notice may help you in early settlement of your case, if lessor agrees to return the security deposit.

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Old Dec 17th, 2009, 11:47 AM   #3
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Default Re: Security deposit when adding someone to the lease vs. subleasing

You cannot recover your deposit yet. You are still on the lease! The unit is not vacant. Deposits are not returned until 1) the person is no longer on the lease or 1) the person is moving out and the unit is vacant. As long as you remain on the lease and the unit is occupied, you can't get the deposit. You need to be released from the lease!!!

Contact your LL and insist that he either write the new tenant up as a sublease for you, or to remove you from the lease entirely and replace you with the new tenant. If he decided to sublease, your deposit would remain as you are still obligated for any default of your sub-tenant. If the new sub-tenant fails to pay rent, damages the place, etc., you are on the hook. With a subtenant, you are (in effect) his LL and you are still responsible to the owner as the tenant on the original lease. The owner only gives the you and the sub-tenant permission for this arrangement.

It would be better if you are removed from the lease entirely, and not get involved in a sublease situation! You don't want to be responsible for someone else's defaults. Maybe you should remind the LL of the law which states only 4 unrelated individuals can be on a lease. Get him to remove you from that lease!

The other issue is the amount of deposit that is being accepted. Maryland law says the deposit can go only as high as 2 months of rent. But the lease, which is still in effect, says it is equal to only one month of rent. Unless everyone signed for this to be changed, the LL should not be requiring new tenants to add to the deposit already on file. If he is subleasing, your deposit stays on file to cover your subtenant. If he signs a new tenant and removes you, your deposit should be returned.

But get off that lease at all costs!
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