In short: if you both sign the lease, you're both tenants as far as the landlord is concerned, and whatever happens to you as a couple doesn't change that. A deposit is usually returned at the end of the lease, not when one of you leaves. Many leases don't spell out what happens if one of two tenants moves out: it depends on what your lease says and what you agree with the landlord. Put in writing, between the two of you, who pays what and how one person's exit gets sorted out.
Lease and tenant rules differ a lot by country, state, and city, and they change over time. This guide doesn't cover any specific jurisdiction. Check the rules that apply where you live before acting.
Both signing: what changes
With both names on the lease, the landlord has two tenants. If the rent isn't paid, the landlord can go after it according to what the lease says and what local law allows:
- Depending on the wording and local law, each of you may be responsible for the entire rent, so the landlord can claim the full amount from either of you. This is often called joint responsibility. If one of you pays it all, you'd then need to sort out the other's share between yourselves.
- Or the lease and local law may treat the debt as divided, with each of you responsible for your own share.
Don't assume which one applies to you: the exact wording of the lease is what counts. Before signing, look at which situation is yours. If you have doubts, have a local lawyer or a tenant or consumer organization read it.
The deposit: what to check
- Find out how much the deposit is, and whether local rules cap it or require the landlord to hold it in a particular way.
- Find out when and under what conditions it has to be returned, and what the landlord can deduct. Ask for a receipt for what you pay.
- Ask what other amounts may be charged up front, such as advance rent, and whether agency or application fees are allowed where you live. If you're charged something that looks unusual, ask why and check with a local tenant or consumer office.
How to split the deposit between you
The deposit remains your money, but you won't see it until the end. That's why it's worth deciding how it gets divided. For the example, assume $1,000 rent, a $1,000 deposit, and paychecks of $2,800 (Blue, the whale) and $1,600 (Orange, the penguin). The proportional split (2,800 / 4,400 and 1,600 / 4,400) gives:
| Item | Total | Blue | Orange |
|---|---|---|---|
| Monthly rent | $1,000 | $636 | $364 |
| Deposit | $1,000 | $636 | $364 |
| First month plus deposit | $2,000 | $1,272 | $728 |
Each of you puts 22.7% of your pay toward rent. If you'd rather split 50/50, it would be $500 each per month (17.9% and 31.3%). Whichever system you choose, write down how much each person put toward the deposit: that's what will need to be divided at the end.
What happens if one of you leaves
Many leases don't address the case of two tenants where only one wants to leave. There are three common scenarios, and in all of them the lease and your agreement with the landlord are what count:
| Situation | What it usually means | What to do |
|---|---|---|
| Both of you leave | The lease's own terms on notice and early termination apply | Give notice in writing and check what the lease says about ending early |
| One leaves and the other stays | Unless the landlord releases you, the lease generally stays in force for both of you, and whoever stays pays the whole rent | Negotiate with the landlord: leave a single tenant on the lease, or bring in someone new |
| Someone new takes the place of the person leaving | Transferring or changing who is on the lease typically needs the landlord's written consent | Ask for it before anyone moves in |
An example. If Orange leaves and Blue keeps paying $1,000 alone, Blue puts 35.7% of their pay toward rent. If it were the other way around and Orange stays, Orange would be putting 62.5% of theirs. Before anyone leaves, it helps to know which place you could sustain on a single paycheck.
The deposit when one of you leaves
The landlord doesn't return the deposit to the person leaving, but at the end of the lease. Between the two of you there are two solutions:
- Whoever stays buys out the share of the one leaving ($364 if Orange leaves), or the newcomer pays it, as part of renegotiating the lease.
- You wait until the lease ends and divide whatever is returned according to what each of you put in, minus whatever needs to be repaired.
Pick one of the two before you need it.
If only one of you signs
If the lease is only in one person's name, the other isn't a tenant. Depending on where you live, they may have little or no legal protection if the named tenant leaves or ends the lease. That's something to find out before you decide who signs, and it's a reason to consider both being on the lease.
Steps before signing
- Decide whether both of you sign or only one, knowing the above.
- Read the clause on responsibility for the rent and the one on the length of the lease.
- Ask for a signed copy and a receipt for the deposit, and find out how it will be held.
- Take photos of the condition of the place on move-in day.
- Write a two-line agreement: how much each of you puts in, what happens with the deposit, and who keeps the place if one of you leaves.
General information, not financial, tax, or legal advice. For your specific situation, consult a professional.