I've had an apartment in Venice, CA for over a year. It was a year lease, which changed to month-to-month after the lease expired. I've been here for 18 months. I called at the beginning of October to tell them I'd be gone by November 1st, which is the case.

My roommate, who is not on the lease (he just moved here), is looking to start a new lease with the landlord. I spoke to them today to inquire about my security deposit.

He told me that if my roommate signs a new lease that I will have to give a letter of forfeiture of the deposit and that the deposit will carry over to the new tenant. He told me that in order to receive my deposit, they will have to regain possession of the apartment.

It seems to me that should there be a new tenant - one that is not currently on the lease, that they have possession and give said possession to the new tenant, regardless of my relationship with the new tenant, and hence should be obligated to return my security deposit and ask the new tenant for a new deposit.

Am I wrong in this assumption?

Do what the landlord suggests OR do the forfeiture and get reimbursed from your roommate... if the property is not vacated, the deposit return is not an issue.

The landlord seems to be tacking the position that this is a lease transfer, not a new occupancy. And they have a point. If I were you I would get the deposit from the roommate.