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2 tenants - joint lease, one moving out

I have 2 tenants (bf and gf) and they're splitting up now - the original 1 year lease is satisfied and I have the lease convert to monthly after the first year.  She is moving out, but he wants to stay - and he can afford it:  Problem is that it's a joint lease...  should I do the following:  1. refund the deposit to both - and have him repay for a new lease (removing her name) 2. no deposit refund since he's staying in the house  3. ??  ideas?

I believe in fresh starts, so I would go with option one. I feel that gives you the opportunity to sign a new lease with new agreements based on one person. Some would do option two because it is a time saver but it would be unfair for the girlfriend who also paid the deposit. Good luck!
thanks!  went with option #1  yay another year signed :)
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