Real Estate Law
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They are entirely wrong here... If daughter property gave them notice that she was terminating the lease and not renewing, then her legal obligation ends on March 31, 2016 as does the tenancy. If the other roommate decides to stay on, then if the landlord allows it, they would be legally entering into a month to month tenancy with just that roommate since daughter and the roommate have both terminated the existing tenancy effective March 31.
As an aside, in addition to being an attorney, I have also been a landlord for over 26 years...