Just got off the phone with Guy.
I told him that we will be staying at the apartment and that we would like to have the new tenant put on the lease. Legally only 4 of us (the guys) are on a written lease and guy does not want to have 5 people on the lease, so technically Kat can leave whenever she wants (don't get any ideas though Kat, Jay has a very particular set of skills...).
Obviously I suggest we put the new kid on the lease and then we draft a binding document linked to the lease for the 5th person. When the new guy moves in I will have him pay me the extra $700 for security deposit up front and then I will give that $$ to Derek, I did the same for Miller and Kat.
I mentioned those couple of issues to Guy again about the grout and what not.
I'm sure someone has feedback and Guy seems pretty easy going if you guys want to handle any of this differently.
Ben