How Does the Tenancy Transfer Process Work?
It’s important to note that tenants are responsible for paying their rent for as long as their name is on the lease, regardless of whether or not they are still living in the rental property.
In situations where there are multiple people on a lease, on occasion one person may wish to vacate in the middle of an agreed tenancy period. This outgoing individual may then be replaced by a new tenant. When this happens, it’s necessary for both the incoming and outgoing tenants to go through the tenancy transfer process. There is no limit on how many times tenants can be transferred within a lease, but new tenants must always be approved by the landlord.
This process can often appear complicated, as it is a multi stage process involving several different parties including the property manager, the outgoing and incoming tenants, the landlord and the Residential Tenancies Bond Authority.
Firstly, the tenant should notify their property manager that they wish to transfer one of the tenants out of the lease. The property manager will then discuss this with the landlord and notify the tenant on how the incoming tenant should proceed with their application.
Any incoming tenants must apply to the landlord in the same way as they would apply for a new lease. The landlord will want to check their references and employment details to ensure they are responsible and suitable for their property.
Property manager Candice Demitri says, ‘I educate my tenants at the start of their tenancy that if they want to transfer a tenant, the new tenant needs to be approved by the landlord in exactly in the same way that they were approved when they applied for the lease.’
Once the incoming tenant’s references have been checked and they have been approved, the property manager will send all tenants, including the incoming and outgoing tenants, a document which outlines exactly which tenants will be staying and which will be leaving. Upon signing a tenant transfer fee is payable.
Unless a new lease is signed, the incoming tenant replaces the outgoing tenant and is responsible for their portion of the rent and the condition of the property until they vacate.
‘This fee covers everything that Marshall White does to complete the transfer, including processing the application, checking their references, negotiating with the owner and preparing the transfer documents to be signed,’ Candice explains.
The fee also covers the necessary bond transfer through the Residential Tenancies Bond Authority. The old tenant needs to relinquish responsibility for their portion of the bond and transfer it to the new tenant.
Unless a new lease is signed, the incoming tenant replaces the outgoing tenant and is responsible for their portion of the rent and the condition of the property until they vacate. However, Candice says it’s important to note that tenants are responsible for paying their rent for as long as their name is on the lease, regardless of whether or not they are still living in the rental property.
This process may seem lengthy and complicated, but Candice says the best way to expedite the tenancy transfer process is to make sure that all documentation submitted to Marshall White is filled in correctly.
‘Include as many references as possible, attach the appropriate identification documents correctly and return all the required documents as quickly as possible,’ she advises.
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