When a tenant signs a lease it’s normally intended that they want to live in the property for twelve months or more. It’s often a common experience to see a tenant continue renting beyond the first twelve months but they go on a month-by-month lease. It is understandable as circumstances can change at it provides the tenant with the flexibility to leave the property on short notice.
However during a signed lease a tenant may also encounter a lifestyle change requiring them to vacate before the lease expires. This is where a transfer of lease to a new tenant can be a very useful option.
Transferring the lease means that whoever moves in will take your place from wherever the tenant was up to
An example of a transfer of lease may be that a tenant wants to leave their lease after three months to accept a job interstate. The tenant also had a room mate occupying the property. As the tenant had a remaining nine months the tenant can look to transfer the remaining lease to their room mate. With the use of your property manager the tenant transfer is extremely easy. It is important to note, the lease does no reset.
The steps to transfer your lease:
- To initiate the process, email your property manager. Advise them you want to vacate the property. If you have someone to replace your lease, let them know. This doesn’t need to be a room mate, it could be a friend, work colleague or even a family member, to name a few.
- Once you’ve found a person to transfer your lease, that person will need to apply as normal. The property manager will review the application and request any supporting documents where necessary.
- Once reviewed the property manager will forward the application through to the landlord for approval.
- In the event of an approval, the application is executed and the new tenant pays the bond directly into the original tenants bank account. The original bond the.n becomes the ownership of the new tenant.
Each state of Australia has its differences. In Victoria, Consumer Affairs Victoria shares some important information relating to transferring the bond to another tenant or resident.
A tenant transfer is a great option for tenants. It can reduce any breaking fees, while the landlord doesn’t have to pay advertisements fees to seek a new tenant. If you want to know more about breaking a lease click here.
If this is of relevance make sure you keep your property manager up to date. If you don’t have a working relationship with a trusted property manager, please don’t hesitate to contact us. We can introduce you to the right people.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
Apr 2020
