The Residential Tenancy Agreement (Lease) is a legal contract. If any party wants to change the lease, all parties must agree in writing. This includes the Agent, The Landlord and ALL tenants who are party to the lease.
There are ramifications – can the remaining tenants on the lease afford the rent? Will the landlord be exposed because there are fewer tenants on the lease?
The Bond also needs to be varied to identify the correct stakeholders. The Agent does not refund the exiting tenant’s bond in these circumstances, this must be agreed to and arranged by the remaining tenants. The Agent will merely effect the Bond Variation as lodged with the Bond Administrator.
What if the remaining tenants want to bring in a new tenant? Is the new tenant then party to the existing Property Condition Report signed at the commencement of the original tenancy? We recommend that the new lease contains a clause stating that the existing Property Condition Report will be used, irrespective of the tenant changes, at the end of the lease.
Are there costs for making all these changes? There are some instances where this may be viewed as a break lease and penalties may apply. Talk to your Property Manager who is able to assist you through this process with minimal disruption. We understand change happens and we want to help you. It must be done properly though to avoid confusion when you do move out of the property.