Can One Tenant Move Out While Another Stays On The Lease?

In the vast majority of instances, tenants are signed to a fixed-term lease of six or twelve months. However, circumstances can change during the lease in ways which are not anticipated at the start of the tenancy. This could be a relationship break up, change in work circumstances, disagreement between tenants, or any of a number of other reasons. 

In this article we take a look at what happens when tenants wish to make changes to the names on the lease, and what happens where there is disagreement over who stays and who goes.

What Happens When All Tenants Want To End The Lease Early?

In the instance that all tenants on the lease wish to move out earlier than the end of the fixed term, as much notice as possible should be provided to the agent or landlord, and a break fee will generally apply.

​Further details on the applicable break fee and processes are contained in our post "What Happens When A Tenant Wants to Break A Lease Early?".

But sometimes not all tenants wish to move out at the same time...

What Happens When All Tenants Agree To Change The Names On The Lease?

It can often be the case that one tenant decides to move out, or agrees to move out, while the other tenant/s will remain in the property - and all tenants are in agreement with the changes. 

​In this instance, there is the option to remove one tenant from the lease and transfer the agreement into the name/s of the remaining tenant/s only.

​Alternatively, there may be a "replacement" tenant able to move in in the place of the departing tenant, making it easier to keep up with rental payments after one of the original tenants has moved out. 

Either way, the property manager or landlord must be advised of the desired changes first and they do not have to agree with the requested changes. 

Very importantly, if approved, the changes should be formalised through the completion of a change in shared tenancy form and also a recording of the change in entitlement to the bond. This latter step is crucial to ensure that a departed tenant is no longer liable to have the bond they paid withheld due to the actions of tenants remaining in the property after they have left. 

What Happens When There Is A Disagreement Over Who Stays and Who Leaves A Rental Property?

Where there is disagreement among tenants over who moves out and who remains in the property (common in cases of marriage or relationship breakdown), your property manager or landlord is not in a position to get involved. Tenants on the lease must come to an agreement before any changes are made. 

For example, if one tenant advises the property manager that another tenant has moved out and should be removed from the lease, the tenant who has moved out must provide written agreement to the change to have themselves removed from the lease. 

Once an agreement has been reached by the tenants, the property manager or landlord must be advised of this request first and they do not have to agree with the requested changes. 

Again, if approved the changes will need to be formalised through the completion of a change in shared tenancy form and also a recorded change in entitlement to the bond. 

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View more information around breaking a lease early. Should you have any questions about this, please contact your property manager or landlord.

If you wish to have your property and tenant's expectations expertly managed in Newcastle or Lake Macquarie, contact us today.