Question submitted by APIA member Maggie: I have existing tenants, a couple with an adult daughter. The tenancy agreement is currently in the parents’ names. They would like to change it so the tenancy is in the daughter’s name and have requested a new tenancy agreement.
All three will continue to live there (as they always have), but the daughter is eligible for additional government financial support. They want the bond refunded to the parents and a new, higher bond lodged for the daughter.
I can’t do a final inspection for the parents as the house is still full of their belongings. The daughter is happy to take responsibility for any damages from the start of the parents’ tenancy.
Is it better to use a change of tenant form in this case?
Answer from Sara Mitchell, Operations Manager, Harcourts Reforma
In this instance, the best approach is to complete an assignment.
An assignment occurs when the current tenant(s) wish to transfer their tenancy to a new tenant, and the incoming tenant agrees to take on all existing terms and conditions of the tenancy.
Final Inspection — Even if the Property Remains Occupied
Even if the property remains occupied, you should carry out a final inspection for the outgoing tenants. This inspection can be done around the tenants’ belongings, but all defects, damages, and concerns should be documented thoroughly with both written notes and photographic evidence.
A final inspection is strongly recommended as it provides protection should disputes arise at the end of the tenancy.
Assignment Agreement
An assignment agreement should be completed. This document clearly states which tenants are leaving and which will remain. It is then attached to the original tenancy agreement — a...
