Shared tenancies are common — students, friends, couples, working professionals splitting rent. What's less common is people knowing what to do when one person moves out and someone else moves in. The short answer: you need a Change of Shared Tenancy Arrangement form, and it has to be done properly to protect everyone involved.
Here's why it matters and how to handle it.
Why "just have them move in" is a problem
If someone new moves in without going through the formal process, three things go wrong:
- They're not on the lease. They have no rights as a tenant and no protection if things go sideways.
- They're not on the bond. Bond is held in the names of the people on the lease. Money paid by an unlisted occupant doesn't get returned through the official process.
- The departing tenant is still legally responsible. Until they're formally removed, they're on the hook for rent and any damage — even after they've moved out.
We've seen all three of these come back to bite people, sometimes years later.
The form you need
NSW Fair Trading provides a free Change of Shared Tenancy Arrangement form. Both the departing and incoming tenants need to sign, the remaining tenants need to consent, and the landlord (or agent) needs to approve.
You can find the current version on the NSW Government website under shared tenancy documents. Your property manager can also send you a copy.
What gets agreed
The form covers:
- Who is leaving and who is joining
- The effective date of the change
- How the bond is handled — usually the new tenant "buys in" and the old one is paid out via a bond transfer (handled by the agent)
- Acknowledgement that the lease continues, just with a different name on it
The lease itself doesn't restart unless everyone agrees to a new fixed term. In most cases it just continues uninterrupted with the new combination of names.
A note on bond
Bond changes can be the trickiest part. Officially, the bond is paid out only at the end of the tenancy. So the practical solution is for the incoming tenant to pay their share to the outgoing tenant directly, and for the agent to lodge a bond transfer with NSW Fair Trading so the records match.
If anything happens — damage, unpaid rent — the bond is still claimed against, regardless of whose money is sitting in it. So have an honest conversation with your housemates before someone moves in.
Tips before you change a co-tenancy
- Check the property is still suitable for the number of people staying. Some leases have occupancy limits.
- Have a frank conversation about who's responsible for what — bond claims at the end will involve everyone listed.
- Don't try to do this informally. Forty-five minutes of paperwork now saves months of mess later.
If you're a tenant of a Hunter PM property and need to change a shared tenancy arrangement, get in touch with your property manager and we'll walk you through it.