Co-renting is when several people rent a property together, such as in a share house. Co-renting used to be called co-tenancy or joint tenancy.
In a co-renting arrangement, all renters sign the rental agreement (lease) and are equally responsible for paying rent and taking care of the property.
This means co-renters moving out should make sure their name is taken off the rental agreement. If they do not, they could still be held responsible for any damage or unpaid rent, even if they don’t live at the property any more.
If the co-renter moving out is being replaced by someone else, the new renter’s name should go on the rental agreement. If the co-renter is moving out without being replaced by another renter, they must negotiate with the remaining renters and the rental provider to have their name removed from the rental agreement.
Transferring the bond
If someone moves out and another person moves in as a co-renter, they must transfer their portion of the bond within five days of the new person moving in. This is important because at the end of the rental agreement, the Residential Tenancies Bond Authority (RTBA) will only release the bond if all the renters on the agreement can provide their signatures.
To transfer a bond, look up your bond online at the RTBA site using your bond receipt number, and then you can create a Transfer a bond form.
Changes to the bond between outgoing and incoming renters is not covered by law, and is a private matter that needs to be negotiated among the renters. The law only says that the renter, rental provider and new renter must sign the bond transfer paperwork.
For further information, contact the RTBA on 1300 137 164. Calling this number costs the same as a local call. Additional charges may apply if you are calling from overseas, on a mobile or payphone.
Forms you might need
To transfer the bond:
- Look up your bond online at the RTBA site using your bond receipt number, and then you can create a Transfer a bond form.
Sections of the Act
If you want to know what the law says about co-renting arrangements, you can read these sections of the Residential Tenancies Act 1997:
- Section 81 – Assignment and sub-letting by a renter
- Section 195 – Transfer of residency right
- Section 206ZZD – Assignment by a site tenant