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 anymore.
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 5 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 complete the bond claim.
It is important to note that a bond transfer does not change or repay any amount of the bond. Fund transfers between incoming and/or outgoing co-renters must be organised privately.
Read more about renter transfers.
Forms you might need
To transfer the bond:
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