Transferring a lease (assignment)
If a tenant wants to leave and they have found someone to take over the remaining period of their lease, they can transfer the lease to the new tenant.
The new tenant takes over all the previous tenant’s responsibilities under the lease.
Transferring the lease from one tenant to another is referred to as assignment in the Residential Tenancies Act 1997.
A tenant must not transfer (assign) the lease without the landlord’s written consent.
The landlord:
- Must not unreasonably withhold consent to transfer the lease
- Cannot charge a fee for consenting, or refuse consent on the ground that the tenant has refused to pay a fee
- Can require the tenant to pay reasonable costs incurred for preparing a new lease document.
If a tenant transfers (assigns) their tenancy without the landlord’s written consent, the landlord can give them a 14-day notice to vacate (end the tenancy and leave the property). This notice applies to the new tenant(s) as well as those named on the lease. For more information, view our Landlord giving notice to vacate page (https://www.consumer.vic.gov.au/housing/renting/ending-a-lease-or-residency/if-the-landlord-or-owner-wants-the-tenant-to-leave/landlord-giving-notice-to-vacate).
Residents in rooming houses (buildings where one or more rooms are available to rent, and four or more people in total can occupy those rooms) can not assign or transfer their residency rights. For information on ending a rooming house residency, view our Rooming house resident giving notice of intention to vacate page (https://www.consumer.vic.gov.au/housing/renting/ending-a-lease-or-residency/if-the-tenant-wants-to-leave/rooming-house-resident-giving-notice-of-intention-to-vacate).
Transferring the bond:
When a lease is transferred (assigned), the bond must also be transferred into the new tenant’s name. For more information, view our Transferring the bond from one tenant to the other page (https://www.consumer.vic.gov.au/housing/renting/ending-a-lease-or-residency/transferring-the-bond).
If the landlord does not consent to transfer the lease:
The landlord must consent to transfer (assign) the lease, unless there is a good reason to refuse.
If the landlord withholds consent and the tenant thinks this is unreasonable, they can apply to the Victorian Civil and Administrative Tribunal (VCAT) for a determination that consent of the landlord is not required to transfer the lease.
case study
Example only (outcome may differ in individual cases)
Riccardo and Andy are friends who share a rented property. Half way through their 12-month lease, Riccardo is offered a job in another city and needs to move out. However, Andy wants to stay. They find another tenant, Mel, to take Riccardo’s place for the remainder of the lease. They contact their landlord, who consents to transfer the lease after checking Mel’s employment details and rental references.
Riccardo ensures the lease is transferred into Andy and Mel’s names from the date he moves out. Otherwise, Riccardo might be held liable for future rent or other bills, if Andy or Mel fail to pay them.
Riccardo also transfers his share of the bond, which is lodged with the Residential Tenancies Bond Authority, into Mel’s name. He and Mel agree on an amount to be exchanged between them, to cover the bond and any outstanding bills.
what the law says
Residential Tenancies Act 1997
Section 81 of the Residential Tenancies Act 1997 covers assignment (transferring the lease from one tenant to another). It states:
(1) A tenant under a tenancy agreement must not assign or sub-let the whole or any part of the rented premises without the landlord’s written consent.
(2) A landlord must not unreasonably withhold consent to the assignment or sub-letting of the whole or any part of the rented premises.
(3) An assignment or sub-letting of the whole or any part of the rented premises without the landlord’s consent is invalid unless VCAT has determined that consent is not required.
© State Government of Victoria (Consumer Affairs Victoria)