LEGISLATION

Adding a co-tenant

The gist of the legislation

When adding a co-tenant, the existing tenant must seek consent and manage the bond.

The important parts, at a glance

We’ve picked out the key parts of the legislation and made them as easy as possible to read and understand.

If you'd like to read the full legislation, click here >

1.

An existing tenant can add a new co-tenant to an existing agreement if they obtain consent in writing from the lessor plus any other tenant. The written request must be provided at least 14 days before the day the new co-tenant expects to move in.

2.

A lessor cannot unreasonably refuse consent. For example, if the new co-tenant can afford to pay the rent and has good references, a refusal would not stand up in ACAT. If there is a reasonable reason for the lessor to refuse the request, then the lessor must inform the existing tenant and new co-tenant of that reason in writing.

3.

If the existing tenant does not receive a response from the lessor within 14 days of their written request (acceptance or refusal), they can proceed with the new co-tenant.

4.

The day after the new co-tenant becomes a co-tenant, the existing tenant must provide them with a copy of the condition and inventory report. Within 14 days after, the existing tenant should request the new co-tenant pay their share of the bond and notify the bonds office that this has been done.

5.

It’s not a legal requirement to sign a new agreement, however we always request a new tenancy agreement is signed to protect everyone.

6.

In a co-tenancy, all tenants are equally bound by the agreement.

  1. We vet additional tenants the way we’d vet any tenant. Rest assured that we wouldn’t support a new co-tenant request without ensuring they are thoroughly vetted.  
  2. If you receive a request like this, make sure you get back to us so that if you do want a say in who will be tenanting your investment property, you get a say before it happens by default.