Adding Names to existing Lease

Hi All,

Not come across this before but the existing lease for my IP is in 1 name and for 12mths. I had a request from the tenant to add her mother and brother to the lease as they were moving in.

What are the pros and cons for allowing this? Thank you

 

What state is the property in?

 

Sorry - Ip is in QLD

 

One benefit is that three people are now required to ensure the rent is paid and the property is kept in good order, rather than just one. As stated before, the property has to be suitable for the additional people and each additional person must provide an application, payslips, etc. Ensure your PM does a background check (TICA, for example) so that you know who you're getting. Sometimes people try to slip someone with a bad rental history into the property this way.

 

I'm not in QLD, but @Andrew Hancock will know.

Here I get all new tenants to fill in an application as though they're applying for a vacant property, do all the same checks and approach the owner for approval. Technically the owner cannot withhold consent, but if you ever need to claim through insurance you need everyone's details living at the property - including ID, work history etc.

 

A lot of pros and very few cons.

Pro meaning more people are responsible for rent and he place is well maintained.

Con one of the people might not be desirable with poor rental history.

You can still refuse the new tenants but they will likely still live there anyway except they are "visiting".

 

Great comments from above mostly covering everything.

Property Manager should discuss with you whether the house is suitable for the extra people. In most cases it should be fine.

The new tenants apply just like the original tenants and their applications are processed to the same criteria. Assuming there are no issues, the next question is whether these applicants want to be approved occupants or leaseholders. I personally don't have an issue either way but many PM's have their own opinions. Leaseholders adds extra responsible bodies but it also makes it a little more painful if they leave.

Paperwork can be done a couple of different ways.
Regarding addition of leaseholders; If the lease is near an end we'll usually just make a note and wait for the renewal. If not, I'll re-print the relevant pages for extra details and signatures.
Adding approved occupants is easier, their names just fit nicely on page 8 with little initials from myself and the leaseholders. PM might need to change the number of people approved to live there (e.g. from 2 to 4) on page 2 as well.

Also, you are not allowed to unreasonably withhold permission, but if there is a significant issue you have every right to say no. If you do, be prepared to investigate and breach them because they'll probably move in anyway. Bear in mind it's also quite hard to prove in tribunal if it comes to that.

 

Tomas provided a good response but I would add the following points:

- the change of tenancy is at the discretion of the owner. The concept of not refusing a reasonable request comes down to if you interpret or accept the change as a reasonable request. There will be varying interpretations of this but IMHO this is not reasonable. A reasonable request would be "you approved a dog but there is no fence or gate, can you please put one in?". Changing the entire structure of the lease with regard to occupants is a little different.

- if their credentials check out and you agree, do a new lease with all three on there instead of just adding approved occupants. This affords you greater protections. If they want to live there but aren't prepared to be on the lease, you have to ask why.