Assignment of tenancy
Sometimes it is possible for a tenant to end their tenancy by transferring their tenancy to another tenant (called assignment).
From 11 February 2021, a tenancy agreement cannot contain a clause prohibiting assignment (unless it is a social housing provider) (s 43A RTA).
If the tenant wants to assign the tenancy to another tenant they will need to get written agreement from their landlord to remove their name from the tenancy agreement and replace their name with another tenant from a particular date. The landlord can not unreasonably withhold their consent for this (s 43B RTA).
Tenancy Services provide this template letter that tenants can use to request an assignment of their tenancy.
On the date the new tenant takes over, the original tenant is no longer responsible for the tenancy. They will still need to pay any money they owe to the landlord from before that date.
Quick tip
In the case of a periodic tenancy, it is generally a better option for the tenant to end the tenancy without reason with 28 days’ notice, than it is to assign the tenancy to a new tenant.
What to do if the landlord withholds consent for assignment
The landlord cannot unreasonably withhold consent to assign a tenancy to a new tenant. There are only a limited range of issues that the landlord should consider when deciding whether to withhold consent. These could include:
- whether there is a reasonable basis for the tenant’s request
- the impact on the landlord (eg, lost revenue, time, etc)
- whether there are any problems with the new tenant eg, poor credit or references.
The tenant can mitigate the likelihood of a landlord withholding consent by addressing these issues when making the request to assign the tenancy. This might include providing references for the new tenant and offering to pay reasonable expenses.
If the landlord withholds consent, or takes too long to respond to the request of the tenant, this is an unlawful act and the tenant can apply to the Tenancy Tribunal to have the issue resolved.
Quick tip
In the case of a fixed-term tenancy where the landlord withholds consent for assignment and the tenant considers this is unreasonable, the tenant might want to suggest ending the fixed-term tenancy early by agreement as an alternative, before taking the matter to the Tenancy Tribunal.
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