Co-Tenant Bond Change NSW: How to Transfer Bonds When Tenants Move In or Out

What Triggers a Bond Transfer

In shared tenancies, people leave. New people move in. When that happens, the bond records held by NSW Fair Trading need to reflect who actually has money in the pot. A co-tenant departure, a new roommate joining, or a complete swap of one tenant for another all require a formal bond transfer process.

The bond itself stays with Fair Trading throughout — it doesn't get refunded and re-lodged. The administrative record changes, the financial contributions are adjusted, and life continues.

The Transfer Process

When a co-tenant leaves and someone new takes their place:

1. The outgoing and incoming tenants agree on the bond share. The incoming tenant pays their portion of the bond directly to the outgoing tenant — this is a private financial transaction between them, not a payment through RBO or Fair Trading.
2. Complete the Change of Shared Tenancy Arrangement Form. All parties must sign: the outgoing tenant, the incoming tenant, all continuing co-tenants, and the landlord.
3. Submit the form to RBO or Fair Trading. The bond record updates to reflect the new tenant arrangement.

The total bond amount lodged with Fair Trading doesn't change. The four-week cap that applied at the start of the tenancy still applies. The transfer reshuffles who has a stake in that existing amount.

Mandatory Contribution Records (September 2026)

Since 21 September 2026, every new residential tenancy agreement in NSW must explicitly record each individual co-tenant's monetary contribution to the total bond. This isn't optional — it's a mandatory field in the lease.

The purpose is practical: when a share house dissolves or a co-tenant leaves, the contribution record establishes who paid what. Before this requirement, disputes over bond shares were common at NCAT, with tenants producing conflicting bank transfer receipts and landlords unable to verify who contributed how much.

If you're entering into a new lease or adding a co-tenant to an existing one, make sure the contribution amounts are stated clearly in the agreement.

Landlord's Role in Co-Tenant Changes

Your job as landlord in a co-tenant transfer is relatively contained:

• Sign the transfer form. You need to approve the incoming tenant (you can conduct your normal reference checks, subject to the prohibition on charging application fees).
• Verify the bond total is correct. The transfer should not change the lodged bond amount.
• Update your records. Note the new tenant's contact details, emergency contacts, and any changes to the lease terms.

Some agents have charged $350 or more for what amounts to filling in a form on RBO — a practice that drew significant criticism from the Tenants' Union. For a sublet or co-tenancy, a landlord or agent may charge only reasonable expenses actually paid in giving consent; a general administration fee is not automatically chargeable.

NCAT's New Powers for Domestic Violence Cases

Reforms effective 21 September 2026 under the Residential Tenancies Amendment (Domestic Violence Reform) Act 2025 give tenants affected by domestic abuse these options:

• End a perpetrator co-tenant's part of the tenancy. A final AVO that excludes the person from the premises ends their co-tenancy. If there is no such order, another co-tenant may apply to NCAT to end the perpetrator's tenancy.
• Ask remaining co-tenants to repay a bond share. They must pay within 14 days of the request, less rent owed or other reasonable costs related to the property. This 14-day requirement does not apply if a final AVO excludes the former co-tenant from the premises.
• Apply to NCAT about the bond split. If asking the remaining tenants is unsafe or there is a dispute, a current or former tenant may apply for an order about how the bond is paid between co-tenants. NCAT can decide each person's share and may consider their recorded original contribution. Apply within six months after the tenancy ends.

These options let a victim-survivor seek a bond-share decision from NCAT when a direct request to the remaining co-tenants is unsafe or disputed.

When the Property Is Sold

If you sell the rental property during a tenancy, the bond stays with Fair Trading. You submit a Change of Managing Agent or Owner Form to update the account records, and the new owner inherits the landlord position — including all bond obligations. The tenants' rights over the bond don't change.

For the complete bond compliance process — from lodgement through co-tenant changes and end-of-tenancy claims — see our NSW Rental Bond guide.

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