Tenant swap and adding a new sharer

Why it matters

An undocumented swap is the most common reason a deposit claim fails at the end of a shared tenancy.

Legal requirements

• A joint tenancy makes each tenant liable for the whole rent.
• Changing a party requires either a deed of assignment with all parties consenting, or a new tenancy.
• The deposit protection registration and prescribed information must be updated.
• Right to rent checks must be carried out on the incoming tenant.

Common mistakes

• Crossing a name out on the agreement and adding another.
• Failing to update the deposit scheme record, which can trigger penalties.
• Skipping referencing because the existing tenants vouch for the newcomer.
• Not documenting who is owed what share of the deposit at the end.

Practical guidance

• Reference the incoming sharer to the same standard as a new applicant.
• Use a written deed of assignment signed by outgoing, incoming and remaining tenants.
• Update the deposit registration and reissue prescribed information to everyone.
• Record the property condition at the point of change with photographs.

Assignment or new tenancy

Assignment keeps the existing tenancy running with a changed party, preserving the deposit registration in most schemes with an update, and avoids a fresh fixed term. A new tenancy resets everything, including notice periods and the deposit, which is cleaner but more work. For a single swap mid tenancy, assignment is usually the practical choice.

Handling the deposit fairly

The deposit belongs to the tenants collectively, so the outgoing sharer usually settles with the incoming one directly rather than with you. Confirm in writing that the deposit remains held in full, that the outgoing tenant has no further claim, and that the incoming tenant accepts the property in its current condition as recorded. That single paragraph prevents a two year old argument resurfacing at check out.