Changes during a tenancy: What happens when a new tenant moves in, or one moves out?

Throughout the lifecycle of a tenancy, circumstances may change, including the people residing in the property. As a landlord, it's important to understand the rules and regulations surrounding the deposit when there are changes made; whether a new tenant is moving in or an existing one is moving out, knowing what to do with the deposit is crucial.  

Introduction to changes during the tenancy 

If your tenant requests any changes to their tenancy, the landlord has the discretion to allow alterations to the tenancy agreement, including changes to the names of the responsible tenants. If you agree to the change, there are simple steps to ensure that the deposit remains properly protected and that incoming, outgoing, and remaining tenants are aware of their responsibilities at the end of the tenancy. 

Should I end the current tenancy, or amend it? 

The Tenancy Deposit Scheme advises that it is best to end the existing agreement, deal with the deposit, and create a new tenancy with a new deposit. This will allow the landlord to assess the property's condition and determine whether the full deposit should be returned, or if any claims need to be made. However, we understand that this may not always be practical. So, let's explore the steps landlords could take in various scenarios. 

Scenario 1: A tenant is moving out 

If an existing tenant is planning to move out, but your remaining tenant(s) want to stay in the property, the best approach is to end the current tenancy agreement. Then, landlords can handle the deposit and create a new tenancy agreement with a new deposit. The steps to follow are: 

1. Repay the outgoing tenant their share of the deposit, whether it's for their full amount or a partial refund. 
2. Create a new tenancy agreement: Draw up a new tenancy agreement or, if needs be, make an amendment to reflect the change in tenant. 
3. Provide the outgoing tenant with a waiver that confirms they have received their share of the deposit refund, and that they have no claim to the deposit under any new tenancy agreement. 
4. End the old tenancy registration: If a new tenancy agreement is entered into, bring the deposit registration for the old tenancy to an end. 
5. Protect new deposit: Protect the deposit for the new tenancy with a Government-approved deposit protection scheme, such as TDS, within 30 days of receiving it, along with the new prescribed information. 

Scenario 2: A new tenant is moving In 

If you agree to add a new tenant to the tenancy, TDS’s suggestion is to make a fresh tenancy agreement or an addendum to ensure their protection and document the agreement of all parties involved.  

1. Collect the appropriate share of the deposit from the incoming tenant, as detailed in the tenancy agreement or addendum. 
2. Ensure the incoming tenant agrees in writing to be bound by the original inventory. 
3. If a new tenancy agreement is entered into, bring the deposit registration for the old tenancy to an end.  
4. Protect the deposit for the new tenancy with a Government-approved deposit protection scheme within 30 days of receiving it. 
5. It is also important for the landlord to ensure that, if necessary, new Prescribed Information and all required key documents are provided to the new tenant. 

TDS Custodial Scheme for tenant changeovers 

The TDS Custodial Scheme platform provides landlords with a user-friendly online tenant changeover feature, streamlining the deposit management process. With TDS Custodial, you can effortlessly remove outgoing tenants from the deposit registration, repay owed amounts, and seamlessly add details of incoming tenants.  

Simple Deposit Protection 

TDS Group is the leading tenancy deposit protection and resolution service provider in the UK making life easier for tens of thousands of agents, landlords, developers, and millions of tenants and homebuyers. We're backed by Propertymark, Royal institute of Chartered Surveyors (RICS) and the NRLA. 

The Tenancy Deposit Scheme not only provides deposit protection but also helps resolve any disputes that may arise at the end of the tenancy, and free mediation with TDS Resolution for any mid-tenancy disputes, such as rent arrears or breach of contract.  

By joining the Tenancy Deposit Scheme, you'll unlock the ultimate toolkit with templates, tools, and our comprehensive deposit protection management dashboard.