Do Subtenants Need to Sign a Tenancy Agreement?

I'm looking at moving into this place where I'll be subleasing from a head tenant. The head tenant notified the real estate agent, who then asked me to complete a tenancy agreement for approval.
I understand that "A landlord must give permission to sub-let, unless there is a good reason to refuse.”

Is it fair for the Property Manager (Real Estate Agent) to get yout onto the lease as well, and make you sign their tenancy agreement? The head tenant is actually quite a nice bloke, but the agents seem pretty hostile and narcissistic. I wouldn't trust them with all the sensitive information I'd be handing over in a tenancy agreement. They also want me to do everything the head tenant is doing e.g. pay a bond, pay them rent etc. I made it clear to them that I'm not interested in being a tenant, but rather, just a subleasee. They said that if I don't do what they're asking, I won't be approved.

Giving the head tenant approval for sub-letting is one thing, but can they force their subtenants to sign a tenancy agreement?

Comments

  • +6

    Your effectively becoming a tenant.

  • Yes because they can deny the landlord can deny subletting.

  • +1

    I have always just had the subtenants registered as an 'approved tenant' with the real estate without formally being on the lease agreement.

  • Update:
    Upon further enquiry, the agent has responded stating that the tenant will be in breach of their tenancy agreement if I move in without filling a tenancy agreement myself. This is in the state of QLD, where agents use the RTA General Tenancy Agreement. I think this is nonsense, since giving approval to the tenant to sublet is very different to evaluating a subtenant, since the subtenants agreement is with the head tenant, not the agency or landlord.
    Clause 25, (2), states "The tenant may transfer the whole or part of the tenant’s interest under this agreement, or sublet the premises, only if the lessor agrees in writing to the transfer or subletting."
    I interpret that as meaning that the lessor just has to give written approval for their tenant to sublet. Not for the subtenant to put in an application.

    PS, I know I can find another place if I wanted to, but I thought I'd just nut this one out and get others' opinions, in case I or others encounter similar issues with steal estates.

    • I don't see what your problem is. It's perfectly reasonable for a lessor to know how is living in a property they own. Think about it from the other side, if you owned a property would you want at least some sort of background check run on who is actually living in your property? Any real estate agency worth their salt would run a check on who is actually living in the property and you're probably going to be coming against this problem a fair bit.

      • Knowing who lives there is a bit different to having a tenancy agreement with them. They should separate a background check from a tenancy agreement.

  • Theres two possible scenarios here.

    1. The lease is a traditional rental agreement for the whole unit or house. The real estate agent wants your name on the lease so that you are liable for any money if the current lease holder defaults on the rent or for causes any damages.

    Are you replacing a tenant who has left? Maybe the remaining tenant does not have enough income to comfortably afford the total rent so the real estate agent is insisting on another name on the lease.

    It is a bit odd that they want you to pay a bond, there should already be a bond lodged on the property. This makes me think that the situation is…

    2- Each bedroom is leased individually and because of that you are required to sign a lease and pay a bond for your room.

    If youre not comfortable with the terms then dont move in. It really is as simple as that.

    • Yep those scenarios are possible. In this case, the head tenant does have the dime, and the lease is not for individual bedrooms.
      I think it's just the real estate agent's way of minimising a period where the property is not leased, in the event the head tenant ends the lease or doesn't renew it.
      And yes, it is as simple as not accepting it. I think it's worth discussing to know our rights, and what other people's experiences have been, so that we can be better prepared in case we come across such hurdles again. During the upcoming week, I'm planning to notify the head tenant that I won't be moving in, due to the demands of the agent.

  • I have had experience in this area having been a sub-tenant and a head tenant. As a head tenant I found that property managers generally run through a 'script' and are not very good at handling anything that is outside of their usual day to day. I obtained permission to sub-let and I had separate tenancy agreements, and bonds, between me and the sublessors. For the head tenant side of things, the PMs tried sending me application forms and asked me to have the sub-tenants fill them in. I had to explain to them that I would be sub-letting and not putting them on the head lease, however for purposes of informing the landlord of who is living in the house I would ask the sub-tenant to provide their personal information to the agent. The conduit for this was for the sub-tenants to put their details into the RE agents regular 'application' form but I asked sub-tenants to not sign the form and not fill out the credit check section. For subsequent changes in sub-tenants I didn't bother with the 'application' form anymore, I just obtained permission from the sub-tenant to pass their information along to the landlord, and I sent an email to the property managers informing the landlord that sub-tenants had changed and here is their new name and particulars.

    In the sub-tentant lease agreement to my sub-lessors I had a clause that I would give the sub-tenant(s) the 'option' to take over the head lease in the event that I decide or are otherwise forced to end the head tenancy. If that option was executed they would then have to go through the full tenancy application with the real estate office.

    So in summary as a sub-lessor you are not on the head lease, but all parties need to be talking the same language. The head tenant does not seem to be taking charge in this situation as he should be and you should not really be talking directly to the landlord/agents. As explained by others the other option other than a sub-tenant is to be a co-tenant. The RE agents seem to be under the impression that you are coming in as a co-tenant.

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