What I Require Before a Tenant Moves Into Another Vacant Unit

A tenant once called me asking to switch from a third-floor one-bedroom to a ground-floor unit that had just opened. Same rent, same size. She'd lived there two years, never missed a payment. I said yes, but I did it with paperwork, an inspection, and a clear handover date. That's the only way I handle unit transfers.

A unit transfer is when a current tenant moves from one rental to another under the same ownership, instead of ending their tenancy and starting fresh. For me, every transfer starts like a new application. I pull the tenant ledger (that's just the payment history), I walk the current unit, and I write down its condition. If the ledger shows late payments or the unit has damage beyond normal wear and tear—meaning the gradual wear you'd expect from living there, not neglect—I stop there.

Same-size transfers

Same-size moves are the easiest. The rent usually doesn't change, so I'm not re-verifying income because the financial picture is identical. I still need to see the current unit before anything is signed. I take photos, I note every scuff on the wall, and I have the tenant sign a condition report. That's a written record of the unit's state at the time they move out of it. Then their security deposit moves with them, less any deductions for damage I find.

The paperwork is a lease amendment, not a brand new lease. It says the old lease ends on the date they surrender the old unit, and the new lease starts on the date they get keys to the new one. No overlap, no gap. I prorate rent for any partial month: if they move on the 10th, old unit rent is paid through the 9th and new unit rent begins the 10th.

I don't charge a transfer fee if the old unit is left clean and the new unit needed no work beyond a standard clean. If I have to paint or replace carpet in the new unit because it was vacant and worn, I may charge the actual cost, but I get that agreement in writing before the move. Always in writing.

Different-size transfers

Moving to a larger unit changes the rent, so I re-verify income. I use the same standard I'd use for a stranger: their monthly income should comfortably cover the new rent and other debts. A general rule many landlords use is that rent shouldn't exceed 30% of gross income, but I look at the whole picture. If they're moving to a smaller unit, income isn't the issue, but I still talk with them about why. Sometimes a tenant downsizes for a reason that will make them want to leave in six months, like a temporary roommate moving out. I ask directly.

For a larger unit, I also need to know who else is moving in. A bigger space often means an additional adult. Every adult gets a background check that covers credit, criminal, and eviction history, and goes on the lease. No exceptions.

Mid-lease and near-expiry transfers

Mid-lease transfers need the most care. The old lease still has months to run, so ending it early on a handshake is a recipe for confusion. I write an agreement that terminates the old lease on a specific date and starts the new one on a specific date. I include a sentence saying the tenant gives up possession of the old unit at noon on that date and gets possession of the new unit at noon the same day, unless we've agreed otherwise. If there's any gap because the new unit isn't ready, the tenant stays in the old unit and pays rent there until the new one is ready. Never both.

Near-expiry transfers are simpler. If their lease ends in 30 days or less, I usually just let the old lease run out, inspect the unit on the last day, and sign a new lease for the new unit starting the next day. The security deposit transfers after I've walked the old unit and documented its condition. No overlap, no amendment needed, just two separate documents.

One thing I always check before agreeing to any transfer is which unit will be harder to fill. If a tenant wants to leave a two-bedroom that rents in a weekend for a one-bedroom that's been vacant for two months, I might say no, or ask them to wait for a different swap. I run a rental business, and a transfer that leaves me with a long vacancy in the old unit costs me money. I'd rather keep that unit occupied until someone new comes along.