Sharing a New Zealand residential tenancy: what “joint and several liability” really means, and how one tenant can leave.
Thinking of moving in with a friend or partner? Shared tenancies are super common in Aotearoa, but they come with a few legal quirks worth knowing—especially around who’s responsible for rent/damages and what happens if one person needs to move out mid-tenancy.
Tenants vs flatmates (they’re not the same)
If your name is on the tenancy agreement, you’re a tenant. Tenants are covered by the Residential Tenancies Act 1986 (RTA) and are jointly responsible for all the rent and any damage, not just “their share.” Flatmates who aren’t on the agreement aren’t liable to the landlord; disputes between tenants and flatmates go to the Disputes Tribunal (not the Tenancy Tribunal).
“Jointly and severally liable,” explained (with plain-English examples)
When two or more tenants sign one agreement, you’re jointly and severally liable. In practice:
Rent: If the rent is $500/week and one of your fellow tenant can’t pay, the landlord can lawfully seek the full $500 from any named tenant. You will need to sort out contributions with each other separately.
Damage: If a guest of one tenant breaks a window, all tenants may be held responsible to the landlord, even if only one person caused it.
Rent Arrears : If the rent arrears are $800 and one of your fellow tenants has not been paying, the landlord can lawfully seek the full $800 from any named tenant. You will need to sort out contributions with each other separately.
That’s why it’s smart to choose your fellow tenants carefully, set up a shared-costs system, and keep good records.
If one tenant wants to leave: your options
There are three common pathways. Which one you use depends on whether the rest of the household is staying and what the landlord agrees to.
1) Variation (change of tenant) — the one-out, one-in swap
The simplest fix if others are staying is a variation to replace the departing tenant with a new one. You’ll need written agreement from the landlord and the other tenants, and the variation should state the effective date. Landlords can attach reasonable conditions and recover reasonable expenses for handling the change (they should provide a breakdown/invoices).
Bond tip: Sort the bond share at the same time and make sure the bond record is updated (refund or transfer) promptly.
2) Assignment — transferring the tenancy
An assignment transfers the whole tenancy agreement to new tenant(s). The outgoing tenant(s) must get the landlord’s written consent, and the landlord must consider the request and not decline unreasonably. If you propose the replacement and include their contact details, the landlord should respond in writing within a reasonable time.
Since 11 Feb 2021, landlords generally can’t prohibit assignment in new tenancy agreements (limited exceptions apply, e.g., some social housing and certain older agreements).
Once the assignment takes effect, the outgoing tenant stops being responsible for ongoing obligations, but remains liable for anything owed before that date. Put it in writing and have everyone sign (leaving, remaining, and incoming tenants). Also update the bond record within 10 working days.
Subletting — Is not an option!
Subletting means the original tenant moves out and on-rents to someone else, remaining responsible to the landlord. Your tenancy agreement forbids subletting. It is not an option and can get you into a lot of trouble.
What does Pride Property charge?
For a variation or assignment, Pride Property can recover actual, reasonable expenses and should provide an itemised breakdown (e.g., credit checks, document prep/admin time, any necessary advertising). The law is clear that blanket “assignment fees” without detail aren’t the idea—the costs must be reasonable and evidenced. If you can’t agree on what’s reasonable, either party can ask the Tenancy Tribunal to decide. Please contact us for the break down of charges.
Separate scenario: If everyone agrees to end a fixed term early (not assign it), a landlord can seek actual and reasonable re-letting costs—again, think evidence and itemisation.
Special note for periodic tenancies
If it’s a periodic tenancy and there are multiple named tenants, the landlord can treat one tenant’s notice as ending the tenancy for all. If the others want to stay, talk to the landlord promptly to arrange a variation or assignment.
Quick checklist for shared tenancies
Put all tenants who live there on the agreement (not flatmates) and understand your joint & several responsibilities.
If someone’s leaving, decide: variation (swap one tenant), assignment (transfer to a new group), or end early by agreement. Get it in writing.
Expect to cover reasonable, itemised costs for variations/assignments. Keep copies of invoices.
Update the bond and your payment split on the same day the change takes effect.
If you’re navigating a mid-tenancy change and want it handled cleanly (and fairly), Pride Property can coordinate the paperwork, vetting, and bond changes, and make sure everything aligns with the RTA. Reach out and we’ll guide you through the options.
By Sufiyan Juwle. Published on 16/10/2025.