Do you allow tenants to swap units?

Question

All - what is your typical policy and requirements for tenants who want to switch and move into an upcoming vacant unit that is 1) the same size/ bedroom count or 2) a different size/ bedroom count?

Does your policy differ if their current lease is still in flight (e.g., has 6+ months remaining) versus one that is about to expire in time for the vacancy?

Thanks in advance.

Theresa Harris · Answer

If the units are the same and in similar condition, then why not? I may charge a fee as you will have to do extra cleaning to the unit they are moving out of. If the new unit is bigger or updated, then I'd let them know what the new rent would be.

Matthew Morrow · Answer

@Kadia Lawrence I'd treat it like a new lease on the new unit, with a fresh look at their payment history and a walk-through of the unit they're leaving. The part people forget is that you now have the old unit to turn over instead of the one you were already planning for, so I'd make sure the move actually saves you something. If they have six months left, I'd probably still say yes for a good tenant, but put it in writing with a new lease and an agreed condition on the unit they're leaving. Keeping a good tenant is usually worth a little hassle. Hopefully it works out without too much headache.

Jaimee LaTorra · Answer

If you do a fresh lease on the new unit, set the term so it ends in a month when units rent fast in your area, which is usually spring or early summer. In Pittsburgh especially, a transfer is a free chance to get a tenant off a November or December renewal so you're not relisting in the middle of winter later.

The other thing I'd do is write the transfer rules down once and use them for everyone who asks: how long they've been a tenant, the payment history bar, an updated application, who pays the turnover on the old unit, and whether the deposit moves over or gets refunded after the move-out inspection. Deciding case by case gets messy fast, especially in a building where tenants talk to each other. Are these mostly same-building requests or across different properties?

Daniel Jung · Answer

We allow it, and honestly I would rather keep a proven tenant in the portfolio than gamble on a stranger. My conditions are simple. The tenant has to be current on rent with a clean recent payment history, and we walk the current unit before approving anything, because the condition they leave it in tells you what the new unit will look like in a year.

On paper we treat it as a new tenancy for the new unit: fresh lease, new deposit settled against the old unit only after the walkthrough, and income rechecked if the rent goes up.

Timing matters most. A swap at renewal is easy. Mid-lease, I only do it when the old unit will re-rent quickly, and we agree on the turnover costs in writing before anyone packs a box.

Mackaylee Beach · Answer

We typically allow this option at the time of renewal. Tenants are required to undergo our complete screening process once again.This ensures that all information is up to date and that the tenant continues to meet our requirements.

Ryan Brown · Answer

@Kadia Lawrence, you've gotten great advice on the process here. For me, the yes or no comes down to the tenant more than any policy.

If it's a great tenant I value and want to keep, someone who pays on time, takes care of the place and doesn't cause problems, I'm much more likely to let them move. A tenant like that is worth a lot. If they want a bigger or smaller unit and I say no, there's a good chance they find it somewhere else and I lose them anyway. Then I've got the turnover, the vacancy and the risk of a new tenant I don't know yet. Letting them move keeps a proven tenant in the building, and it's usually cheaper than replacing them.

I get David's point about having two units to turn instead of one. But if a good tenant is ready to move either way, you're turning their unit at some point regardless. The question is whether they move into your vacancy or someone else's.

If it's a tenant I'm lukewarm on, or one who's been late or rough on the unit, I'm a lot less flexible. I'm not going to reward that with a new unit, and if they want to leave, that might not be the worst outcome. Everything else people mentioned, like requalifying for the new rent, walking the old unit and getting the paperwork right, still applies. But whether I say yes in the first place mostly depends on who's asking.

David M. · Answer

I've had tenants request this before but I don't do it. If I did, I'd have 2 apartments to clean, paint, fix damage, etc. instead of one. I'm a small scale investor, so having an extra unit to prep for a new tenant is more time and money than I want to spend.

Kadia Lawrence · Answer

@David M. yes, that is my major consideration too. Effort and am not seeing the upside for a brand new tenant that has little history/ proof points. Nevertheless, it brought up a larger policy question beyond just this situation.

Drew Sygit · Answer

We do it all the time.

PROCESS:1) They have to have an acceptable payment history and be someone we want to keep!

2) They have to submit an updated application & docs

3) If they qualify, they can transfer.

CHALLENGE: they all want to transfer security deposit, which we do NOT allow. We require new SD and refund previous SD after we complete MoveOut Evaluation.

Kadia Lawrence · Answer

Ah, that makes sense. Thanks very much @Drew Sygit

Do you allow tenants to swap units?

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