Understanding The Replacing a Tenant Process
This form is used to replace an existing tenant with new tenant. All sub-leasing must have:
1. Written approval by Philadelphia Real Estate.
2. Approval by all current tenants.
3. Approved application from Philadelphia Real Estate.
When a new tenant is added to an existing lease they are now legally responsible for the terms of the lease along with the current tenants. Please be aware that security deposit refunds are dispersed in equal amounts to all tenants named on the lease.
What the Current Tenant(s) Must Do:
- Make sure that you have a copy of the “Move-In/Out Inspection Form” that you and/or your roommates completed within 10 days of taking possession of the unit. This form lists any existing damage to the property. This will help you and the new tenant determine a fair transfer of the security deposit.
- Notify the new tenant that he/she MUST submit an application to our office in order to move into the rental property. There are no exceptions, and you can’t do this for him/her. The new tenant must apply and must be approved before moving into the rental property.
- The new tenant and all current tenant(s) must sign on page 2 of this form.
- Fill out the top section of page 3 of this form. This is to document any security deposit transfer between you and the new tenant. All current tenant(s) must sign. The new tenant must fill out the bottom section. The new tenant is to pay their portion of the security deposit directly to the current tenant(s). When you move out the security deposit will be returned in equal parts to all residents named on the lease directly from our office. There are no exceptions to this policy. (See page 2 for more information regarding security deposits.)
- Submit the completed and signed form to our office and pay a $150 processing fee (check or money order only) to Philadelphia Real Estate. No paperwork will be processed until this fee is paid. No cash accepted.
What the New Tenant Must Do:
- Completed Online Rental Application.
Fill out the rental application completely and submit online. Pay application fee. Any application that is not completed will not be processed. ALL STUDENT APPLICANTS MUST INCLUDE COSIGNER INFORMATION ON THEIR APPLICATION. We will not accept any applications without this information.
- Processing Fee
There is a $150 NON-REFUNDABLE fee. You can pay online or drop off money order, certified check or cash to our office. THIS IS NON REFUNDABLE CHARGE AND WILL NOT BE REFUNDED FOR ANY REASON EVEN IF YOU DO NOT QUALIFY FOR THE PROPERTY. We will not process any application until the processing fee is paid.
- Smart Moves Tenant Report.
Once we receive your processing fee, go to FerraroProperties.com and click on the “Rental Applicants” tab then the “Credit Check By My Smart Moves” tab. Please follow the instruction and set up an account. This will allow us to run a credit check and criminal history report for each applicant. Once the information is reviewed we will notify you if you qualify for the property after we review all the information that we requested.
- Copy of Driver’s License or Government Issued Identification
Make a legible copy of driver’s license or government issued identification (picture required). We need a color copy of the document, so if you fax it please make sure it is a color copy or color scan an email to rentals@ferraroproperties.com.
- Proof of Income
Send copies of paychecks or other sources of income that was stated on the rental application. (One month’s)
- Return to Philadelphia Real Estate
When all information is obtained please email it to rentals@phillrem.com
- You and all current tenant(s) must sign on page 2 of this form.
- Make sure you receive a copy of the existing “Move In/Out Inspection” form for the property from the current tenant(s).
This form was filled out by the current tenant(s) when they moved in, and it lists any damage to the unit noted at that time. This will help you and the current tenant(s) determine a fair transfer of the security deposit.
- Fill out the bottom section of page 3 of this form. This is to document any security deposit transfer between you and the current tenant(s). You are to pay your portion of the security deposit directly to the current tenant(s). When you move out the security deposit will be returned in equal parts to all residents named on the lease directly from our office. There are no exceptions to this policy. (See page 2 for more information regarding security deposits.)
Understanding Security Deposit Transfers
When the current tenant(s) moved into the rental property, they paid a security deposit directly to Philadelphia Real Estate That security deposit is for the entire property, not specific bedrooms within the property. Therefore, it is our responsibility to hold one complete deposit for one whole property.
When a tenant is added to an existing lease before the lease period expires, the new tenant may also pay a security deposit. However, they pay it directly to the current tenant(s), allowing us to keep the original security deposit intact. When the lease period is up and all tenants move out of the unit, everyone, including the new tenant, will be refunded their portion of the security deposit; remember the security deposit will be dispersed in equal parts to all tenant(s). This will come from our office, and will be returned to you within 30 days of receipt of your keys to the property, or the end date of your lease, which ever is later.
Because the new tenant pays a security deposit to the current tenant(s), the new tenant must make absolutely certain that any existing damage to the unit has already been noted before moving into the property. Otherwise, the new tenant could end up paying for damages caused by the current tenant(s). Remember, signing the Adding a Tenant form makes you responsible for the terms of the lease. Ask questions if you’re in doubt about any part of this process!
