How It Works
The current Tenant Lists the Unit
A tenant who wants to pass down their lease for a future term, ahead of what apartments are actively leasing for, offers their apartment rights with Lease Exchange.
Lease Exchange will offer potential tenants the available units for the future lease term.
Interested renters will bid or buy out the right to lease the unit for the future term.
Upon current and future tenants agreeing on a premium for the rights to the unit for the future term, Lease Exchange will collect payment from the future tenant upon signing the agreement to reassign the unit after the current tenant resigns.
Payments for lease transfers are securely held in escrow. Funds are only released once all parties, including the landlord, have signed off on the agreement. Eligible refunds are processed according to our policy if an agreement cannot be completed.
All lease transfers require approval from the property manager. If a landlord denies a reassignment, the Current Tenant may find another Future Tenant or cancel the process. Lease Exchange does not influence landlord decisions.
When the agreement has been signed by the current tenant, future tenant, and property management, Lease Exchange will pay the current tenant the agreed-upon premium minus operational fees to be paid to Lease Exchange.
Once the current tenant is offered the ability to resign their unit for the future term, the current tenant will sign and then reassign the unit to the future tenant for the future term.
Once the pass down is confirmed, the current tenant will move out at the end of their active lease. The future tenant will then move in and assume their new apartment unit.
How it works for current tenants:
Create a Listing – Describe your apartment, rent, and future lease period.
Negotiate Terms – Set a buyout price for future tenants to purchase the rights for the future term.
Sign the Agreement – All three parties sign to finalize the lease reassignment / pass down.
Receive Your Premium Payment – Funds are held in escrow until landlord approval and the Lease Exchange agreement is signed by all parties.
Pass Down the Unit – Lease pass-down agreements should be completed before the property management offers resigning to active tenants.
How it works for future tenants:
Browse Listings – Find apartments that match your budget & lease terms.
Negotiate a Deal – Bid or buy out the rights to a unit held by the current tenant.
Rent Rates - Future tenants acknowledge that rental rates are set by property managers and may change before the lease term begins. Future tenants agree to a fair market increase in rental rates for the agreed unit.
Sign & Pay – Sign the Lease Exchange agreement & pay the premium, which will be securely held in escrow until all required approvals and signatures are obtained.
Get Landlord’s Approval – Ensure you meet lease qualifications with the apartment management.
Sign the Lease – Sign the reassignment/sublet lease for the future term with the apartment.
Move-In – Start your lease hassle-free with housing security available earlier than ever before.
How it works for property management:
Review Requests – Receive Lease Exchange agreement requests and tenant applications for approval.
Screen Future Tenants – Conduct standard background, credit, and rental history checks as needed.
Approve or Deny – Approve qualified tenants or reject applications based on leasing criteria.
Adjust Rent Terms – Set rent rates and ensure any market-based increases are reflected in the reassignment.
Finalize Lease Transfer – Complete the necessary lease reassignment with all parties.
Maintain Compliance – Retain full authority over lease terms, tenant qualifications, and community policies.