Sharing a rental can make renting more affordable, particularly in a market where vacancy rates are low and rents have been rising. With Charles Sturt University, Defence and a steady stream of new workers, share households are common in Wagga Wagga. But the way you are set up on the lease matters, and it affects your rights and responsibilities if something changes. This guide is general information only, and NSW Fair Trading publishes the current rules.
Co-Tenants and Subtenants
There are different ways to share a rental, and each has different consequences.
Co-tenants are all named on the same lease with the landlord or agent. Each person has a direct relationship with the landlord and shares the rights and responsibilities of the tenancy.
Subtenants rent a room from someone who holds the lease. The subtenant’s agreement is with the head tenant, not the landlord. In NSW, subletting generally requires the landlord’s written consent, and a tenant who sublets without consent may be in breach of the lease.
Boarders and lodgers have a different arrangement, usually living in the owner’s home, and are covered by different rules.
Joint Responsibility for Rent and Damage
When several people are named on the same lease, each person is generally responsible for the whole rent, not only their share. If one housemate stops paying, the landlord can look to the others for the unpaid amount. The same applies to damage and other breaches. This is called being jointly and severally liable, and it is the most important point to understand before signing.
The Bond
Rental bonds in NSW are lodged with the government’s bond authority, and there is generally one bond per tenancy rather than one per person. If a housemate moves out and a replacement moves in, you will need to sort out the bond between you. Do this in writing, and notify your agent so the records are correct. At the end of the tenancy, the bond is refunded according to the claim process, and all tenants generally need to agree to the claim.
When a Housemate Leaves
If one co-tenant wants to leave, the lease does not automatically end for the others. The remaining tenants may still be bound by the lease. Options include finding a replacement with the landlord’s agreement, negotiating a change to the lease, or ending the tenancy if all parties agree and the notice rules are followed. Speak with your property manager early, because landlords have to consent to changes in who is on the lease.
Adding a New Housemate
Adding someone to the lease generally needs the landlord’s or agent’s agreement. Even if there is no restriction on additional occupants, you may need approval if the number of people changes significantly. It is also wise to check the lease for any limit on the number of occupants.
Setting Up a Household Agreement
A simple written household agreement can prevent many disputes. It is not a replacement for the lease, but it can cover matters such as how rent and bills are split, cleaning, guests, quiet hours, pets and what happens if someone moves out. Agree on how you will share costs for utilities and internet, and consider setting up a shared account or an app to track payments.
Applying for a Rental as a Group
Agents often assess each applicant individually, so each person may need to supply identification, proof of income and references. A strong group application can make a difference in a competitive market, particularly when vacancy rates are low. Be honest on applications, and be ready to move quickly when a suitable property is available.
Resolving Disputes
If housemates cannot agree, talk early and keep a record. If the issue affects the tenancy, such as unpaid rent, speak with your property manager. NSW Fair Trading provides information and dispute resolution for tenancy matters, and the NSW Civil and Administrative Tribunal can hear certain disputes.
Frequently Asked Questions
If my housemate doesn’t pay their share, do I have to cover it? If you are on the same lease, you may be responsible for the full rent. This is why it is important to choose housemates carefully and keep communication open.
Can I sublet a room? Generally only with the landlord’s written consent. Subletting without consent can breach the lease.
Do we each pay a separate bond? Usually there is one bond for the tenancy. Housemates should agree between themselves how it is split and what happens when someone leaves.
Can I leave the lease if my housemate leaves? Not automatically. The lease may continue for the remaining tenants, and ending it requires agreement and following the notice rules.
Do landlords need to approve new housemates? Generally yes, if a new person is joining the lease or if the lease limits occupants. Always check with your property manager.
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This article is general information only. Please confirm current requirements with NSW Fair Trading.
