Whether you’re a seasoned housemate or considering renting for the first time, splitting the costs of a multi-room property can be a smart and practical option for those looking to save.
Given the current pressures on housing affordability and rental shortages across Sydney, opting to house share above renting solo is no longer simply a choice for penny-pinching students.
It’s becoming a popular choice across generations, 2024 data shows – helping to tackle the rising cost of living, foster social connections, and provide the opportunity to live in a preferred location that otherwise might be financially unattainable.
But beyond splitting the bills and dividing the chores, what should you know about share housing? Here’s the facts and how to make it work for you.
What makes a share house?
Typically, in a share house situation two or more tenants will have independent bedrooms while sharing common areas such as living rooms, kitchen and bathrooms, depending on the type of property and what has been agreed by the landlord.
In NSW, the Residential Tenancies Act 2010 covers the following types of occupants:
- Co-tenants: Strictly those listed on the tenancy agreement for the premises
- Head tenant: Listed on the agreement, who sub-lets part of the premises under a separate agreement
- Sub-tenant: Those sharing with a head-tenant
Housemates will divide the costs and responsibilities, which is where things can get tricky without clear rules in place.
Know your lease.
Regardless of how and with whom you’re renting – for all to be set up for success, it’s vital that everyone understands and agrees to the terms of the tenancy agreement.
Is the lease fixed term or periodic? Are the names of all occupants listed on the agreement? Ensuring that everyone understands their responsibilities before moving in will make the process much smoother, particularly when challenges inevitably arise.
Lay down some (basic) house rules.
They don’t need to be extensive, but they can certainly be a lifesaver for keeping daily structure (and accountability!). For some, this might be as simple as:
- Nominating one housemate as a key contact person, primary decision maker or mediator
- Seeking permission before hosting or having visitors
- Keeping up a cleaning/chores roster and tidying up after yourself
- Setting expectations around communal food and groceries
- Deciding how bills will be paid (rent, gas, electricity, internet); e.g. each occupant pays their share into an account for landlord/property manager to withdraw from
Have a plan for changes in the tenancy – like someone vacating.
Life happens. Changes in work, lifestyle, relationships, health – the reasons for needing to end a lease agreement are many, so it’s crucial to have a game plan for when this occurs.
It’s important to know that no partial bond refunds can be given if a tenant decides to vacate before the lease expires. Additionally, the vacating tenant’s portion of the rent (and expenses) will need to be paid in their absence – and until another tenant is found and added to the lease, if intended.
For these reasons, choose your housemates carefully, and always have arrangements in place and agreements in writing. Doing so will make it much easier to establish clear protocols for any tenancy changes.
If you’re after more information about shared rentals (or looking for one!), be sure to get in touch with our experienced property managers and leasing professionals. We’ve got you covered – find your local office below:
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
