Tips

1. What is "joint and severable"

This is the most important thing to know if you and your flatmates jointly signed the lease.

Almost all leases will include a clause that outstanding debts are "joint and severable" between those listed on the lease. It doesnt matter who has or hasn't paid rent. Any outstanding debt can be collected from all OR from any ONE of the flatmates.

Example: Jane pays rent every month. Her flatmate John says he has... but is really months behind. Both are named on the lease. The landlord has the right to collect all of the money owed from Jane and John, or just John OR just Jane. They can't collect more than they are owed - but they can collect it from anyone in full listed on the lease.

Lessons:
Make sure you know if your flatmates really are paying their rent in full.
Know the name and phone number of your real estate agent.
Call them regularly to check you are completely up-to-date.
There can be advantages in not being listed on the lease.

2. Why is our real estate agent billing us for more rent than quoted?

This is a really common confusion: You are quoted $300 a week. Great. So the monthly rent should be $1,200 right?
But then the realestate agent sends a bill for $1,303.57. What is going on?

The problem is there isn't exactly 4 weeks in a month (nor are there exactly 52 weeks in a year. Good news -there are exactly 12 months in a year). See below

3. How to calculate rent

Step one is to translate your rent into a DAILY rent.
Eg $300 divided by 7 days = $42.86 per day

Step two is to calculate yearly rent. There are 365 days in a year, so the yearly rent is...
365 x 42.86 =$15,642.90

Step 3. There are exactly 12 months in a year, so the monthly rent is...
$15,642.90 divided by 12 =$1,303.57

4. Applying for a credit card - before or after I move?

Moving changes a lot of things. Here's one that people often aren't aware of.

When you apply for a credit card or personal loan, most financial institutions include how long you have been at your current address when assessing you. The assessment is done by a software programme not a person. The shorter time you have been at an address, the worse it scores your risk.

"Two weeks at current address" will seriously decrease your chance of getting approval. And NOT getting approved goes on your credit record - and is viewed by other financial institutions as not good... So the lesson is, if you think you will apply for credit in the next 12 months, it's a lot better to apply BEFORE you move.

5. Insurance

If you have property insurance, you need to let your insurance agent know that you have flatmates. Often they require all residents to be included on the policy [last point not confirmed]

6. More advice on sharing and renting issues

NSW:
The NSW Dept of Fair Trading has a lot of resources for tenants and renters.
Plus the Redfern Legal Centre has a terrific site called The Share House Survival Guide. This worth looking at no mattter what state you live in (just check any legal advise applies to your state)
VIC:
Youth Central has a very comprehensive accommodation renters advice section.
QLD:
Try the Residential Tenancies Authority (a State government organisation). Also check out the Tenants Union of Queensland site.
WA:
Visit the Tenants Advice Services's site for rental and tenants advice in Western Australia.

What else are great renting / sharing tips?

Send us your tips via the feedback & ideas page.

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