How do share accommodation agreements work?

Before entering a share accommodation agreement, you should understand the nature, advantages, and disadvantages of each situation.

Co-Tenancy Agreement

How does the agreement work?

• The landlord holds an agreement with 2 or more co-tenants jointly.
• Residential Tenancy Agreement for your state or territory must be used

Advantages

• Certainty and protection of using a Residential Tenancy Agreement.
• All co-tenants are regarded as equals.
• Responsibility for paying rent and meeting other obligations is shared between multiple people.
• Simplicity of one agreement between all the co-tenants and the landlord.

Disadvantages

• The Tribunal or Court cannot deal with conflicts between co-tenants. Co-tenants must solve problems themselves.
• All co-tenants are held liable for breaches of the agreement, even if only one co-tenant caused the breach.
• When one co-tenant wants to leave, the other co-tenants and landlord will generally need to find a new co-tenant to move in. The leaving co-tenant can help in this process.

Sub-Tenancy Agreement

How does the agreement work?

• Head-tenant holds agreement with sub-tenant. This is separate to the agreement between the landlord and head-tenant.
• Head-tenant takes on the roles and responsibilities of a landlord in relation to the sub-tenant.
• In share accommodation, the head-tenant and sub-tenant will usually share the same house, with the sub-tenant having their own room and shared access to facilities like bathrooms.
• Using a Residential Tenancy Agreement is highly recommended.

Advantages

• Agreement between head-tenant and sub-tenant means certainty and protection for all flatmates - rights and obligations are mandated by law if using a Residential Tenancy Agreement.
• If using a Residential Tenancy Agreement, the Tribunal or Court can deal with disputes between the head-tenant and sub-tenant.
• Head-tenant retains control of who lives at the house - only person who chooses flatmates and can ask sub-tenants to leave.

Disadvantages

• No direct relationship between sub-tenant and landlord. Any problems the sub-tenant has must be directed to the head-tenant.
• If head-tenant leaves, the sub-tenant must renegotiate a new agreement with the landlord if they want to stay at the premises.
• Head-tenant is responsible to landlord for damage to the premises, even if caused by the sub-tenant.

Common Law Agreement

How does the agreement work?

• All terms of the agreement can be decided between the landlord and resident - no specific rights and obligations are mandated by law. In this case, Flatmates.com.au recommends using the Flatmate Agreement, which sets out some basic terms.
• Common law agreements are most commonly used for very flexible arrangements where the resident rents a room with access to shared facilities.
• If more than one resident, each one has a separate agreement with the landlord.

Advantages

• High flexibility - can agree on house rules, shorter notice periods, and other terms for the specific circumstances.
• Landlord and residents can give very little notice of moving out if that is important for them - the law only requires that either party give ‘reasonable notice’ depending on the circumstances.

Disadvantages

• No rights and obligations are mandated by law - this creates uncertainty and a lack of protection for both parties.
• Agreement is only as effective as it is negotiated to be - this means that unless the landlord and resident thoroughly negotiate and write down terms for all aspects of the agreement, then it will be unclear how to resolve disputes.
• Tribunal or Court may not be able to decide disputes because of the lack of agreed terms - usually only claims for outstanding debts can be handled by the Court.

Registered Boarding/Rooming House Agreement

How does the agreement work?

• Most states and territories have special agreements for large, commercial boarding/rooming houses that have at least 3-5 residents (depending on the state or territory.
• The agreements usually provide for minimum standards and basic rights and obligations.
• Landlord will have greater control over the running of the premises - will generally have a right to access the resident’s room.

Advantages

• Tribunal or Court can decide disputes between the landlord and a resident.
• Minimum rights and obligations provided by law.
• More flexible for landlord and resident - can make house rules and residents can move in and out very easily.

Disadvantages

• Large boarding/rooming houses are often designed to specifically cater for very low-income renters and people with special needs. This will not suit many people looking for share accommodation.
• Shorter notice periods than tenancy agreements.

Back to What is my share accommodation situation?

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