What is my share accommodation situation? - Northern Territory

Understanding which laws apply to your agreement will help you know your rights and obligations. Flatmates recommends using residential tenancy agreements in most share accommodation situations.

What are the different types of share accommodation agreements?

In the Northern Territory, there are 2 legal categories of agreement that can cover share accommodation. Knowing which one should apply to your situation is essential for understanding what the relevant rights and obligations are.

What type of agreement applies to my situation?

In the Northern Territory, there are 5 common share accommodation situations. Different types of agreements apply to each situation. In most cases, a residential tenancy agreement should be used.

The 5 situations are:

1. Landlord rents entire property to single tenant

Type of Agreement: Residential Tenancy Agreement

This is the standard rental situation where one tenant rents an entire property (i.e. a house or apartment) from the landlord. Northern Territory tenancy law will automatically apply.

In this situation you should always use the standard form Residential Tenancy Agreement and the Bond must be held in trust by the landlord in a secure bank account.

2. Landlord rents entire property to multiple co-tenants under one agreement

Type of Agreement: Residential Tenancy Agreement

This is common in share accommodation arrangement, where a group of co-tenants are listed on a single tenancy agreement. This situation is the same as a single tenant renting a whole property.

In this situation you should always use the standard form Residential Tenancy Agreement and the Bond must be held in trust by the landlord in a secure bank account.

All co-tenants jointly share the same rights and obligations under the tenancy agreement. The division of rent is a matter of agreement between the co-tenants, but all co-tenants are jointly liable for the whole of the rental amount and any damages that occur to the property.

If an existing tenant (or co-tenants) wants to add another person to the agreement as a co-tenant, they must gain the landlord’s written consent. The landlord cannot withhold consent unreasonably. Usually the landlord can only refuse consent if adding a new co-tenant would result in over-crowding or a breach of the tenancy agreement. Once the tenant seeks the landlord’s consent, the landlord has 28 days to refuse. If the landlord does not refuse consent in 28 days, then they are assumed to have consented to the co-tenancy.

3. Landlord runs a boarding house for 3 or more people

Type of Agreement: Residential Tenancy Agreement

When the landlord runs a boarding house with 3 or more residents, then residential tenancy agreements must be used. The landlord, the landlord’s family, and a caretaker employed by the landlord do not count as residents.

In this situation, the resident (boarder) will usually occupy a room and have shared access to facilities such as bathrooms, laundries, or kitchens with other boarders.

In this situation you should always use the standard form Residential Tenancy Agreement and the Bond must be held in trust by the landlord in a secure bank account.

4. Sub-tenant rents a room from a head-tenant, with access to shared facilities

Type of Agreement: Residential Tenancy Agreement (recommended) or common law agreement (suggested: Flatmate Agreement)

This is another common share accommodation situation. The landlord rents the entire premises to the head-tenant under a residential tenancy agreement. The head-tenant then rents part of the premises to the sub-tenant. Under the sub-tenancy agreement, the sub-tenant usually has exclusive use of a bedroom and shared use of facilities like bathrooms and kitchens with the head-tenant.

The agreement between the head-tenant and sub-tenant can be classified as either a residential tenancy agreement or a common law agreement, depending on the exact circumstances. Flatmates strongly recommends using the standard form Residential Tenancy Agreement.

In this situation, the head-tenant is in effect the landlord to the sub-tenant. The agreement should clearly state the areas of the house that the sub-tenant has exclusive use of (e.g. bedroom) and shared use of (e.g. bathrooms, kitchens). Before the head-tenant can sub-let to a sub-tenant, they must gain the written consent of the landlord. The landlord cannot unreasonably refuse to give consent. Usually, the only reason the landlord can refuse consent is if the sub-tenancy would result in overcrowding of the premises or a breach of the tenancy agreement with the head-tenant. Once the tenant seeks the landlord’s consent, the landlord has 28 days to refuse. If the landlord does not refuse consent in 28 days, then they are assumed to have consented.

5. Live-in landlord rents rooms to 1-2 people on separate agreements, with access to shared facilities

Type of Agreement: Residential Tenancy Agreement (recommended) or common law agreement (suggested: Flatmate Agreement)

This is another common share accommodation situation. In these circumstances, the landlord lives at the premises and rents rooms to 1-2 people on separate agreements. Under each of these agreements, the tenant usually has exclusive use of a bedroom and shared use of facilities like bathrooms and kitchens with the landlord (and other tenants).

Each of the agreements can be classified as either  a residential tenancy agreement or a common law agreement, depending on the exact circumstances. Flatmates strongly recommends using the standard form Residential Tenancy Agreement.

In this situation, it is important that the agreement clearly state the areas of the house that each tenant has exclusive use of (e.g. bedroom) and shared use of (e.g. bathrooms, kitchens).

Back to What is my Share Accommodation situation?

---