Share houses and co-tenancies
Share houses (when 2 or more tenants share the property and the costs) can be organised in different ways:
- the tenants can all be co-tenants, they all sign the tenancy agreement and are all responsible under the tenancy agreement. On the Bond Lodgement (Form 2), it should be indicated the amount that each person has contributed to the bond and each person should sign it;
- there can be one or more head tenants, and subtenants who rent from them. In this situation, the head tenant is responsible to the lessor/agent under the agreement, and the sub-tenants are responsible to the head tenant under a separate tenancy agreement. Only the head tenant will sign the tenancy agreement and Bond Lodgement (Form 2) with the lessor/agent;
- the tenants may be boarders or lodgers. In this case, only the part of the law that relates to bonds will apply.
If any co-tenant who has contributed to the bond moves out, a
Change of Shared Bond Arrangement (Form 6) will have to be completed. This shows the RTA the new distribution of who has contributed to the bond. The lessor/agent also needs to sign this form. The RTA does not usually refund bond money until the tenancy has ended, so the tenant moving out is usually paid their share of the bond by the other tenants, or by the new tenant moving in.
Legal responsibilities for a co-tenant
Under a tenancy agreement, co-tenants mean that each hold an equal share of the tenancy. Each co-tenants is legally responsible for all the responsibilities in the agreement.
For example, if 3 people are co-tenants in a share house and one of the tenants dies, that tenant's share of the bond will belong to their estate, not to the 2 tenants who are left. If one tenant dies or leaves owing money for rent or damages, the other tenants are each responsible for the whole of the rent and damages.
Permission required for sub-tenants
If the tenants want a sub-tenant to move in, they need to get written permission. The tenants should write to the lessor/agent explaining who they want to move in and when. The lessor/agent should then give their permission in writing. The lessor/agent cannot unreasonably withhold their permission but they might want to meet the new tenant.
The relationship between a head tenant and sub-tenant is the same as the relationship between a lessor/agent and tenant. If the head tenant accepts a bond from a sub-tenant, it must be lodged with the RTA within 10 days. The head tenant must also have a written agreement and complete an
Entry Condition Report (Form 1a) with a sub-tenant.
Contributions to the rental bond
All bonds must be lodged with the RTA, including bonds that one tenant pays to another tenant when they move into a share house, and bonds from head-leases. In a share house, the head tenant is responsible for lodging the bond of a sub-tenant. It is against the law for a head tenant not to lodge a sub-tenant's bond with the RTA.
Further Information
Last Updated: 20 August 2009
