Professionals Real Estate 
One of the options when you’re renting is to share a place with friends or housemates. This is common practice for young Australians but it raises the question of who should be named on the lease.
Here is what to keep in mind when you are signing a lease and how many people should have their names on the agreement.
Understanding lease agreements
First, a lease agreement is a legally binding document that delineates the terms and conditions of the tenancy of a rental property.
This contract outlines the rights and responsibilities of the landlord and tenants. When you sign the lease agreement as a tenant, you are legally promising to follow the conditions laid out in the document and maintain the property appropriately. Failing to do so can lead to refusal of bond release at the end of your rental period or, at worst, legal proceedings. It can also result in you being asked to vacate the premises.
Whoever has their name on the lease has equal responsibility for any damages or other issues, and is equally responsible for paying the rent on time and in full. So even if you and your housemate split the rent 25/75, you’re both equally responsible for making sure it is paid in full.
Who is on the lease?
The common practice in Australia is to list all adult occupants of the premises on the lease.
This includes every individual who is contributing to the rent and residing in the property. This will ensure that should any disputes arise, there is a legal framework to protect all parties.
If you choose to be the only person on the lease in a share house, you will be solely responsible for the actions of everyone in the house. As a consequence, you might find yourself with damage to pay for that was not caused by you.
On the other hand, if you are not on the lease, you have less legal protections. Because you are not an official tenant, you may not be covered by the landlord’s liability insurance.
Dynamic Living Arrangements: Managing Changes
For many younger Australians who rent shared properties, there is frequent change, and housemates come and go.
Technically, you are required to notify the landlord or property manager of any incoming and outgoing in the household so that the lease can be updated and everyone is protected.
If you are leaving a share house, make sure you reach out to your property manager to update the lease so you’re not responsible for anything that happens to the place after you go
What about the bond?
Where things can get complicated is in reclaiming the bond.
If someone who leaves early paid their share of the bond initially, then they will be likely to want that money back. Consider these issues from the start and discuss your action plans early so that you know what to do in this situation.
Often, the best choice is to ask the new tenant to pay their share of the bond and use that money to reimburse the housemate who is leaving.
Subletting
Some Aussie tenants sublet rooms in a rented property without the knowledge or consent of the landlord or property manager. However, if you do this, you must be aware that you are responsible for the actions of any other tenants you allow in the home. If they damage the property, they are not on the lease, so they have no legal obligation to repair the damages. This can leave you with considerable fees to deal with.
Some tenants have been in trouble in the past for subletting to Airbnb guests, so vet this with your landlord or property manager before you put a room up for short-term rentals as it may be a breach of contract.
To sum up, if you live in a share house or are planning to, make sure everyone is listed on the lease. It will make life much easier for everyone.
Leasing a home with the help of a quality property manager will make transitioning between housemates less stressful. You can reach out for help to update the rental agreement as the need arises.
Need advice about renting? Talk to one of our property management specialists today.
