If you’re considering moving into a rental property with friends, there are tried and true rules of engagement to ensure you’re still best buddies at lease end. 

Firstly, discuss and decide whose names will be on the lease. Will everyone be listed as a tenant, or will there be a head tenant? If your name is on the lease, you’re equally responsible for rent payments. If your roommates fail to pay, it affects your rental history too, even if you maintain your end of the bargain with rent payments every week. So, before signing up for a rental property, ensure your potential roommates are reliable and financially stable. Trusting that they can consistently pay their share of the rent is crucial.

It’s often best for all tenants to make individual rent payments to avoid confusion or disputes. However, ensure everyone understands that if one person fails to pay, it impacts all roommates. Also, as a collective, determine the right frequency for rental payments with the property manager. One housemate might receive a weekly wage, while another roomie gets his or her salary paid fortnightly or monthly.

Next, clarify that everyone has an obligation not just for the rent but also for utilities such as electricity, internet, and water. Decide how these costs will be divided and ensure everyone agrees. Discuss how rooms will be allocated. If someone gets a bigger room or an ensuite, should they pay more rent? It’s often fair to base rent divisions on room sizes or access to amenities. Likewise, if one of the tenants works from home regularly, factor this into how the utility bills are divvied up. Agree before signing a lease agreement on a fair way to split these household expenses.

Understand the bond arrangements. In some states and territories, the bond isn’t refunded until the end of the tenancy. For example, if a rental property is vacated early in New South Wales, the bond is only refunded at the end of the agreed tenancy period. This means you’ll need to sort out the bond repayment among yourselves if someone leaves early. If a new tenant moves in, they should pay their share of the bond to the departing tenant, assuming the outgoing roomie has left behind no outstanding damage. If no one moves in, the remaining tenants should consider reimbursing the departing tenant, as they will receive the bond at the end of the tenancy, provided there are no damages.

Consider the turnover of tenants. High turnover can be a hassle for landlords and property managers, so in some cases, having one or two head tenants might be preferable to manage the lease and relationships.

Nothing tears rental households apart faster than arguments about cleaning. Moreover, keeping a rental property clean is the responsibility of tenants and is stipulated in the tenancy agreement with the landlord. So, before you move in with buddies, be sure to agree to a schedule that ensures every flatmate does their share of the cleaning and tidying – and the cooking, for that matter. Rules about guests and partners staying over is another must, and at what point, the household extras must start to pay some rent. Also, if a partner of a roommate joins the household permanently, this tenancy change must be communicated to your property manager.

Having transparent and open discussions about these points before moving in together can help prevent misunderstandings and ensure smooth living arrangement.

Your local Raine & Horne Property Manager is always there to guide and support you. Don’t hesitate to contact them for tips on ensuring a shared rental property runs smoothly.