Who actually lives here? Your share house legal status, explained.

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11 Jan 2022
5 min read

Who actually lives here? Your share house legal status, explained.

Here's something most people moving into a share house never stop to think about: everyone under that roof might have a completely different legal status. The housemate who found the place and signed the lease is in a totally different position to you. So is the person subletting from them.

It sounds dry — and look, it kind of is — but it has real consequences. Who gets to stay if things fall apart. Whether you can get your bond back. How much notice you need to give, or can be given. This stuff matters.

The four types

Type 1: Co-tenant

Your name is on the lease — along with one or more others. You're all equally responsible. Co-tenants are jointly and severally liable, which means the landlord can pursue any one of you for the full amount of any debt. You're directly protected by the Residential Tenancies Act 2010 and can't be removed without a Tribunal order.

Type 2: Head-tenant

Your name is on the lease and you've sub-let a room to someone else — making you their landlord. You have full tenant rights in relation to the property owner, but you're also responsible for your sub-tenant: lodging their bond with NSW Fair Trading, giving proper notice, and managing disputes.

Type 3: Sub-tenant

You're renting a room from someone who holds the lease, not from the property owner directly. You still have rights under the Residential Tenancies Act — but they run against the head-tenant, not the owner. You're entitled to 90 days notice to vacate during a periodic agreement, and you can take disputes to NCAT.

Type 4: Boarder / Lodger

You rent a room from someone (tenant or owner) who lives there and controls the whole property. This is the least protected arrangement — boarders and lodgers are not covered by the Residential Tenancies Act. Notice is informal (typically about a week if you pay weekly), and there's no requirement for your bond to be officially lodged.

How they compare on the things that matter

TopicCo-tenantSub-tenantBoarder / Lodger
Protected by tenancy law?✅ Yes✅ Yes❌ No
Bond lodged officially?✅ Yes✅ Required⚠️ Encouraged, not required
Notice to leave (periodic)21 days21 days~7 days (reasonable)
Notice to be asked to leaveTribunal order needed90 daysReasonable notice only
Disputes via NCAT?⚠️ Limited✅ Yes❌ No — try Community Justice
Rent receipts required?✅ Yes✅ Yes✅ Yes

Bond — where things get messy

Bond is the part of share housing that most people don't sort out properly, and it causes the most stress later. Each arrangement handles it differently.

Co-tenants

When one co-tenant moves out, the remaining housemates need to pay back their share within 14 days of request — minus anything legitimately owed. Use a Change of Shared Tenancy Arrangement form through NSW Fair Trading when someone moves on.

Sub-tenants

The head-tenant is legally required to lodge your bond with NSW Fair Trading and provide a receipt. If they don't, push back on this early.

Boarders and lodgers

There's no legal requirement to lodge your bond officially. Always get a written receipt for any bond money you hand over.

Homerun tip: Keep a record of every payment — rent and bond. Screenshots of bank transfers work perfectly. It takes 10 seconds and can save you weeks of stress down the track.

Moving out (or being asked to)

All co-tenants leaving together: 21 days notice to the landlord during a periodic agreement, or 14 days before a fixed-term ends.

One co-tenant leaving while others stay: Give 21 days notice to the landlord and to each other co-tenant. Once out by that date, they're legally off the hook.

Sub-tenant leaving: 21 days notice to the head-tenant (periodic), or 14 days before fixed-term ends.

Sub-tenant being asked to leave: The head-tenant must give 90 days notice during a periodic agreement.

Boarders and lodgers: Reasonable notice applies — typically around a week if you pay weekly. Get everything in writing.

Disputes between housemates

Here's a quirk that surprises people: NCAT generally can't resolve disputes between co-tenants. If two people are both on the lease and things go sideways, the Tribunal mostly won't step in. The best path for co-tenant conflicts is mediation through a Community Justice Centre — it's free, call 1800 990 777.

Sub-tenants have more formal options and can take certain disputes with their head-tenant to NCAT. Boarders and lodgers should contact their local Tenants' Advice and Advocacy Service.

Changing who's on the lease

When a co-tenant moves out and someone new takes their spot, the remaining tenants need written consent from the landlord to transfer the tenancy. If at least one original tenant stays, the landlord can't unreasonably refuse. If they do, you can apply to NCAT.

Homerun tip: Use a written Share House Agreement between housemates — even when it's not legally required. NSW Fair Trading has a free sample you can download.

Bills and shared expenses

Shared bills are a private arrangement between housemates — not part of the formal tenancy. If someone doesn't pay, you can pursue them in a Local Court. Having a clear bill-splitting system from day one saves a lot of friction.

This post is based on information from the Tenants' Union of NSW and applies to NSW, Australia. It is a general guide and not legal advice. For your specific situation, contact your local Tenants' Advice and Advocacy Service or NSW Fair Trading on 13 32 20.

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