Renting out Two Spare Rooms

Brucey210 on 23/04/2018 - 16:53
Last edited 23/04/2018 - 17:52 by 1 other user

Hi OzBargain,

I am just after a little bit of advice from anyone who has done something similar.

Basically I own a 3 bedroom townhouse. I am currently living in one of the bedrooms and plan to rent the other 2 out.
As this is the first time I have ever done anything like this, I am a little confused about what the responsibilities of each party are (landlord/renter).

What is generally included in rent when renting a single room within a house? The tenants would have access to a shared bathroom, living areas, yard, kitchen etc.
Does a renters rent include bills? Water/Electricity/internet/strata etc? Or does the rent cover all of that.

As a landlord, what am I required to provide them? I have done some of my own research through some websites but its not really clear as to who pays what, unless it is agreed upon at the time the renter moves on, example to pay $200 a week rent plus splitting bills etc.

Any advice would be great!

• 

  Quantumcat on 23/04/2018 - 17:07

  -1

  It includes whatever you decide. Not strata though.

• 

  bobbified on 23/04/2018 - 17:18

  +1

  If you want to play by the rules, which I suggest you do, use this guide. There's links to the copy of the standard agreement in there for you to use:

  https://www.propertynow.com.au/rental-information/state-by-s…

  The most important thing is to clearly set out the conditions (within reason of course) and put everything in writing so that it's very clear to everyone before they move in and, that way, you have something in writing to refer to in case of a dispute.

• 

  ProBoDoBo on 23/04/2018 - 17:20

  +1

  Electricity Bills are usually split amongst the housemates because that's on the usage. Because internet bill is a fixed amount every month you can include that in the rent. So for instance, I pay $155/week and bills extra. I pay rent bi-weekly and bills whenever they come in. I've already given 4 weeks rent as bond when I moved in.

• 

  Baysew on 23/04/2018 - 17:52

  +5

  Don't lend them $10,000.

• 

  barbarella on 23/04/2018 - 18:16

  Ensure you consider insurance…some companies don't like insuring house and contents if the rooms are rented out to 'boarders'…eg. the 'boarder' might leave a laptop charging and burn down the property…you need to be covered for all situations, as insurance companies will find every way to get out of paying a claim :/

• 

  barbarella on 23/04/2018 - 18:21

  I have had 'boarders' in my spare rooms previously. I lived in a town where short term accommodation was needed (eg. backpackers working for 3-6 months only). My 'boarders' were mostly fantastic BUT there is always the occasional PITA ones that come along. At least with a short term they will be along their merry way soon…tra la la…. I would say beware of long term PITAes :P

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  ShannonN on 23/04/2018 - 18:23

  +1

  Generally you have to provide each "tenant" with a front door key, add locks to their room doors with keys for their security, perhaps furniture depending on rent?

  Post reasonable rules to keep peace like no more than 2 ppl in room (too crowded, sort out rules re smoking or not, use of kitchen, cleaning up after themselves. its not all beer & skittles.

  Most conflict comes from internet abuse by one party others go without set up router with mac addresses to limit quota?

  Noise can be a problem with ppl opening and closing doors at late times using all the water in a shower

  Good Luck

• 

  Brucey210 on 23/04/2018 - 18:52

  Thanks for all the advice so far guys! It is all extremely helpful!

• 

  [Deactivated] on 23/04/2018 - 18:55

  You would split most bills.

  As landlord you would be expected to pay for the full amount (ie these bills are not split) for:
  - rates
  - water fixed charges
  - building contents insurance

• 

  Make it so on 23/04/2018 - 19:00

  +2

  Be careful with sharing electricity, as it only takes one careless tenant to leave a 2,400W heater for 12hrs/day and you will end up with an electric bill you won't believe.

  Also ensure you spell out the rules in terms of cleaning, because my experience is that most tenants will try to get away with not worrying about it.

• 

  Illian on 24/04/2018 - 16:21

  +1

  I lived in a share house for a few years where the landlord lived with the tenants. The best thing to do is to make things as simple as possible. Include the utilities and internet in the rent amount you ask, this may be a bit trial and error at the beginning, but it will help enormously when you get the numbers right and the money side of things is smooth. Keep airconditioning/heating separate, during the months they wish to use them (if available and if they request to) charge extra rent per week, enough to cover heavy usage. Many landlords like to receive rent in cash, but this is 2018, who even uses cash I sure don't, I was the first to convince the landlord to accept bank transfer, which recently has been upgraded to be nearly instant with most banks so no fuss there. Never loan your tenants money or let them take advantage of your generosity or willingness to help, you must always keep a certain distance emotionally. Take thorough pictures of the condition of the rooms each time before a tenant moves in to compare when they move out for Bond purposes. Get an unlimited internet plan, if there will only be one fridge, give everyone dedicated space such as one internal and one door shelf each, don't try to share common foods such as milk it won't work. Be very strict about washing dishes and kitchen utensils etc in a timely manner. It will be difficult to get anybody to do cleaning, as nobody will feel as if they are responsible for it, either set up a regular agreed roster or hire a cleaner for an hour every week or two to save the trouble and/or pain. Have strict rules about noise, and also overnight guests, for example if they have a guest for more than two nights that guest must pay rent and be agreed to beforehand etc.

  Oh, and have everybody bring their own toilet paper to the toilet lol, I did this because I sure as hell wasn't going to help pay for the other tenants 3 rolls a week (and it wasn't even 4-ply anyway) when it takes me two months to use a roll.