Managing share house rent payments

It can be loads of fun sharing a house with a bunch of other people and it can be a fairly low-cost way of getting your independence. But there is a serious side to it as well, such as making sure everyone in the house keeps up to date with their rent.  Not paying the rent can make life stressful as you risk being evicted. 

Tips for getting the rent together

1. Make sure everyone’s on board with the idea that paying the rent comes first – no matter what!  This is especially important when you’re setting up a new house with people who haven’t lived in a house share before.

2. Find out when the rent is due. This is set by your landlord or real estate agent. It’s usually paid monthly, though can also be paid fornightly or even weekly.  It might be a good idea to stick a big note somewhere were you can’t miss it - like on the fridge, the TV, or the cat.

3. Find out how rent is paid. Rent is usually paid into your landlord’s or real estate agent’s bank account. If you are moving into an established house a system will usually be set up already, so you need to find out exactly how it works.

4. Try to put aside your share of the rent as soon as you get paid instead of waiting until it’s actually due because you might not have enough money left by the time it’s due.

It’s important to remember that anyone whose name is on the lease can be evicted and forced to pay any unpaid rent – it doesn’t matter who didn’t pay their share.  This is because everyone who signs the lease is “jointly and severally liable” meaning everyone is responsible.

How rent is paid

Rent can be paid individually or as a group, depending on what suits everyone in the house best. Different ways to pay rent include:

Direct debit/automatic transfer: this is where the money is withdrawn automatically from your account each rent day. You need to talk to your bank and work out how you can organize this. It’s a good option if you have a regular income.

At the bank: going into the agent’s or landlord’s bank and depositing cash or a cheque into their account. Some estate agents’ will give you a deposit book.

B pay: This is a card which has a bar code on the back that identifies your house. You can use this in post offices or set it up.

Paying as a group: Paying as a group means that one person collects the money from everyone else and pays the whole rent at once, using one of the ways described above. An option of making this easier is to set up a household account for rent payments with a bank or credit union.  The idea is that on pay day everyone deposits their bit into the household account so the rent gets paid in full and on time.  A household account gets even easier if everyone sets up an automatic transfer each pay day from their own account into the household account. 

Many banks have fee-free accounts and if you are a student there are often special deals. It’s usually a good idea to open the account in the names of everyone in the house, but remember to change the account names and signatories when anyone moves in or out. Another good tip is to set it up so that at least two people have to sign to take money out – not just one person.

What to do if you do miss a rent payment

In extreme cases very late or missed rent payments can annoy your landlord and may lead to legal action to evict you.  It is possible to fix things up though, so it’s important to keep calm and find a way to pay the rent as soon as possible. Here’s some tips if you have late or missed rent payments.

If the money is coming in, let your landlord or agent know when you’ll be able to pay them. Give them a firm date and chances are they’ll agree to wait. If you only have some of the money now, work out how much you can afford to pay to catch up the extra every payday. Then write to your landlord or agent explaining your offer to pay. Your letter should say how much money you will pay now and say firm dates for the amounts you will pay until you are up to date. Ask them to hold off action. Keep a copy of the letter – it’s proof that you tried to do something about the problem.

Try not to make any promises unless you know you can deliver! The landlord or agent may not stick to their side of the agreement if you break yours. 

If your landlord does decide to take legal action, it’s important to make sure that you are well informed.  It’s a good idea to vist the tenants union or a local community legal service to get some advice. The legal processes vary in different states so the best thing to do is to seek some advice. There are some contact details for different organisations that can help you at the bottom of this fact sheet. 

More information

Victoria

Financial & Consumer Rights Council - (03) 9663 2000 or 1800 134 139

For assistance to mediate a dispute in your household:
Dispute Settlement Centre - (03) 9603 8370 or 1800 658 528

Tenants Union Victoria - (03) 9416 2577
Web: www.tuv.org.au

New South Wales

Consumer Credit Legal Centre - 1800 808 488

Financial Counsellors Association of New South Wales  -  02 9551 5559

Tenants Hotline New South Wales - (02) 9251 6590
Web: www.tenants.org.au

Queensland

Tenants Union Queensland - (07) 3257 1108 or 1300 744 263 

This service is available 9-4 M-F and till 7 pm Tue and Wed.

Web: www.tuq.org.au

 

South Australia

Office of Consumer & Business Affairs Tenancies - Tel: (08) 8204 9544

Adelaide Central Mission - (08) 8202 5180

Para Districts Community Legal Service (08) 8281 6911

Northern Territory

Darwin Community Legal Service - (08) 8941 3394
Web: www.dcls.org.au

Darwin Legal Aid Commission - (Darwin) 08 8999 3000 (Katherine) 085 8973 8704 (Alice Springs) 08 8951 5377

Resolve (Anglicare Northern Territory)
(08) 8985 0000 or 1800 898 500

Australian Capital Territory

Tenants Union ACT - (02) 6247 2011

Care Financial Counselling Service - (02) 6257 1788

Tasmania

Tenants Union Tasmania - (03) 6223 2641 or 1300 652 641

Anglicare Financial Counselling Service - 1800 243 232 or 03 6234 3510

Consumer Credit Helpline Hobart Community Legal Service - 1800 232 500

Western Australia

Tenants Advice Service - (08) 9221 0088 or 1800 621 888

Financial Counsellors Resource Project - (08) 9221 9411

Consumer Credit Legal Service - (08) 9221 9411

Financial Counsellors Association of Western Australia - (08) 9325 1617

 

Acknowledgments

This fact sheet is based on the Debt Suxs Info sheets written by Financial Counsellor Jenny Lawton and published by the Youth Affairs Council of Victoria.  For more information see www.yacvic.org.au