Managing Shared Tenancies in Western Australia
Shared tenancies have become increasingly common in Western Australia’s evolving property market. They involve two or more independent tenants renting part or all of a property. Properly administering shared tenancies is crucial due to their complexity.
Types of Shared Tenancies
Shared tenancies come in various forms, including co-tenancy, rooming arrangements, and sub-letting agreements. The specific type of shared tenancy determines the management approach.
In a sub-letting arrangement, the “head tenant” assumes landlord responsibilities for the sub-tenant(s).
Bond Lodging
The bond requirements differ for each shared tenancy arrangement. For co-tenancies, a single bond should be lodged, listing all co-tenants’ names on the tenancy agreement. In rooming arrangements, individual bonds should be lodged for each tenancy agreement, specifying the part of the property being rented (e.g., Room A, B, or C).
Rent and Utilities
In rooming arrangements, tenants should receive separate invoices and receipts reflecting their individual shares of rent and bills. Co-tenants can receive joint invoices and receipts, as they share responsibility for payments. The method of collecting payments should be determined by a private agreement among co-tenants.
Repairs and Maintenance
Assigning liability for repairs and maintenance in shared tenancies can be challenging. Regular property inspections can help clarify responsibilities.
Certain repairs and maintenance tasks are always the lessor’s responsibility. If damage occurs in common areas due to negligence in rooming arrangements, the tenant responsible for the damage bears the cost of necessary repairs. If the responsible tenant is unclear, the property manager must determine it, possibly by consulting each tenant. Repairs and maintenance in private rooms or areas are the tenant’s responsibility.
In co-tenancies, all co-tenants share liability for any damage.
Changes in Tenancy During Lease Term Tenants in shared tenancies may want to move during the lease term, requiring lessor approval except in specific circumstances. If a tenant takes over a lease from another tenant, property managers must:
Issue an outgoing property condition report (PCR) for the departing tenant within 14 days of the tenancy’s end.
Provide an ingoing PCR for the new tenant within seven days of their occupancy.
Cooperate with vacating and remaining tenants to assess property condition, as the property is likely not vacant during inspections.
Recover any cleaning, repair, or maintenance costs from the vacating tenant’s bond contribution, if applicable.
Lodge a Variation of Security Bond form to update tenant details and adjust the tenancy agreement accordingly.
Allow tenants to settle bond monies privately when necessary.
Challenges in Shared Tenancies While co-tenancies reduce administrative burdens for property managers, they limit the ability to address breaches by individual co-tenants due to joint liability. Rooming arrangements offer a more flexible alternative to address such issues.