Sharehouse sub-letters get savvy amid rental crisis

As sharehouses become more popular post housing crisis, head renters are enforcing verbal contract agreements with harsher penalties.

Welcome to Sisters In Law, news.com.au’s weekly column solving all of your legal problems. This week, our resident lawyers and real-life sisters Alison and Jillian Barrett from Maurice Blackburn help a housemate understand her bond dilemma.

QUESTION: For the past six months, I’ve been renting a room in a share house that the original renter was subletting. I’ve now found a new place and given two weeks’ notice, but he is demanding four weeks’ notice and says he will not give me my bond back, even though I’m not on the official lease. Can he get away with this? – Marie, Vic

ANSWER: With the competition for rental properties at an all-time high, share house arrangements are becoming more popular, particularly for short-term stays until long-term options become available.

The precise arrangements between yourself and the original renter are not quite clear so some of this advice will be generic.

The rental crisis means share house arrangements are becoming more popular. Picture: iStock

It is also unclear as to whether you had a written or verbal agreement with the original renter to sub-let the room.

It is best to have a written agreement, however even if it was verbal, you and the original renter still have rights that can be enforced.

In a share house arrangement like the one you are in, there will be a ‘head’ renter (or the original renter as you have described him) that takes on all the responsibilities of a landlord and who has obtained permission to sublet.

Usually, a rental agreement will be either for a specified period of time (also known as a short-term agreement) or an open-ended agreement (one that does not have an end date). This is also known as a periodic (month-to-month) agreement.

If your agreement was for a specific period of time, say 12 months, and you are wanting to end the agreement early, then you are breaking the lease and you will likely be responsible for paying the rent until a new tenant is found and any other associated costs (like advertising for new tenants).

You can obviously move out before the end of the notice period. Picture: iStock

However, if the subletting agreement was not for a set period, or it was for a period that has now expired, you need to provide 28 days’ notice.

You can obviously move out before the end of the notice period, but you will be responsible for the rent for the entire 28-day period.

If you don’t pay this, the head renter is able to apply to keep a portion of your bond to cover this.

The head renter should have lodged your bond with the Residential Tenancies Bond Authority. You can do an online search to determine if the bond was lodged.

Assuming the head renter has lodged your bond, he will be able to make a claim to keep part of your bond to cover the rent not paid during the 28 days.

The VCAT process is relatively straightforward, and free. Picture: iStock

Where there is a dispute over the bond, either you or the head renter can apply to the Victorian Civil and Administrative Tribunal (VCAT).

The VCAT process is relatively straightforward, and free.

You need to complete and lodge an application form, which is available on their website, and detail the reasons why you are entitled to your full bond. You should also provide any evidence in support.

This application form can be lodged by mail, online or in person. Keep a copy for yourself and provide a copy to the head renter.

VCAT will nominate a date for the dispute to be heard.

The Tribunal member will have read all of the material before the hearing, however make sure you know the facts of your case as you will likely be asked questions and need to argue your case and potentially dispute what the head renter says.

Consumer Affairs Victoria has further information about rental rights that may assist you.

This legal information is general in nature and should not be regarded as specific legal advice or relied upon. Persons requiring particular legal advice should consult a solicitor. If you have a legal question you would like Alison and Jillian to answer, please email [e-mail]. Get more from Alison and Jillian on their Facebook page.