Advice

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Sharing houses and flats is a dignified lifestyle choice contrary to some opinions. We have heard that there is a recording available that emulates the sound of someone else in the apartment - how sad! Get the real thing here and enjoy life.


Contents

Calculating rent and bond

Rent is usually calculated by the calendar month. This is because there are not exactly 4 weeks in every month. To find the yearly rent multiply your weekly rent by 4.33 (or multiply weekly rent by 52 or your monthly rent by 12).

For example $100 per week is 433.33 dollars per month or $5,200 per year. See this bond calculator.

You may need to calculate the daily rent. This would happen when people have given a month’s notice but a replacement is found sooner. The incoming person then pays rent from the day they move in and the outgoing person receives a refund. To work out the daily rent divide the yearly rent by 364.

Bond is usually one calendar months rent. Everyone should pay a bond, it keeps the arrangement more business-like. It protects the lease-holder from being left with bills and any rent that is due if the co-sharer leaves suddenly. Check the laws in your state governing money held as bond.

If you own your own home and wonder what rent to charge, check with your local Real Estate Agent to see what they are charging for a similar place in your area. Divide this amount between the number of bedrooms in the house and because you will not have to pay Agents fees you could reduce the Real Estate Agent's rent a little.

Be prepared to negotiate the rent if the person has a good reason for not being able to afford the rent you have nominated - living with the right person is worth it.

According to our statistics, the average rent in Melbourne is $150 per room, this varies from suburb to suburb. The higher the standard of accommodation and the closer to the city, the higher the rent. People usually expect to have their own bathroom if the rent is over $250 each per week.

Giving notice and bond refunds

Always agree to give your co-sharer one months notice if your plans change. Give the notice on rent day - when the next month's rent is paid - this gives everyone a full month to find a new person.

If you are the one leaving the house don't think that your bond money will pay for the final month's rent. If the place is rented the bond is kept by the real estate agent, and the person with the lease has to pay the next month's rent, including your share. How it usually works is that the incoming person makes their bond cheque out to you - this way you get your bond refunded, and they pay their bond, in one go. At this stage you will have paid your share of the bills and returned your key.

One important point to make here is that too many people continue living together when the relationship has broken down. If you are not enjoying living with your co-sharer, don't let things get out of hand. Try to discuss the issues, and if they can't be resolved, agree to find new co-sharers. There are too many nice people to live with, you don't have to put up with people you are not getting on with.  

Shared Accommodation Agreement

You can personalise this yourself. We urge everyone to us such an agreement. The Residential Tenancies Act does not always protect people who share. Suggested wording: I hope we enjoy sharing together. Some of the details about the house are listed below. We have discussed and agreed on the house etiquette. If any problems arise we agree to discuss them immediately.

The Rent is $ pcm due on ----------------------------------------

The Bond is $ -----------------------------------------------------------

We agree to give each other one month’s notice on rent day at the time the next months rent is paid. We then arrange for the utility meters to be read and the bond is refunded when the bills are settled. We agree to repair or replace any household item belonging to the other to which we cause damage.

The household bills are approximately $ --------------------

Kitty arrangements are

Garbage night is

Recycling arrangements are

Signed ......................................................................

Signed .................................................................  

Rent increases

If you have been a good tenant and take good care of the place you are renting, always ask the owner or agent to reconsider that increase. A good stable tenant is very valuable. If the Landlord's investment is in good hands, maintenance on the property is reduced. If the rent is increased and you feel it's unfair, go out and look at other places to rent to see if you are getting good value. Perhaps you can bargain a bit. If the rent goes up will they repaint the place, or make some other improvement? There's no harm in asking.  

Dividing the Rent in Larger Households

What to do in the case of couples, single parents and those working from home.

singles

If three people share a three bedroom house then the rent is divided by three. If one person wants exclusive use of the third bedroom for a study then they pay two thirds of the rent. Some people want to charge more than an equal share of the rent because they have furnished the place. This should be discussed openly with the incoming person. i. You could agree on a nominal amount each week, say $5, or ii.  agree to share the cost of any repairs and maintenance, or iii.  the incoming person may have furniture of their own to contribute. Sometimes in a three bedroom house the third bedroom is quite a lot smaller than the other two. The household may decide to reduce the rent on the smaller room, and add the difference to the larger rooms. This often makes it easier to find someone to take the smaller room as well.

couples

If a couple shares the house using only one bedroom, they should pay more than the cost of one person occupying that room. Some households split the rent by the number of heads, others increase the rent by say 30% for the couple's room and adjust the rent on the other bedrooms accordingly.

The bills are always divided by the number of people in the house.

single parents

If the child has their own room, the rent should be split by the number of bedrooms in the house. If the child has the smallest room the rent could be less for that room. Some single parents split the rent according to the number of adults in the house but this means the co-sharer is paying part of the rent for the child's bedroom.

When paying the bills what proportion of the gas and electricity is used to meet the child's needs ie washing, heating, lighting. You may find that the bills need to be split by the number of people (child or adult) in the house.

working from home?

If one room is dedicated as a home office and used exclusively by one person then they should pay for that room. This means that they pay rent for two rooms; their office and their bedroom.

If this office is shared by another person in the house then they pay half each.

The bills should be adjusted according to the amount of light, power and heating used during the day by the person working from home.

These costs can be claimed as a tax deduction.

How to find the best person

General Tips

There are Three Golden Rules

  • Rule number one : While you are looking for someone to share, if you meet someone that you fancy DO NOT LIVE WITH THEM take their phone number and see them socially.
  • Rule number two : Sharing with friends can work but so often it ruins a good friendship. Keep your friends and live with someone more independent.
  • Rule number three: Think very carefully about sharing with workmates, it can be attractive, you know them well, you enjoy them at work and better the devil you know they say. Living with someone you spend all day at work with can test even the strongest friendship. Disagreements at work are then taken home and vice versa.

When you are looking for someone to live with don't be desperate about it, as someone said "It's too expensive to be desperate" and it can be difficult to make the right decision under pressure.

If you are the leaseholder, don't worry about how rapidly rent day is approaching, it is more important to choose the right person. If the rent day comes, pay it, even if you have to borrow some money to do so. If you have always paid your rent on time approach the Real Estate Agent, they may give a few extra days or let you pay part of it and it's worth paying a whole weeks rent on our own if it means that you find someone who is fun to live with.

If you are looking to move in with others, try to arrange to stay with friends if the deadline to move is approaching. The inconvenience of storing your furniture and living like a nomad for a week or two will be far better than making a rash decision and moving in with people you don't get on with. Remember, you are about to share a home with someone you have never met before in your life.

Interview Tips

People are always on their best behaviour in an interview, if you like each other have a second meeting. A meal can be a good ice-breaker - either at your place, or theirs so you can see how they live now. It can be just the two of you or perhaps invite some friends along - people are more relaxed in familiar company and you will get to see another side of them. This will establish whether the chemistry is as good as you initially thought.

The best way to avoid a mis-match is to use a reputable and professional screening service like peoplebrokers selectively matches requests and like-minded people can find each other. If you choose to advertise then the next category will explain the safest way to go about it.

If you are looking for someone to move into your place

  • Put both your work and home phone numbers in the advertisement. If you are female and live alone have a friend over for the weekend, preferably male. Give the impression that there is a lot of activity at your place, say things like, "We will be here all weekend." This will discourage surprise visits from the person you have just given your address to.
  •  Ask a lot of questions on the phone and take notes, apart from the obvious; name, age, work etc. ask them about their leisure interests to get some idea of compatibility.
  •  If you give them your address always take their name, address, home and work phone number. And ask them to phone you if they are unable to keep the appointment, and you agree to do the same if you can't keep the appointment.
  •  Trust your intuition, if you think they may not be suitable don't see them during the weekend. Tell them that your weekend is quite booked up and arrange to phone them at work on Monday to set up a time. If you find a more suitable person during the weekend you can phone and tell you have found someone.
  •  You can always meet someone at lunch time or after work if you both work nearby. After all the most important thing is liking the person, they will want to see your place but that is secondary.

If you are looking to move in with others

  •  Take time to talk to each person you call and take notes as you go. Be as interested in the person as you are in the house itself. If you really like the person and they live in a rented place, when the lease runs out you can always look for a new place together.
  •  Ask them about their lifestyle, what they do in their spare time. Some people are always out which may not suit you if you want some social input. Of you may prefer to share with an independent person who is always out. If they watch TV ask them what shows they like.
  •  Some people are very territorial and won't be much fun to share with because they will boss you around. Ask how they organise the food, does everyone put their name on their food or is it shared. If they have a long list of do's and don'ts it may be difficult for you to feel like it's your home too.
  •  Keep appointments or pay people the courtesy of phoning to cancel.
  •  It can be a good idea to take a friend with you when you see the place. If you like the situation, have a second meeting without the friend, so that you can make up your own mind.
  •  Always consider spending a little extra on the rent to move into a nice place. You can then save money by entertaining at home instead of going out

If you want to set up a new place

  • Realise that it is going to take time to do the rounds of the Real Estate Agents. There will be the wild goose chases - the quality of rental properties is often low.
  • If you want someone to share with you to help pay the rent, the more you consider their needs the easier it will be to find that person. Be aware that there are often more people with vacant rooms than there are people ready to move in.
  • Have you considered finding the person first and choosing the place together? peoplebrokers can match people to look for a place together.

Before signing a lease, or agreeing to share with someone, check this list

The following are things to consider before signing a lease

  • More people prefer to live in houses with gardens rather than in flats. 
  • Are all the bedrooms a good size?
  • Are there several living areas?
  • Are there built-in wardrobes in each bedroom?
  • Is there enough cupboard or storage space?
  • What condition is the place in; carpets, paintwork, cleanliness etc.
  • Are the colours neutral?
  • Is there good natural light?
  • What about noise level - visit the place at several different times of the day - or speak to the neighbours.
  • Try the water pressure, the hot water, the stove, the heaters etc.
  • What public transport is available?
  • Is there adequate parking?
  • Is the area safe?
  • What facilities like shops etc are available?
  • Can you afford to pay the rent on your own while you look for someone to share with you?

Questions to cover

Questions to ask at the initial interview

  • Occupation, employer, age?
  • Where are you living now and why are you moving?
  • Where else have you lived?
  • Can I speak to (or meet) the people you have shared with?
  • What term of accommodation are you looking for?
  • Do you smoke, drink, use recreational drugs?
  • Do you have any medical issues that could affect our sharing relationship?
  • What is your weekly pattern of coming and going?
  • What do you do in your spare time, what interests you, what music and what tv?
  • Are you in a relationship, how often do they stay?
  • Tell me about your friends? Do they visit often?
  • Do you like to entertain at home?
  • Do you want to share closely or more independently or in between?
  • Can you afford the rent and bond?
  • Do you have pets? Do you like animals?
  • Issues to discuss and agree on when deciding to live together
  • House etiquette
  • Discussing issues
  • Meals and food
  • Chores
  • Bills
  • Partners, friends, relatives staying over
  • Notice - one month on rent day as the next rent is paid
  • Bond payable and how it is refunded
  • Use a sharing agreement

We wish you successful sharing. It can be fun, especially when it is set up properly.

Try not to be dictatorial, each person must have equal rights in a shared home. Give and take is necessary.

Moving in Arrangements

The day a person agrees to move in they should give you the bond as a token of their sincerity and in return you can give them a key.

Don't stop looking for someone until the bond is paid, people's plans can change.

When they move in they must pay one months rent in advance. If you are an owner occupier the bond must be put into a trust account. If you are renting, the bond is given to the person moving out when they pay their share of the bills.

Write out a friendly sharing agreement stating the financial arrangements and that you agree to give each other one month's notice should anyone's plans change. Both sign it and keep a copy each.

It can be a good idea to register everyone's name on the Gas, Electricity, Water and Telephone account. This way you are all responsible for payment.

Have a clear agreement about standards and values and how you like to live. Don't think that you will be able to change the things you don't like as you go along. The next category discusses good ways to run the household smoothly.

Running the Household

The Bills

The most secure way to deal with bills is to put the account in everyone's name. Gas and electricity are usually split by the number of people in the house. If you need to work the bills out before the account arrives it is easy to do it yourself without having it read by the gas or electricity company. Look at the last bill, and compare the reading numbers, with the numbers showing on the meter at present. Most bills now show you the average daily cost anyway.

If everyone uses the telephone the same amount the bill can be divided by the number of people in the house. If one person uses it more than the others you can note down each call you make; or put money in a box for each call; or arrange for a fully itemised account. Many areas automatically receive a breakdown of STD and ISD calls and will eventually the local calls will be itemised as well.

If people are not honest about their std or isd calls have Telecom put a bar on the phone. In fact if you have asked someone to leave and things are unpleasant, you should put these bars on anyway to avoid being left with a huge phone bill.

If people don't pay the bills on time you can try a few things. Get them to pay the bill, you give them your share.

If you don't trust them to pay on time then work out the average weekly cost and ask them to give you that amount each week. A household bank account is an easy way to handle common bills.

The Food

Food kitties are generally unsuccessful, people resent putting in $40-$50 per week when they don't eat at home regularly. There is also the question of personal taste; if one eats a lot of meat and other rarely eats meat. On the other hand, labelling your food, having YOUR food shelf, putting marks on the milk carton to see if someone is using your milk, is very anti-social. A kitty for essentials like cleaning products, loo paper etc can work well. This could include the basics which are used regularly like milk, butter, bread etc. It's important that the system is fair to everyone. If someone uses more than their share, they should contribute more.

One of the biggest bug-bears is when one person is continually using the food and never replacing it - using the last of the milk and not telling anyone - it just takes a little thoughtfulness. If you replace what someone else has used don't hesitate to ask them for the money it cost.

Have a shopping list handy so that you make a note of things to buy before they run out. If you use something that is not yours leave a note to say what you have used and when it will be replaced, so that your co-sharer won't get a surprise when they open the cupboard and it is not there.

The Chores

Sharing the chores can be handled in several ways. Some households work well with rosters which rotate the chores. One week you clean the bathroom, the next you vacuum. Others prefer to have set chores, one person always vacuums etc.

If people don't do their share, perhaps it's a busy household, rather than haggle over who hasn't done what, hire a cleaner. A few hours a fortnight to have the common areas properly cleaned costs under $40 - that's $5 each a week in a three person house - a small price to pay for harmony.

Always keep common areas tidy so that everyone feels free to invite people home at the last minute. Above all clean up after yourself , no-one else wants to clean up after you - If you don't enjoy it, imagine how your housemate feels cleaning up when it's your mess!

The next category will give you some good tips for hassle-free sharing.

Tips for Good Sharing

A shared house that works well is not just a place where you leave your things, it's your home. Sharing is about being independent yet enjoying each others company when you are home together. The following six points will ensure your home is a happy one.

  • Avoid problems by solving them. Rather than complain, suggest a way to overcome the problem. Discuss issues when they arise. There is no point brooding over something that has annoyed you for weeks until you eventually explode, or there's a stalemate. Some households have regular house meetings where everyone has a say. Airing grievances makes all the difference. It is surprising how often people aren't aware that some of their habits are annoying - habits they can change easily. If things don't improve change your housemate, there are too many nice people in the world.
  • Be reliable, thoughtful and considerate, always do what you have promised to do. Treat others as you like to be treated. Thoughtfulness can be as simple as buying flowers to cheer the place up, or bringing home a bottle of wine occasionally instead of the cheapest cask. Do more than you are expected to, if everyone does that there can never be any argument.
  • Give each other space to be alone from time to time. Don't always invite your friends over, go to their place sometimes. If you are planning an activity that needs privacy, organise it in advance.
  • Be open and honest - If you break someone else's stuff don't hide the pieces, simply say, "Where did you buy these?" - you admit it and resolve it in one easy sentence.
  • Be understanding. If your co-sharer is under a lot of pressure at work or studying for an exam, or going through an emotional rough patch, give them some space to deal with it.
  • For the comfort of everyone assess your personal hygiene. Some bedrooms develop a strange odour akin to one million dead ants; in reality it's last weeks body odour, a pile of dirty washing, and a bed that is long overdue for clean sheets. Use a serviced laundry, they will wash and dry your clothes, even iron them at a minimal charge, and let fresh air into your room once a day as well.

AND ... try not to hog the phone line when you are on the net - get cable or a second hard line.

Chris Kaine & Associates Pty Ltd hopes this information is useful. Sharing can be fun and if we all treat each other as we like to be treated it will be even more fun. For more information on good house sharing and help to find the best co-sharer register with peoplebrokers. 

Visit the Office of Fair Trading and the Tenants Union in your state for more advice if the property is rented. If sharing a property with the owner you should refer to common law for guidance.

Press

Over the years a lot of press has been written about our work. Here is a sample - covering topics like

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