Types of rentals and agreements

Boarders, lodgers and tenants

Boarders, lodgers and tenants live on property owned by another person, called the landlord.

The main difference between boarders, lodgers and tenants is that tenants have exclusive possession over all or part of the property.

Exclusive possession is the right to exclude all others, including the owner or landlord, from the house or room being rented.

Boarder

If you are a boarder, the following apply:

  • you pay rent
  • you stay at landlord's house with their permission
  • the landlord keeps control over the house and can come into the house or room without notice
  • the landlord cleans the room and washes the bedding
  • meals are provided by the landlord.

Lodger

If you are a lodger, the following apply:

  • you pay rent
  • you stay at landlord's house with their permission
  • the landlord keeps control over the house and can come into the house or room without notice
  • the landlord cleans the room and washes the bedding
  • you provide your own meals.

Tenant

If you are a tenant, the following apply:

  • you pay rent
  • you have control and authority over the house or specific area such as a room
  • the landlord cannot enter without notice.

Renting from existing tenants

You can rent all or part of a house from an existing tenant. The tenant must ask the landlord for permission to sub-let the property before you move in.

If you agree that you have exclusive possession over all or part of the house, such as a room, you are a sub-tenant.

If you are not put on the agreement then you and the head tenant are entering into a separate contract.

The head tenants takes on the role as landlord and has the same rights and responsibilities as a landlord.

Before you move in

You should decide what type of accommodation best suits your needs.

You should also consider:

  • how much rent you can afford
  • whether the rent covers electricity, water, phone and internet use
  • services offered by the landlord such as linen, laundry and meals
  • penalties for leaving after a short time
  • how much you need to pay before you move in
  • whether the house rules suit your lifestyle.

If you have to pay a bond or security deposit, make sure you ask for a receipt.

You should also ask the head tenant to explain the terms of the bond or security deposit in writing.

The head tenant should also provide you with an ingoing property condition report within three business days of you taking possession.

For more information, contact NT Consumer Affairs.


Share houses

A share house is a property rented by a number of people. They are often cheaper than renting alone. 

Share house options

Co-tenant

A co-tenant has signed a tenancy agreement. If you are a co-tenant, you share all of the tenancy rights and responsibilities. 

Make sure you receive written receipts for any payments you make, such as bond. 

Sub-tenant

If you live in the house but your name is not on the tenancy agreement, you are a sub-tenant. You will generally share the same rights as co-tenants. 

If there is only one person's name on a share house tenancy agreement, they are the head tenant. This person is responsible for paying rent. 

As a subtenant you will need to pay a bond to the head tenant. An ongoing property condition report should be completed within three business days of when you moved in. 

Read more about condition reports.

Move into an existing share house

You should understand your rights and responsibilities before moving into a share house with other people. 

Common areas such as kitchen, laundry and lounge room are generally already furnished. Everyone in the house can access these areas. 

You should meet the other tenants that you will be sharing with and talk about the rules the other tenants already have in place.

Set up your own share house

You should consider all of the following before setting up a share house:

  • how much rent you can afford
  • moving costs such as rent in advance and security deposit
  • what furniture you need
  • whether there are enough car parking spaces for all residents
  • who is responsible for housework and garden maintenance
  • how many people you want to live with. 

Security deposits

Most landlords require a bond or security deposit before you can move into a property. 

If you pay all or part of the security deposit, you should make sure your name is on the security deposit receipt. 

The landlord can only return deposit money to people listed on the security receipt. 

Read more about security deposits/bonds.

Subletting

Subletting is where you give another person the right to stay in your rented place while keeping the tenancy in your name. 

If you take in sub-tenants then you, the head tenant, are acting as their landlord. 

As the landlord you must make sure the sub-tenant is given all documents as required under the Residential Tenancies Act.

These include:

  • a tenancy agreement
  • receipts for bond and rent payments
  • incoming and outgoing property condition reports. 

You need to ask your landlord for permission to sublet your property. Your landlord can't reasonably refuse your request. 

If you don't let the landlord know that you are subletting then you are breaking the terms of the lease. 

You may be issued with a notice to remedy breach which could result in the tenancy being terminated. 

For more information or advice, contact NT Consumer Affairs.

Types of rental agreements

Under the law, tenancy agreements do not have to be in writing, but it's better if they are. 

There are two types of rental agreements. 

  • fixed term
  • periodic.

Fixed term

You agree to rent a property for a fixed amount of time such as six or 12 months.

If you stay at the property after your lease has expired and a new tenancy agreement is not signed, and you are not asked to leave, the agreement becomes periodic.

Periodic

You rent a property for an unspecified period of time. It can continue for an indefinite period until you or the landlord gives notice to terminate the arrangement.