Managing shared house rent payments

Shared 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, like 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 before you get started

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 shared house 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 fortnightly or even weekly. It might be a good idea to stick a big note someplace where 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

Do this 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This is where the money is withdrawn automatically from your account each rent day.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 about how you can organise 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.

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 to make 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.  You can check with The Private Residential Tenancies Board, an organisation set up by the government to register tenancies and mediate disputes between landlords and tenants, or your local authority about your rights in regard to this. Also, see the Related links on the left-hand side of the page for further information.