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WHAT IF A TENANT CAN’T PAY THEIR SHARE OF THE RENT?
over 1 year ago
WHAT IF A TENANT CAN’T PAY THEIR SHARE OF THE RENT?
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There are clear structures in place around what a tenant’s responsibilities are regarding payment of rent, but things can get complicated when there is more than one tenant on the lease – even more so when they are not related but in a share house arrangement. If it is just two people, then strictly speaking they are both responsible and the tenant who can pay will find their tenancy in jeopardy. With one tenant unable to pay, both will be impacted, and negotiations may need to be made. The outcome of which may be a notice to vacate if one of the tenants can no longer afford their share of the rent. There may be an option for the viable tenant to remain, however the tenant is arrears will need to be removed from the lease and either replaced, or a new agreement made with the remaining tenant as the sole lease holder.  



 



The grey area here comes with the type of relationship the tenants have with each other. A married or defacto couple may be able to support each other to retain the status of their lease. Many share houses however - especially in younger demographics - are often made up of a group of strangers who all had the same need in terms of location, living costs, and values - and simply ended up contractually obligated to each other in the form of their lease. In any event, the landlord or property manager’s first instinct will usually be to hold all leaseholders responsible for the full rent being paid on time, regardless of the deficiencies or politics happening within the property.