There are a few financial and non-financial factors to consider before taking on a new housemate. ( ABC News: Kylie Silvester )
There could be as many as 13 million spare bedrooms across the country, according to Census data.
With rising living costs, interest rate increases, and rental affordability issues, you may be curious about renting out space in your home.
Experts say you should consider a few financial and non-financial factors before taking on a new housemate.
Generally speaking, yes, says Kate McCallum, a former financial adviser based in Melbourne/Naarm.
But she recommends people "do the real numbers" with an accountant or tax agent first.
"Your water, power and internet bills will rise, and then there's wear and tear on your property [to factor in]," she says.
Ms McCallum say rent is also taxable income, which can impact some Centrelink payments and capital gains tax exemption if you eventually sell your property.
She recommends people seek the following advice before renting out a room in their home:
Dr Lyndall Bryant, a senior lecturer in property economics at Queensland University of Technology, says there are paid home sharing and homestay schemes in Australia which don't affect a home owner's taxable income.
But Dr Bryant suspects many people rent out spare rooms under informal arrangements because tenancy regulations typically don't cover boarders or lodgers.
"That is probably all happening informally, just in an agreement between two people," she says.
Lynn Smith, from the Residential Tenancies Authority in Queensland, says tenancy laws come into play in Queensland if a bond is taken , if four or more rooms are being rented , or if the room is classed as a secondary dwelling.
"So, if you've got a granny flat or a fully self-contained area underneath the house, then our Queensland tenancy laws will be applicable," she says.
Check your state or territory tenancy rules.
If your rental home has spare rooms, you can take on new housemates to help share costs.
"First and foremost, the tenant must ask for the property owner or manager's permission in writing to share the property with additional occupants," Ms Smith says.
Ms Smith says Queensland has no legal requirement for all rental occupants to be on a lease, but it is worth checking your state or territory's legislation.
"It's not uncommon that a property manager or owner may ask a new occupant for a formal application and references and go through that process."
Our experts say any agreements should be in writing. ( ABC News: Kylie Silvester )
In that case, the person already on the lease would need to consider if a new housemate should be a co-tenant or a sub-tenant.
"Co-tenants become jointly reliable for each other," Ms Smith says.
"[A] sub-tenant does not have a relationship directly with the owner or the manager of the property, the head tenant does … it's a little more tricky."
She says notifying tenancy agencies of any changes to bond contributors is equally important.
Our experts recommend putting any agreements with new housemates in writing.
"Including, and perhaps especially, with friends and family," Ms McCallum says.
She says the agreement should cover:
Ms McCallum also recommends using electronic payments , so there is a "clear record for both of you".
"Whoever you're considering, meet them more than once, check ID and references, and talk through day-to-day living in detail like work hours, cooking habits, guests, showers, how warm or cool they like the house," she says.
"[And] look beyond the dollars; it can bring real benefits, like companionship, someone around when you're away, and help with pets.
"But go in with clear eyes about the trade-offs in privacy and control."
This article contains general information only. You should consider obtaining independent professional advice in relation to your particular circumstances.
