With many people struggling to find a home amid tight rental supply, some are looking to boarding and lodging which is becoming more common as property owners seek to cover the rising cost of living.

If you are considering renting out part of your home, it is important to understand the circumstances to determine whether a tenancy agreement or a boarding/lodging agreement applies.

What is the difference between a tenant and a boarder/lodger?

A tenant is classified as a person who pays rent and is granted the right to occupy all or part of a residential premises, with an independent existence from the property owner with no services provided.

If you are renting out a granny flat with its own entrance or have a dual-key home that can be separated into self-contained residences, then you will be renting to a tenant.

If the person pays rent to stay in your house but does not have exclusive rights to the property (ie. they cannot say it is their property), they are likely to be considered a lodger. If meals or services (ie. laundry) are also provided, they are most likely a boarder.

While a tenant is covered by the Residential Tenancies Act 1987 (WA), boarders and lodgers are not. However, they are given rights under both common law and Australian Consumer Law (ACL).

What are my responsibilities as the property owner?

A boarder and lodger’s rights will depend on the contract you have with them.

As the property owner, you must ensure that you take reasonable steps to avoid causing loss or damage to the boarder/lodger and their property. This includes giving personal belongings back if they leave them behind.

A boarder/lodger has the basic right to expect the following:

• The accommodation is in reasonable condition. They can expect the house to be clean and tidy and in a reasonable state of repair when they move in and while they are staying in the house, including all the rooms, common areas, facilities, furniture and equipment supplied by the property owner.
• Access to their room and shared spaces.
• Reasonable privacy, peace and quiet and to use their room and facilities without unreasonable interference by the property owner.
• Security for their room and personal belongings.
• A set of house rules.
• Reasonable notice to leave.

A boarder or lodger also has various rights under ACL:

• Any meals or other services they pay for must be provided with reasonable care and skill and must be reasonably fit for purpose and provided at reasonable times.
• Property owners must provide receipts for any services supplied over $75. A boarder or lodger can ask the property owner to itemise how charges like power and meals are calculated within 30 days of getting the original receipt.
• A boarder or lodger may also have the protection of unfair contract term provisions if the contract can be classed as a standard form contract.

What is a boarder or lodger responsible for?

This depends on what has been agreed with the property owner. Generally, they will be responsible for:

• Keeping their room clean and tidy.
• Paying rent when it is due and in the agreed way.
• Following the house rules.
• Giving the required length of notice to leave.
• Not using their room or common areas for any illegal purpose.
• Not sub-letting their room.

What is the best type of agreement?

Formal tenancy agreements provide a structured framework with legal protections, ensuring stability, predictable rent, and clear dispute resolution mechanisms. 

Boarder/lodging agreements may offer flexibility and simplicity, making them suitable for short-term arrangements, but they lack the comprehensive legal protections provided by formal tenancy agreements.

Which agreement you use depends on whether the person qualifies as a tenant or a boarder/lodger.

Whatever arrangement you have, you should put your agreement in writing to protect all parties. While there is a prescribed lease agreement for tenants, there is no standard form for boarders and lodgers. You may be able to find examples on the internet or will have to create your own.

Where can I get further advice or help?

If you have a problem with your boarding or lodging arrangement, you should always check the terms of your agreement and try to sort it out by discussing it in person.

Alternatively, you can contact Consumer Protection on 1300 304 054 or consumer@dmirs.wa.gov.au for advice and information.

Source: reiwa.com.au