If you are renting a room from a person whose name is on the original tenancy agreement, you are a subtenant and the person who you are renting from is your head-tenant.

If the head-tenant lives at the property, you must have a separate written agreement in order to have legal protection. SUPRA has developed a head-tenant/subtenant agreement you can use – download the subletting agreement template as a Word document [19KB]. A tenancy agreement is important for both parties to understand the rules and it allows The NSW Civil and Administrative Tribunal (NCAT) to resolve disputes if needed.

If you sublet from a head-tenant who does not live at the property, an oral agreement is adequate, and you as the subtenant will be covered by the Residential Tenancies Act 2010.

If the head-tenant lives at the property with you and you have a separate written agreement, the head-tenant is your landlord and must adhere to all the obligations of a landlord under the Residential Tenancies Act 2010. It is standard practice for a head-tenant to take 4 weeks of rent as a bond (or security deposit) from you at the start of your tenancy. If you pay a bond, the head-tenant must give you a receipt for the money and should lodge your bond with Rental Bonds Online (RBO) – the NSW government bond-holding and management service. Commonly, head-tenants do not lodge the bond, which is why it’s very important to get a receipt as proof that a bond was paid. When you vacate the property, if you do not owe any outstanding rent or money for other reasonable costs (such as utilities or damage to your room or any of the common areas), the head-tenant must refund your bond within 14 days of you vacating the property.

In NSW, a head-tenant must have the landlord’s permission to sublet, but this is not common practice.

As a subtenant you should have your own private room, unless you share your room with someone, and equal access to all common spaces at the property. The head-tenant cannot impose any type of restriction on your use of any of the common spaces and utilities, such as hot water, cooking, having friends over etc. As a subtenant, you live in a share house and you all need to agree on cleaning, housekeeping and sharing bills.

Moving in

As a subtenant you will not be given an ingoing condition report, so it is extremely important that you record the state of your room and the common areas before you move in. Record full details in writing, take clear date-stamped photos, and email a copy to yourself and your head-tenant. You can use the NSW government’s standard Residential tenancy condition report  as a guide to the sort of information that needs to be recorded for your room and the common areas. If there is a bond dispute at the end of your tenancy, you will have documentation about the state of your room and the property when you moved in.

Types of tenancy agreements

There are 2 types of tenancy agreements you can have:

1. A fixed-term agreement: has a specified end date.
2. A periodic agreement: has no specified end date. When a fixed-term agreement expires without being renewed, it automatically becomes a periodic agreement.

Ending your tenancy agreement

Ending your fixed-term agreement

If you want to end your agreement early, you will need to pay the regulated break fee.

If you are leaving at the end of your agreement, you need to give a 14-day written notice to your head-tenant

If your head-tenant has breached your rights, you need to issue a 14-day written notice of termination.

Ending your periodic agreement

If you want to end your agreement, you will need to give a 21-day written notice to vacate.

If your head-tenant has breached your rights, you will need to issue a 14-day written notice of termination.

Find out more about ending your agreement and your legal obligations.

Important tips for subletting in NSW

• Always inspect the property before signing an agreement and paying any money
• Always have a written tenancy agreement in English
• Get receipts for any money paid – such as bond, utilities etc
• Set up online rental payments that are clearly labelled ‘rent’
• Record full details with date-stamped photos and video of your room and the common areas when you move in.

Disclaimer

This information is current as of November 2024 and is intended as a guide to the law as it applies to people who live in or are affected by the law as it applies in NSW. It does not constitute legal advice.