The Legal Light Justin Stack The law and renting out your spare bedroom We've got a spare bedroom in our home and would like to offer it to a single person, such as a nurse, student or teacher looking for a place to live. But what does the law say on boarding or lodging in a family home? According to census data, there are an estimated 13 million spare bedrooms in Australia. Lodging in a family home could put a bit of money into the homeowner's pocket and go a long way to helping solve the housing crisis. Suzanne Steel at Stacks Law Firm says having someone pay to live in your spare bedroom is a bit of a legal grey area, and there are potential pitfalls homeowners need to take into consideration. This article only applies if you already own the home. If you are renting the property, the arrangement is sub-letting and requires approval of the owner. "It's not as simple as it sounds," she warns. "The law is specific on shared rental arrangements. There are laws covering living in boarding houses, sub-letting and obligations of tenants and landlords in rented accommodation. "Renting someone your spare bedroom is excluded from the rules under the NSW Residential Tenancies Act 2010, which sets out the laws when renting premises. The Boarding Houses Act 2012 covers the law on boarding houses, not private arrangements like renting out your spare bedroom while you live in the rest of the house." Ms Steel said whether someone renting the spare bedroom in your home is a boarder or lodger depends on what else is offered. A boarder usually gets meals as part of the agreement, while lodgers do not. "I would recommend that a homeowner has an agreement with the intended lodger drawn up legally, to spell out what obligations each side has. "For instance, whether the kitchen is shared, bathroom rules, the right to have visitors, whether there is a bond and how often rent is paid. The lodger's bedroom door needs a lock to ensure privacy. "There is a need for a clearer regulatory framework for lodging, to encourage homeowners with a spare bedroom to offer it to people looking for accommodation, and to provide legal protections for both landlord and lodger. "Some private lodger arrangements work very well and both sides benefit from the companionship. There are home sharing and flatmate organisations which can vet applicants and support boarding arrangements." But be warned, the Tax Office will want to know every cent a homeowner receives from a lodger. It's best to check how income from a lodger could affect your tax or pension. STACKS LAW FIRM Grant Avery Compensation Specialist No Win, No Fee Conditions apply 02 6592 6592 taree.stacklaw.com.au Partners in life The Legal Light Justin Stack The law and renting out your spare bedroom We've got a spare bedroom in our home and would like to offer it to a single person , such as a nurse , student or teacher looking for a place to live . But what does the law say on boarding or lodging in a family home ? According to census data , there are an estimated 13 million spare bedrooms in Australia . Lodging in a family home could put a bit of money into the homeowner's pocket and go a long way to helping solve the housing crisis . Suzanne Steel at Stacks Law Firm says having someone pay to live in your spare bedroom is a bit of a legal grey area , and there are potential pitfalls homeowners need to take into consideration . This article only applies if you already own the home . If you are renting the property , the arrangement is sub - letting and requires approval of the owner . " It's not as simple as it sounds , " she warns . " The law is specific on shared rental arrangements . There are laws covering living in boarding houses , sub - letting and obligations of tenants and landlords in rented accommodation . " Renting someone your spare bedroom is excluded from the rules under the NSW Residential Tenancies Act 2010 , which sets out the laws when renting premises . The Boarding Houses Act 2012 covers the law on boarding houses , not private arrangements like renting out your spare bedroom while you live in the rest of the house . " Ms Steel said whether someone renting the spare bedroom in your home is a boarder or lodger depends on what else is offered . A boarder usually gets meals as part of the agreement , while lodgers do not . " I would recommend that a homeowner has an agreement with the intended lodger drawn up legally , to spell out what obligations each side has . " For instance , whether the kitchen is shared , bathroom rules , the right to have visitors , whether there is a bond and how often rent is paid . The lodger's bedroom door needs a lock to ensure privacy . " There is a need for a clearer regulatory framework for lodging , to encourage homeowners with a spare bedroom to offer it to people looking for accommodation , and to provide legal protections for both landlord and lodger . " Some private lodger arrangements work very well and both sides benefit from the companionship . There are home sharing and flatmate organisations which can vet applicants and support boarding arrangements . " But be warned , the Tax Office will want to know every cent a homeowner receives from a lodger . It's best to check how income from a lodger could affect your tax or pension . STACKS LAW FIRM Grant Avery Compensation Specialist No Win , No Fee Conditions apply 02 6592 6592 taree.stacklaw.com.au Partners in life