How to Create a Roommate Agreement in Australia
A well-written roommate (or flatmate) agreement can prevent disputes, set clear expectations, and make life easier for everyone involved. It doesn’t need to be complicated — but it does need to be clear.
At AS Mortgage Partners, we’ve helped hundreds of clients navigate home ownership, investment, and shared living arrangements with clarity and confidence. Whether you’re moving into a share house for the first time or managing an informal tenancy, understanding how to protect your rights and responsibilities is key — and we’re here to guide you through it.
This blog walks you through exactly what to include in a flatmate agreement, why it matters, and how to get started with confidence
What Is a Roommate Agreement and Why It Matters
Purpose of a Roommate Agreement
A roommate agreement is a simple written contract between people who live together in the same property but aren't all listed on the main lease. It sets out how rent, bills and responsibilities will be shared. It can also cover general rules for living together — such as quiet hours, cleaning duties, or guest policies. Think of it as a way to protect everyone involved. By having things in writing, there's less room for confusion or disagreements down the track. Even the best of mates can run into issues — especially when money or shared spaces are involved.
When You Need One
You need a roommate agreement whenever you're living in a shared house and not everyone is on the tenancy agreement. For example:
● If you’re subletting a room from someone else
● If you’re moving in with a friend who is the only person on the lease
● If you and your housemates have a verbal arrangement but nothing in writing
In all of these situations, an agreement helps to formalise things — especially important if things don’t go to plan.
Benefits of Having One
Here’s why it makes sense to put one in place:
● Avoid misunderstandings about rent, bills or shared responsibilities
● Protect your finances by setting clear expectations
● Resolve disputes quickly by having a process agreed upfront
● Keep your living space enjoyable by agreeing on house rules
In short, a roommate agreement helps maintain trust and peace of mind — something every shared household needs.
What to Include in a Roommate Agreement
Once you've decided to put a roommate agreement in place, the next step is to ensure it covers all the key details. A good agreement should remove guesswork and clearly set expectations. Here's what you should include.
Names and Contact Details
Start with the basics: list the full names and contact information of everyone living in the property. This ensures each person is formally recognised in the agreement and can be contacted easily if needed.
Rent, Bond, and Payment Terms
Money is one of the most common causes of tension in a shared home, so this part is essential.
● Rent Amount: Clearly state how much each person pays and whether the rent is split equally or based on room size or other factors.
● Payment Dates: Include the due date each week or month, and the method of payment (e.g. direct transfer).
● Bond: Record how much each person contributes to the bond, where it is held, and how it will be returned at the end of the tenancy.
Example: If the weekly rent is $600 and you’re splitting it three ways, note that each person pays $200, due every Monday, via bank transfer to one nominated housemate or directly to the landlord if allowed.
Term and Exit Conditions
Even if you’re in a casual or flexible living arrangement, it’s wise to agree on how long everyone plans to stay and how much notice is needed if someone wants to move out.
● Start and End Dates (if applicable)
● Minimum Stay Requirements
● Notice Period: Typically two to four weeks is reasonable, depending on the setup.
Setting clear expectations around departure avoids last-minute stress, especially if someone needs to be replaced.
Bills and Shared Expenses
This is where many informal arrangements fall apart. Include all shared bills and how they’re split — equally or proportionally.
● Electricity, gas, water
● Internet or streaming services
● Cleaning products and shared household items
You might also want to nominate one person to manage the bills and remind others when payments are due.
House Rules
This section can make or break the living experience. It doesn’t need to be strict, but it should reflect what everyone is comfortable with.
● Cleaning Roster: Who cleans what and how often
● Guests: Are overnight guests allowed? Is notice required?
● Noise and Quiet Hours: Particularly if people work from home or do shift work
● Food: Shared groceries vs personal items
● Pets and Smoking: Whether they’re allowed and any rules around them
Tip: Keep this section clear but flexible. You can always update it later if the group agrees.
Dispute Resolution
While everyone hopes to get along, it’s helpful to decide upfront how disagreements will be handled.
● Encourage house meetings to talk through issues
● Agree on a cooling-off period or neutral third party if needed
● Consider whether an outside mediator could be involved for serious matters
A quick, agreed process reduces stress if things get tense — and helps you avoid small problems becoming big ones.
Legal Considerations in Australia
Roommate agreements can be highly useful, but it's important to understand their legal status and how they fit into your rental situation.
Is It Legally Binding?
In most cases, a roommate agreement is not a formal lease agreement under tenancy law. That means not every part of it is legally enforceable.
That said, certain clauses — particularly around money, such as how rent or bills are split — can carry legal weight if there’s a dispute. If something ends up in mediation or small claims court, having a written record of what was agreed helps support your case.
Some other elements, like cleaning rosters or house rules, are more about shared expectations than legal obligations. Still, having them written down helps avoid confusion or disagreements later on.
Relationship to the Lease and the Landlord
It’s worth noting that a flatmate agreement is separate from your formal lease agreement with the landlord. If only one or two people are officially listed as tenants, the landlord is only legally responsible for dealing with them — not with other flatmates.
This means:
● The landlord doesn’t have to enforce your flatmate agreement
● You're responsible for making sure everyone pays rent, even if someone leaves
● It’s a good idea to let your landlord or agent know about anyone new moving in, as many leases require written approval for subletting or additional occupants
If you’re unsure what your lease allows, check with your agent or property manager first. It’s always better to be upfront.
Signatures and Documentation
Once your agreement is written, it should be signed by all flatmates. You can print a copy or sign it digitally — just make sure everyone keeps a version for their records.
This shows that everyone has agreed to the terms and reduces the chance of confusion. It’s also a useful reference if someone forgets what was agreed or disputes part of the arrangement later on.
Tip: Review the agreement every few months or when someone new moves in, to make sure it’s still relevant.
Need Legal Backup?
If you're ever unsure about your rights in a shared housing setup or need help understanding your lease terms, it's worth getting legal guidance. Law Tram connects you with qualified lawyers across Australia who can help with tenancy issues, disputes, and agreement reviews — without the hassle of traditional legal searches.
Where to Get a Roommate Agreement Template
You don’t need to draft an agreement from scratch. Several trusted resources offer free or customisable roommate agreement templates designed for Australian households. Whether you’re renting with friends, subletting, or managing a house with rotating occupants, these options can help get things in writing quickly and clearly.
Here are a few recommended sources:
● Flatmates.com.au — simple and practical, suited for casual house shares
● LawDepot — customisable templates with helpful prompts
● Lawpath — ideal for those wanting legally-reviewed structure
If you’re running a business or have more complex arrangements — for example, subletting to employees, managing rental income, or sharing ownership — you may benefit from more tailored legal or financial advice. In that case, it's worth speaking with your accountant or legal advisor to ensure everything aligns with your broader financial goals.
At AS Mortgage Partners, we work closely with Alexander Spencer, a Melbourne-based accounting firm that specialises in helping small business owners stay financially structured and compliant. If your housing setup ties into your business or investment strategy, we can connect you with the right people to guide you.
Protect Yourself
A flatmate agreement might not be the first thing you think of when moving into a shared house — but it’s one of the smartest decisions you can make. It helps protect your finances, keeps communication clear, and gives everyone a solid understanding of what’s expected.
By covering the essentials like rent, bills, cleaning, and guest policies, you’re setting your household up for success. Even simple agreements can go a long way in avoiding awkward conversations or costly misunderstandings down the track.
If you’re living in a share house or thinking about moving into one, now is the time to get something in writing. It’s a small step that can make a big difference — and it shows you’re thinking ahead.
At AS Mortgage Partners, we do more than help with home loans — we support Australians through every stage of the property journey. Whether you’re buying, refinancing or managing shared housing, our team is here to offer clear, practical advice.
Get in touch today to speak with an expert and get access to useful templates and personalised support.