Is Subletting Legal in Australia? Renting Out a Room

You have a spare room, the rent keeps going up, and someone you know needs a place. Renting the room out seems like the obvious fix. But your name is on the lease, not theirs, and you are not sure whether you are allowed to do it.

You usually are, as long as you do it the right way. This guide covers when subletting is legal in Australia, how to get your landlord's consent, what can go wrong if you skip that step, and the agreement you should have with the person moving in.

This article is general information, not legal advice. Tenancy law is different in every state and territory, so check with your state's tenancy authority before you act.

The Short Answer

What Counts as Subletting?

You are subletting when you are a tenant on the lease and you rent all or part of the property to someone else, who pays rent to you. You become the head tenant, and they become your sub-tenant. In effect you are their landlord, while still being a tenant yourself.

It is not the same as:

• Adding a co-tenant. The new person goes on the lease and deals with the landlord directly, with the same rights as you.
• Transferring the lease (also called assignment). You leave and someone takes over your place on the lease.
• Having a guest. Someone staying for a short time without paying rent is not a sub-tenant, though a long stay can become one.

You Need Written Consent First

Across Australia, a tenant needs the landlord's written consent before subletting. Ask in writing, through the agent if there is one, and include:

• The name of the person you want to move in
• Which part of the property they will rent
• When they would move in
• Confirmation that you will keep living there, if that is the case

Keep the written reply. If consent is given over the phone, follow up with an email confirming it.

Can the Landlord Say No?

It depends on where you live.

• NSW: if you ask to sublet part of the property and will keep living there yourself, the landlord must not unreasonably withhold consent. If they refuse, you can ask NCAT to decide whether the refusal is reasonable. A landlord can only charge the reasonable costs of giving consent.
• Victoria: you need written consent, and the rental provider must not unreasonably refuse it. They cannot charge a fee for giving consent.
• Queensland: you need the lessor's written agreement under the Residential Tenancies and Rooming Accommodation Act. The Residential Tenancies Authority (RTA) has the current rules.
• WA, SA, Tasmania, ACT and NT: written consent is required, and what the landlord can and cannot refuse varies. Check with your state or territory tenancy authority.

A refusal is more likely to be reasonable if the extra person would push the household over the number of occupants the lease or local planning rules allow.

What Happens If You Sublet Without Consent?

• You are in breach of your lease. The landlord can issue a breach notice and, if it is not fixed, may be able to end the tenancy.
• Your sub-tenant has very little protection. If your tenancy ends, theirs generally ends with it, and they may have limited rights against the landlord.
• You are still responsible for everything. Rent for the whole property and any damage, including damage your sub-tenant causes, stays with you.

The same applies to short-stay letting. Listing a room or the whole place on a short-stay platform is still subletting, and needs the same consent.

Your Responsibilities as Head Tenant

Once you sublet, you owe your sub-tenant many of the things a landlord owes a tenant. In practice that means:

• Giving them a written agreement
• Handling any bond according to your state's rules, which in most states means lodging it with the bond authority instead of holding it yourself
• Giving receipts for rent if they pay in cash
• Giving proper notice if you need them to leave
• Passing on repair requests to the landlord or agent

Bond is where head tenants most often get into trouble. See our guide to flatmate bond disputes for how those play out.

The Agreement You Need With Your Sub-Tenant

The landlord's consent covers you and the landlord. It does not set any terms between you and the person moving in. That needs its own written agreement, covering:

• Which room is theirs and which areas are shared
• The rent, when it is due and how it is paid
• The bond amount and where it is held
• How bills are split
• The notice either of you must give to end the arrangement
• House rules that matter to you, and a statement that they must also follow the terms of the main lease

If you met the person online, our flatmate agreement template guide covers what to check before they move in. If things go wrong later, see removing a flatmate who is not on the lease.

Sources: NSW Government — Sharing a residential rental property, Tenants' Union of NSW — Transfer and sub-letting, Tenants Victoria — Lease transfers and subletting, Residential Tenancies Authority (QLD).

Frequently Asked Questions

Is it illegal to sublet without telling the landlord?

It is a breach of your tenancy agreement, which gives the landlord grounds to take action against you, including ending the tenancy if the breach is not fixed. It also leaves your sub-tenant with little protection.

Can I charge my sub-tenant more than their share of the rent?

Rules on this differ by state, and charging more than the room is fairly worth is a common cause of disputes. Agree the amount in writing, and check your state's rules if you plan to charge more than a proportionate share.

Do I need consent if my partner moves in?

A partner who moves in without paying you rent is usually an additional occupant, not a sub-tenant. Most leases still require you to tell the landlord about anyone living there long term, so check your lease.

Can a sub-tenant be evicted by the landlord?

A sub-tenant's right to be there depends on the head tenant's lease. If the head tenancy ends, the sub-tenancy generally ends too. Where the sublet was properly consented to, the sub-tenant has more options, which is another reason to get consent in writing.

What is the difference between a sub-tenant and a boarder or lodger?

A sub-tenant has their own part of the property and rents it from the head tenant. A boarder or lodger lives in someone else's home with less control over their space, and usually has fewer legal protections. Where the line falls depends on your state and the facts.