Renting with somebody for first time...

GSDog89

I am renting with a friend for the first time and would just like some advice on how things are normally arranged.

Firstly what would happen if he lost his job and could no longer afford to pay the rent? Would I then be totally liable for his rent?

He has asked if I could setup a bank account that we both pay into to cover rent and bills. Is this generally normal in a shared flat, or does each tenant normally pay the landlord directly? My concern is that if he misses a payment into the account and the landlord is not paid by it then it's not clear that its his fault and not mine.

I do trust him entirely but I obviously need to ask these questions! Any help would be appreciated.

Annisele

GSDog89 wrote: »

Firstly what would happen if he lost his job and could no longer afford to pay the rent? Would I then be totally liable for his rent?

Depends on how you set things up. If you have a joint tenancy (i.e. both of you rent an entire property) then you'd both be liable for all of the rent. The landlord would chase whoever seemed most likely to be able to pay it - and if you were the one with a job, that would be you.

He has asked if I could setup a bank account that we both pay into to cover rent and bills. Is this generally normal in a shared flat, or does each tenant normally pay the landlord directly? My concern is that if he misses a payment into the account and the landlord is not paid by it then it's not clear that its his fault and not mine.

In my view, that's a VERY BAD plan. You'd be financially linked to him, and so his credit rating could affect yours (and vice versa). You could also end up liable for any debts he ran up on the account.

GSDog89

Thanks for the prompt reply.

It is a joint tenancy agreement so as I thought we are both 100% liable for the full rent?

Regarding the bank account, that is my biggest concern. The account would be setup entirely in my name and I have a perfect credit score as I've been paying a mortgage (and still am!) for the past 3 years.

If the bank account is sorely in my name is this still a risk?

How are bills etc normally paid in a houseshare?

Pixie5740

Yes you both have joint and several liability for paying the rent. I don't see why you can't each pay half each to the LL. As long as the LL receives the full amount on time I don't suppose it matters if it comes in as 2 payments.

Don't put all the bills in your name only either.

laurathree

I agree with the above - you should both set up standing orders to pay your half of the rent to the LL, and split bills between you, i.e. you sort Council Tax and electricity, he does water, internet, and gas. Or something. You'll never get the split dead even, but it spreads out the work and the responsibility. You don't want to be financially linked by an account - that is risky for you both.

As for household goods - loo roll, cleaning stuff, milk, etc., in my old shared flat we had a flat jar that we all stuck a tenner in a week. That doesn't financially link you but means you're paying jointly. Not a perfect system but it worked well for us.