Sub-letting rooms and disclosure duties

Sub-letting a room can change who lives in a home and how it is used. That can matter to a lease, strata rules and insurance disclosure. The safest approach is to establish permissions first, then update relevant information accurately.

Check the legal and lease position

Requirements differ between states, territories, lease agreements and strata schemes. Obtain consent where it is required and document the arrangement. A verbal understanding may not address insurance or occupancy questions clearly.

Tell the insurer material facts

Insurers may ask who occupies the property, whether it is owner-occupied, rented, vacant or used for short stays. Answer the actual question precisely. A change in occupants can affect eligibility, limits or conditions.

Keep boundaries clear

Agree in writing about rent, common areas, keys and responsibility for belongings. A housemate's possessions are not necessarily part of your contents sum insured. Encourage each occupant to consider their own needs.