Room-by-room tenancies

In a room-by-room tenancy, the tenant just rents a room and not the whole flat.
Aratohu couple

What is a room-by-room tenancy?

A room-by-room tenancy is one where the tenant only rents the room, rather than the whole flat. Facilities such as a kitchen and bathrooms are shared by the different tenants.

The tenancy agreement should include rules about how the common areas (kitchens, gardens, etc) will be shared and maintained. Sometimes the landlord will organise a cleaner, but in other cases the tenants will have to organise the cleaning among themselves.

Outgoings such as electricity will usually be included in the rent amount, and paid by the landlord. Tenants should only be charged for a specific electricity bill if the rooms have separate meters.

Independence of each tenant

Each tenant in a room-by-room tenancy has a separate legal relationship with the landlord, and they should each have their own tenancy agreement. This means they are individually liable for their own rent payments and for any damage they do to the property, but are not responsible for the actions of other tenants.

This is different from a tenancy where all the tenants sign one tenancy agreement and are together and separately liable to the landlord for paying for rent, and for any damage caused (s 276 Property Law Act 2007).

Sometimes however, a tenancy with one tenancy agreement (or no written agreement) may be a room-by-room tenancy, if the agreement or the circumstances show that this was the intention. For example, if the tenancy agreement states how much rent each individual is to pay, this may be evidence to say that it is a room-by-room tenancy. See the case studies below for examples of where the Tenancy Tribunal has found there to be a room-by-room tenancy.

Disagreements with other tenants

In a room-by-room tenancy, the tenant only has control over their room (and shared use of the facilities). This means they may not get to choose who they live with. A tenant can easily ask a flatmate to leave if they are untidy, or don’t enjoy flatting with them. They can’t do this in a room-by-room tenancy, as each person has their own legal right to live there.

A tenant can ask the landlord to deal with an annoying tenant on the basis that their right to quiet enjoyment is being affected. Tenants should be aware, however, that a landlord can’t just kick out another tenant because the others don’t like them. The landlord has to act in accordance with the law, and has to treat everyone fairly.

A tenant in a room-by-room tenancy will not be responsible if another tenant stops paying rent, or intentionally breaks something and refuses to reimburse the landlord. This is different to flatting, where the tenants are responsible for any flatmates who haven’t signed the tenancy agreement.

Disputes can arise between co-tenants if damage is caused and it isn’t clear who caused it. For example, if a pipe bursts and no-one tells the landlord, the tenants may be held jointly liable for any damage that is caused. Generally, any tenant who notices damage should report it to the landlord. If the tenant is clear that they are not responsible they can deny liability and it would be for the landlord to prove.

It’s generally a good idea to have written house rules in a room-by-room tenancy, although the law doesn’t say that these are a requirement. House rules are rules about the use and enjoyment of the premises, particularly about the use and cleaning of shared facilities, and expectations around noise.

Ending a room-by-room tenancy

A room-by-room tenancy can be fixed-term or periodic. It may also be part of an employment arrangement (a service tenancy). The rules of ending those tenancies will apply to the room-by-room tenancy.

In a room-by-room tenancy the tenant has control over the tenancy of their room, regardless of the plans of the other co-tenants. This means that one tenant can leave without affecting the tenancies of the others. The landlord must deal with them individually in terms of ending any tenancies, rather than as a group.

Room-by-room tenancy vs private boarding and boarding houses

If a person rents a bedroom in a house that the landlord / owner or their family normally lives in, and there are less than 6 people boarding there, and their agreement doesn’t say that the Residential Tenancies Act 1986 applies, then they are likely to be a boarder in a private house (see ss 5(1)(n), 8 and 66B RTA). Private boarders are not covered by the protections in the Residential Tenancies Act - see more here.

If there are at least 6 tenants in the house at any one time (or the landlord intends that there could be), and the tenant rents a particular room, the house is likely to be a boarding house (s 66B RTA). It doesn’t matter whether the landlord lives there or not. Boarding houses are covered by the Residential Tenancies Act 1986, but there are special rules that apply to them.

  Case study

In a Rotorua case, the Tenancy Tribunal found that two landlords intentionally tried to get around the provisions of the Residential Tenancies Act by calling their tenants “flatmates”, even though neither of the landlords lived there. The Tribunal found that it was in fact a room-by-room tenancy, despite the fact that none of the tenants had been given a written tenancy agreement. The Tribunal awarded $2,170.44 against the landlords for various breaches of the Act.
Tenancy Tribunal Order 4203973

  Case study

A landlord decided to rent her place to two groups of people (one couple, and another man). They had come to the flat viewing but didn’t know each other before this. They only signed one tenancy agreement, but the agreement divided the rent between each individual and said “Based on special individual rates, 3 rooms have beds provided.” The man’s behaviour became threatening, so the couple wanted to shift out.
The Tenancy Tribunal agreed with the couple that it was a room-by-room tenancy and they were only liable to pay their portion of the rent. The Tribunal also allowed the couple to exit their fixed term tenancy early. This did not impact on the other tenants because the Tribunal found that they all had separate tenancies.
Tenancy Tribunal order 4167394 4169182.
ferns
Aratohu couple