Shared tenancy: lease, joint liability, pro-rata rent receipt

Shared tenancy appeals to tenants, who share the rent, as much as to landlords, who secure their income. But it raises specific questions: single lease or separate leases? What is the joint-liability clause and how far does it bind each flatmate? What happens when one of them moves out? And how do you issue a receipt when several people pay the rent? This guide covers shared tenancy as framed by the Act of 6 July 1989, as amended by the Alur Act.

What is a shared tenancy?

A shared tenancy is defined by article 8-1 of the Act of 6 July 1989 as the letting of the same dwelling to several tenants, as their main residence, formalised by the conclusion of a single contract or of several contracts between the tenants and the landlord.

It may concern an unfurnished or furnished dwelling, with the corresponding lease terms: three years (individual landlord) for an unfurnished dwelling, one year (or nine months for a student) for a furnished dwelling.

Single lease or individual leases

Two arrangements are possible, with very different consequences:

• The single lease: all flatmates sign the same contract and are joint holders of the lease. This is the most common arrangement, often paired with a joint-liability clause.
• Individual leases: each flatmate signs their own contract covering their private room and a share of the common areas. Each is then responsible only for their own rent, with no joint liability between flatmates.

The choice of arrangement determines the extent of each person's obligations. The single lease with joint liability offers more protection to the landlord; individual leases offer more protection to each flatmate.

The joint-liability clause

In a single lease, the landlord very often inserts a joint-liability clause. It makes each flatmate — and their guarantor — liable for payment of the whole rent and charges, not just their share. If one flatmate defaults, the landlord may claim the full amount from the others.

The Alur Act has, however, framed the duration of this commitment for the flatmate who leaves the dwelling. The joint liability of a departing flatmate, and that of their guarantor, ends on the earlier of these two dates:

• on the effective date of a new flatmate who replaces them on the lease;
• failing a replacement, at the latest six months after the effective date of the notice they duly gave.

In other words, a flatmate who leaves and gives notice is no longer bound indefinitely: after six months, or as soon as a replacement moves in, they are released.

A flatmate moving out

Each flatmate may give notice individually, without ending the lease for the others. The notice period is that of the lease: three months for an unfurnished dwelling (reduced to one month in a high-demand area or on a legitimate ground), one month for a furnished dwelling.

The departing flatmate does not recover their share of the security deposit directly from the landlord: the deposit is returned in a single payment at the end of the lease. Arrangements over the deposit share are generally settled between flatmates, with the replacement reimbursing the person leaving.

Charges, security deposit and insurance

In a shared tenancy, recoverable charges may, by way of exception, be set as a flat sum (a fixed amount paid with the rent, without annual reconciliation), which simplifies management. Otherwise they remain paid on account with a yearly reconciliation.

The security deposit is single for the dwelling and may not exceed one month's rent excluding charges (unfurnished) or two months (furnished). Each flatmate must also be insured: home insurance is mandatory, and in a shared tenancy the landlord may take out insurance on the flatmates' behalf and recover the cost.

The pro-rata rent receipt

The landlord must give a rent receipt free of charge to a tenant who requests one. In a shared tenancy, each flatmate may request a receipt corresponding to the share of rent and charges they have actually paid.

The pro-rata receipt states the amount paid by the flatmate concerned, distinguishing rent from charges. It serves them as proof of residence and payment — useful for a housing-benefit application, an application file or a declaration. A rental-management tool lets you generate these per-flatmate receipts in a few clicks.