A new survey shows a shocking lack of preparedness amongst tenants who flat share or lived in HMO shared accommodation. 

Rental service provider Housing Hand surveyed 1,700 people and found that just 33% of those living in a shared property know what will happen if a housemate doesn’t pay their rent, while only 44% know what happens if housemates want to move out at different times. 

One in five (22%) admitted not knowing if their tenancy agreement is on a joint or individual basis, while almost a third (31%) don’t know what the difference is between a joint and individual tenancy agreement.

The service is particularly concerned that students, many of whom entering HMOs and other shared properties as the new academic year begins, are particularly unaware. And it says it’s reach parents/guardians who are signing up as students’ guarantors, to warn and protect them, as well as the students who are renting.

Managing director Graham Hayward explains: “When a student signs a joint and several contract, which is standard for a house share, they often don’t realise quite what they’re taking on. A joint and several contract means that, if one housemate fails to pay their rent, the other housemates become liable for their share. 

“A student on a 12-month contract paying £500 per month for a room in a house of three could face a total liability of £18,000. Few students realise that when they sign on the dotted line.

“The situation for personal guarantors – usually a parent, relative, guardian or friend of the renter – is even worse. While they may stand ready to cover any rent that the tenant can’t pay, they can accidentally find themselves also guaranteeing to cover the rent of complete strangers – all due to a joint and several clause in the tenancy.”