Renting your property to several tenants: everything you need to know about shared housing

Shared housing (colocation) is attracting more and more landlords. With rents rising in many cities and demand for shared housing increasing, renting a property to several occupants can represent both a profitable and secure solution.

Very popular among students, young professionals, and people on professional mobility assignments, this housing arrangement allows tenants to share housing costs, charges, and the use of common areas. For landlords, it can improve rental profitability while limiting vacancy periods.

However, renting a property as shared housing is subject to specific rules. A single lease or individual contracts, a joint liability clause, a security deposit, the departure of an occupant… It is essential to fully understand the legal framework before renting out a property under this arrangement.

Here are the key elements to know to offer a property in shared housing under the right conditions.

What is shared housing?

Shared housing refers to renting the same property to several people who share a home while each having their own private space.

Under the law, this type of rental is formalized through a contract signed between the landlord and several occupants. The property then becomes their primary residence.

In practice, shared housing generally includes:

• a private bedroom for each occupant;
• shared common areas (living room, kitchen, bathroom);
• a distribution of rent and charges.

This type of housing can concern both an unfurnished property and a furnished rental. In major university cities, it is particularly common among students and young professionals.

For landlords, renting a property to several tenants offers several advantages:

• strong rental demand;
• often higher profitability;
• more consistent occupancy of the property.

The two types of leases for shared housing

The operation of shared housing mainly depends on the type of lease chosen. Two models exist: a single lease or separate leases.

The single lease

The single lease is the most common solution.

In this case, one document is signed between the landlord and all occupants. All roommates appear on the same lease and commit collectively.

This document notably specifies:

• the total rent amount;
• the possible distribution between occupants;
• the start date of the lease;
• the payment terms.

In most situations, this lease also includes a joint liability clause.

This clause means that each occupant can be held responsible for paying the full rent if one tenant fails to pay their share. For landlords, this mechanism provides protection against unpaid rent.

Separate leases

Another option is to establish a separate lease for each occupant.

In this configuration, each tenant signs their own contract with the landlord and generally has a private bedroom. Common areas remain shared.

The advantages of this system include:

• simpler management when one occupant leaves the property;
• independence between tenants;
• the possibility to adapt the rent amount per bedroom ;
• it is more difficult to determine who is responsible for damage to the property in this situation

However, this organization also has certain limitations:

• no shared responsibility between tenants;
• more administrative management;
• a potentially higher risk of unpaid rent.

The choice between these two options therefore depends on the management strategy adopted by the landlord.

The landlord’s obligations

As with any rental, certain legal obligations must be respected.

Providing a decent property

The property must meet the decency standards set by regulations:

• safe installations;
• a minimum living area;
• equipment in proper working condition.

An unhealthy or dangerous property obviously cannot be offered for rent.

To learn more, you can consult our guide on landlord obligations here.

Establishing a compliant lease

The lease must contain several essential pieces of information:

• identity of the landlord and occupants;
• rent amount;
• security deposit amount;
• lease duration;
• signature date.

Specific clauses may also be included to regulate life in shared housing.

Carrying out a move-in inspection

A move-in inspection must be carried out:

• when tenants move into the property;
• when they leave the property.

This document compares the condition of the property at the beginning and end of the occupancy period to determine whether repairs should be deducted from the security deposit.

The occupants’ obligations

The residents of the property also have several obligations.

Paying rent and charges

Each occupant must pay their share of the rent and charges according to the terms defined in the lease.

If the lease includes a joint liability clause, the landlord may request the full payment from one occupant if necessary.

Maintaining the property

Tenants must ensure the regular maintenance of the property:

• cleaning;
• tenant repairs;
• maintenance of equipment.

Taking out home insurance

Each occupant must have home insurance covering rental risks.

This insurance protects the property against incidents such as fire or water damage.

The joint liability clause

The joint liability clause is a central element in many shared housing arrangements.

It provides that all occupants are responsible for paying the rent. If one of them stops paying their share, the others may be asked to cover the remaining amount.

For the landlord, this clause is an effective tool to secure rental income.

Joint liability may continue to apply for six months after an occupant leaves, unless a replacement tenant is added to the lease.

How to manage the departure of a roommate?

The departure of an occupant is a common situation in shared housing.

The concerned person must respect a notice period, the duration of which depends on the type of rental.

In the case of a furnished rental, this notice period is generally one month.

When a roommate leaves the property, several solutions can be considered:

• replacement by a new roommate;
• modification of the contract through an amendment;
• signature of a new lease.

The return of the security deposit will also depend on the condition of the property at the time of departure.

The advantages of shared housing for landlords

Offering a property as shared housing has several advantages.

Often higher profitability

The total income generated by a shared property can be higher than that of a traditional rental.

By renting several bedrooms, landlords can optimize the rents collected.

Strong demand

In student cities, demand for shared housing remains very high.

This housing arrangement allows students to reduce their living expenses.

Limited vacancy risk

When one occupant leaves, it is usually easier to find a replacement than to rent out an entire apartment again.

Making shared housing work: practical advice

To ensure shared housing runs smoothly, certain precautions are useful.

The landlord should in particular:

• carefully select occupants;
• check the presence of a guarantor;
• draft a clear lease;
• organize payment monitoring ; 
• be sure to include the joint liability clause in the lease

Good organization from the start helps avoid many conflicts.

FAQ: frequently asked questions about shared housing

Which lease should be chosen for shared housing?

The single lease is generally more secure for the landlord, particularly thanks to the joint liability clause.

Can multiple security deposits be requested?

With a single lease, the security deposit is generally shared. In the case of individual contracts, each tenant may provide their own deposit.

What happens if one roommate does not pay their rent?

When the contract includes joint liability between occupants, the other roommates may be required to cover the unpaid share.

Can shared housing be offered as a furnished rental?

Yes. Furnished shared housing is very common and particularly suitable for students or people on professional mobility assignments.

Conclusion

Shared housing is now an attractive solution to optimize the management of a property.

This housing arrangement often improves profitability, reduces vacancy periods and responds to the growing demand for shared housing.

For this model to work properly, it is essential to choose the right type of lease and clearly define the relationship between occupants.

At Lodgis, we support landlords in renting out their furnished properties, whether for a single tenant or in a shared housing arrangement.

Also discover our advice for property owners in our FAQ dedicated to furnished rentals.