A valuable guide for senior tenants
who are considering a home sharing agreement
In our previous article, we explored the idea of senior home sharing from the perspective of the homeowner or landlord who may be interested in leasing their home to other seniors.
In this article, we discuss this living option from the tenant’s perspective by looking at some of the major benefits it can present to senior tenants. We will also discuss matters which the tenant should consider before entering into a home sharing agreement to avoid legal issues later on.
Why you should consider home sharing as a tenant
If you find yourself in a situation where your children have left the nest, or if you have gone through a divorce or the death of your spouse, home sharing can be a living arrangement worth considering.
Many 60-plussers who find themselves in a situation where they are away from family or have lost their spouse, look towards retirement homes with suitable facilities in which they can grow old. The issue for many 60-plussers, however, is the costs associated with retirement homes and villages. Another issue is many 60-plussers do not want to be restricted to a retirement home and would prefer to live independently for as long as one is able to.
As a 60 plusser, you can find yourself in a position where you need to reduce your living costs and put your wellbeing and security first. Being a tenant and entering into a Home Share Agreement with another senior will significantly reduce your living expenses. Home sharing thus allows seniors in this position to live in another person’s home, which can be a lot more cost-effective as you are not paying your own rates, levies or maintenance of your own property.
It furthermore is a more affordable option than retirement homes, which are often costly because of all the additional expenses, which are included with living in such a home. If you are also not fond of the idea of moving into an assisted living facility, having a senior housemate postpones and avoids this big move.
A CHOICE THAT FOSTERS GREATER CONNECTION: A LESS LONELY OPTION
Surveys carried out by Altus and Mathews (2000) revealed that over half of home providers aged 50 and above expressed feelings of increased safety, happiness, and a reduced sense of isolation through their involvement in intergenerational home sharing. This highlights the advantages of alleviating loneliness by sharing space with another.
The Home Share Agreement
It is crucial that the tenant enters into a written agreement with the landlord which clearly outlines the expectations of the landlord and the tenants. Entering into a written arrangement will ensure clear communication, help avoid disputes, and provide a guideline to both parties should any disputes arise.
The agreement should specifically cater for the needs and expectations of the parties, and the agreement will therefore not be a ‘one-size fits all exercise’. As a tenant in such an arrangement, it is important to ensure that you are protected and that the agreement does not do away with legal protections to which you are entitled. We will work with you to help draft a Home Share Agreement that is customized to your specific preferences and needs.
Keeping in mind that the Home Share Agreement is unique to you and your situation, here are some of the details we recommend including:
Term
Define the duration of the agreement, which can range from one month to a year or longer. Clearly outline the start and end dates to avoid any confusion.
Rent
Specify the rent amount, any required deposit, and the payment schedule. Be clear about when and how payments should be made.
Inclusions
Detail what is included in the rent, such as utilities, internet, and property taxes. Clarify how these costs will be covered and if any additional payments are needed.
Space
Identify which areas and appliances are shared and which are designated for private use. Include information about parking spaces to prevent any misunderstandings.
Occupants
List who is considered an occupant under the agreement.
Insurance
Note that the homeowner’s property insurance typically does not cover the housemate’s personal belongings. Discuss this beforehand to protect yourself.
Liability and Damage
Clearly define the responsibilities for liability and any potential damages. This helps prevent disputes and ensures both parties understand their obligations.
Obligations and Responsibilities
In a situation where one is in a task exchange arrangement, outline the housemate’s duties in exchange for reduced rent. It is beneficial to specify the responsibilities of each party. This can include chores, noise levels, and who provides cleaning supplies. Putting these details in writing fosters a pleasant living environment.
House Rules
Establish house rules regarding smoking, drinking, recreational drugs, guests, and pets. Make sure everyone is in agreement to maintain a comfortable living situation.
Terminating the Agreement
Specify the notice period required to vacate the premises or for a housemate to move out. Clearly outline how and under what conditions the agreement can be terminated. This information is crucial for both parties.
By incorporating these elements into your Home Share Agreement, you create a comprehensive and clear arrangement that benefits all involved.
These are just a few of the areas that a Home Share Agreement covers.
Consulting with an attorney who specializes in Home Share Agreements can provide clarity and guidance tailored to your specific situation. Should you require assistance or advice, kindly contact our experienced team below.
Disclaimer: This article is intended for informational purposes only and should not be construed as legal advice. Readers should not act upon any information in this article without seeking professional advice. The content reflects the author’s understanding of the subject matter as of the date of publication, and laws and regulations may have changed since that time. The author and publisher disclaim any liability for any direct, indirect, or consequential loss or damage incurred by any reader relying on information in this article.
FOR ENQUIRIES:
Meyer de Waal
MDW INC meyer@mdwinc.co.za
021 461 0065 & 083 653 6975
Daniela Papa
021 461 0065 & 083 783 8494
Devedine Armstrong
021 461 0065 & 076 902 4027
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CLICK HERE TO READ MORE: MDW INC, Life Rights assistance for seniors
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CLICK HERE TO READ MORE: Sharing Homes with Seniors: Part 1 – A Landlords Perspective
