Room Rental Agreements assist in avoiding legal conflict when renting out a room on a property. Legally protect yourself by using our free template and guidance to create a full-fledged agreement.
Last Update March 23rd, 2023
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- What is a Room Rental Agreement
- When to Use a Room Rental Agreement
- What to Include in a Room Rental Agreement
- How to Write a Room Rental Agreement
- Difference Between Room Rental and Roommate Agreement
- Room Rental Agreement Sample
- FAQs About Room Rental Agreements
What is a Room Rental Agreement
Room Rental Agreements are a type of legal contract used for subleasing a room within a rental unit.
This document type is based on the original agreement and lists the rights and obligations between tenants and subtenants. Additionally, Room Rental Agreements require the landlord’s authorization.
If you are a principal tenant who wishes to sublease your entire rental unit, use our Sublease Agreement form instead.
This type of agreement helps clarify issues, such as:
It can also define any rules the signing parties consider important.
Room Rental Agreements are an essential tool to protect tenants’ rights in case of disagreement.
When to Use a Room Rental Agreement
Room Rental Agreements are mainly used when tenants want to sublease a room in the living unit they are renting. However, this form of agreement is also recommended for property owners and real estate managers.
Generally, Room Rental Agreements are more flexible in terms of structure and less extensive than other real estate agreements.
They are also much less complex than a Residential Lease Agreement, where you need to take state laws into account to ensure legal validity.
Although Sublease Agreements should contain standard terms like the rent amount, their scope lies much more in defining expectations, rules, and responsibilities.
The agreement’s goal is to maintain a good tenant-subtenant relationship.
The following is a list of situations where you might find it useful to sign an agreement:
Cleaning duties. Famous for being one of the main reasons for disagreement, this legal form helps define this type of responsibility upfront.
Managing visitors. If one of the tenants has a rich social life or a close partner, this can rapidly become a touchy subject.
Household chores. Watering plants, taking out the trash, and washing dishes are just a few examples of the tasks you can list in a Room Rental Agreement.
Extra costs. Clarify in advance how unexpected repairs and fees will be divided.
Sleeping hours. Another friction point that can lead to a serious conflict. Add it to your agreement and elude unpleasant conversations.
What to Include in a Room Rental Agreement
There’s no limit as to how specific you can be when drafting this type of document. However, a simple Room Rental Agreement should contain the following basic elements:
Tenant’s and subtenant’s information
Periodicity (monthly, weekly, etc.)
Rent amount and due date
List of household chores
Notice period to terminate the agreement
List of furniture and other extras provided like parking spots
Subtenant’s insurance (if applicable)
Signatures and date
Remember to declare the income from subleasing a room in your tax return.
You will be able to deduct any repairs you have to undertake in the room and common areas defined in the agreement.
How to Write a Room Rental Agreement
If you are considering drafting your own agreement, you need to make sure that you include all the necessary details.
Add the following sections in order with the correct information to create a legally valid Room Rental Agreement:
Information about the parties. Identify the main tenant as Landlord/Head tenant.
Property details. Indicate the exact location of the property.
Use of property. List the common and private areas that the tenant will be able to access and use.
Term. Clarify the length of the agreement and notice periods.
Specific rooms. Identify the room that the tenant will be using.
Rental payments. Include the rent amount, periodicity, and payment method.
Late fees. Inform if there will be fees in case of late payment, and how they will be calculated.
Security deposit. State if a security deposit is required, the amount, and the terms for its return.
Utilities. Define the amount to be paid for electricity, garbage fees, and such.
Furnishings. Provide a full list of the furniture.
Governing law. Determine which law shall apply in the event of a dispute.
Date and signatures. Include the date and signatures of both parties.
Create your document using our free online customizable Room Rental Agreement template to ensure you don’t leave out any significant details.
Difference Between Room Rental and Roommate Agreement
The main difference between a Roommate Agreement and a Room Rental Agreement is that the landlord does not need to be involved in the former.
However, there are more distinctions you should examine to stay away from trouble:
|Roommate Agreement||Room Rental Agreement|
|Landlord does not need to be informed||Permission from Landlord required|
|Includes no reference to original Rental Agreement||Incorporates elements of original Rental Agreement|
|Used for sharing a rental unit||Used for subleasing a room in a rental unit|
Room Rental Agreement Sample
We have included the following Room Rental Agreement sample for your reference. Use this example along with the Room Rental Agreement template to write your own document.
FAQs About Room Rental Agreements
It is essential that you fully understand Room Rental Agreements before you start drafting your own document.
We have prepared a list of answers to the most frequently asked questions to help you clarify any doubts you may have.
Does a Room Rental Agreement Cover Multiple Tenants?
Sublease Agreements may cover more than one tenant. List every tenant separately and specify details like their names and agreement periods.
Depending on the size of the room and the amenities in it, tenants may be required to pay different amounts for utilities. Make sure you include this in your agreement, too.
Do I Need a Contract to Rent a Room?
Legally, you are not required to have a contract to rent a room, but it is highly advisable to have one to protect both, tenants and subtenants.
For example, if a subtenant misses paying the rent or damages the premises, a Room Rental Agreement provides protection to the main tenant.
What Does Rent by the Room Mean?
Many landlords choose to rent by the room instead of renting the entire property to a single tenant.
This guarantees income, as it is very unlikely that all tenants will miss a payment at the same time. It is a way to secure their investment, and it usually also offers higher returns.