How to Make a Room Rental Agreement [Sample]

You can generate extra income to help cover your mortgage and other expenses if you rent out a room in your house. However, you should always have a clear agreement in place before someone else moves into your home with you so that you can maintain a positive relationship and avoid conflicts. Using a room rental agreement will help you set expectations and prevent legal disputes.

What is a room rental agreement?

A room rental agreement is a legally binding contract between someone who owns a room in a home and another party who will rent that room. A rental agreement for rooms in private homes typically functions as an agreement for someone to lease a bedroom while sharing communal areas like the kitchen and living room. In addition to stating information like how much rent a renter will pay and when, a room rental agreement sets expectations for living in a shared home to help foster a good relationship between you and the person renting from you.

Why do you need a room rental agreement?

Since you’ll share a space with a renter, you want to make sure you’re both on the same page about all rules and expectations. You might even rent out different rooms to people who don’t know each other, so having one generic room rental agreement will make sure everyone in your home understands the rules and responsibilities. Having a written and signed room rental agreement also makes it easier to remove a renter who breaks the rules or doesn’t pay the rent on time.

Important Terms To Include in a Room Rental Agreement

A lease agreement for renting out a room should include:

• Names of all renters: Specify all adults involved. This makes all people living in your house aware of the agreement and responsible for following the rules you set.
• Limitations of tenancy: You can use your room rental agreement to make clear that only the renters listed on the agreement may live at the property. This will give you the right to evict a renter who violates rules of occupancy, such as letting a friend live in the room with them without your permission.
• Terms of occupancy: Specify whether the roommate rental agreement is month-to-month or for a fixed term, and whether or not either party can change these terms.
• Rental fees: Indicate the amount of rent, when the renter will pay, and how you’ll collect rent (for example, by certified check or online). You should also make any penalties for late payments or bounced checks clear.
• Security deposits/other fees: Make the amount and purpose of the security deposit clear in addition to what the renter should expect at the end of the agreement in terms of getting their deposit returned. Detailing where and when you have the right to use the security deposit helps to avoid confusion and prevent legal problems when the tenancy ends.
• Maintenance and repairs: State the responsibility the renter holds for maintenance and repairs to protect your property. For example, include that the renter must maintain their room in good, clean condition and inform you right away of any damages as well as obtain your permission before installing any additions in the room.
• Rules/restrictions on pets: Disclose your pet policy, and detail any applicable restrictions and rules if you do allow pets.
• Restrictions on illegal activities: Clearly state all restrictions, as doing so will help protect you should legal disputes arise.

All in all, if you want your renter to abide by certain rules while living in your house, you should include the information in the room rental agreement. This will help you avoid misunderstandings and conflicts later on.

Sample Room Rental Agreement

Drawing up a comprehensive room rental agreement can feel a bit overwhelming, so here’s a sample of a lease agreement for renting a room you can use to start:

The [Homeowner Name] (“Homeowner”) and [Renter Name] (“Renter”) enter this legally binding agreement. This agreement sets forth rights and obligations for the Homeowner and Renter.

Renter is renting a room from Homeowner in the residence located at [Property Address] (“Home”).

1. RENTAL TERM: This Room Rental Agreement begins on [Start Date] and continues on a month-to-month basis OR ends on [End Date]. If the Room Rental Agreement begins after the first of a month, Homeowner agrees to prorate the first month’s rent.
2. TERMINATION: Either Party may terminate the agreement with [#] days written notice delivered personally to other party. [Check local laws and regulations and tailor this section to ensure you stay in compliance with all landlord-tenant laws.]
3. RENT AND SECURITY DEPOSIT: Renter will pay Homeowner monthly rent of $_ per month, due on or before the first day of each calendar month. Renter must pay first and last month’s rent in advance upon signing the Room Rental Agreement. Additionally, Renter will pay Homeowner a security deposit of $_ as security for damage Renter may cause to the House. Homeowner will return the security deposit to Renter within [number of days] of the termination of the agreement, less deductions for damages. Homeowner will include an itemized statement to explain any deductions.
4. UTILITIES: Renter will pay the following percentage of monthly utility bills: [List applicable bills/percentages, such as water, gas, phone, etc.] Renter will pay for portions of utilities with the rent payment of the following month.
5. HOUSEHOLD RULES: [List all rules, including bedroom assignment, kitchen use, cleaning duties, use of common area, smoking/drug/alcohol rules, quiet hours, entertaining and overnight guests, pets, sharing personal items, etc.]
6. CONFLICT RESOLUTION: Parties each agree to make all reasonable efforts to maintain a peaceful environment and work to resolve any differences.
7. ADDITIONAL TERMS: [Add any additional terms you want to include in your agreement.]
8. MODIFICATIONS: Room Rental Agreement constitutes the full agreement between Parties. Parties cannot change Room Rental Agreement unless both Parties agree to do so in writing.

Parties agree to Room Rental Agreement:

_________________ [Homeowner Signature]

_________________ [Homeowner Name], Homeowner

_________________ [Renter Signature]

_________________ [Renter Name], Renter

A room rental agreement is an essential component of the process of renting out a room in your home. By clearly stating and agreeing to terms such as rent collection and household rules, you set the foundation for a successful relationship with your renter.

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