Perhaps you need to supplement your income and don’t want to pick up a time-consuming side hustle. Or maybe you’re moving in order to start a new job and need to sublease your room in a shared apartment to someone else. Whatever the reason you’re considering renting out a room, a room rental agreement is a must to protect both you and your tenant during your tenancy, just like a typical residential lease agreement.
In this article, you’ll find:
A simple room lease agreement is a contract between you and the person to whom you are renting a room within a rental unit. It outlines the rules and responsibilities of both you and your tenant.
When you’re both a housemate and the landlord, the person you’re renting to is only renting the room they will stay in, and the rest of the dwelling is considered common space. Once signed, a room rental agreement is a legally binding document that protects both you and your tenant.
A room rental agreement is not the same as a sublease agreement. For more information about the sublet process, which has its own set of rules, check out this subleasing guide for both homeowners and tenants.
The term “room rental agreement” often gets confused with the terms “traditional lease” and “roommate agreement.”
Both a room rental agreement and a traditional lease agreement are legally-binding rental contracts between a tenant and the person from whom they are renting. However, there are distinct differences.
A room rental agreement:
Meanwhile, a roommate agreement:
A room rental agreement is needed when a person rents out a private room to a tenant or a primary tenant sublets their room to a subtenant.
Any time you rent a room to someone else, a room rental agreement helps the landlord feel more secure in knowing that the tenant will take good care of the room itself. It also benefits the tenant to have landlord responsibilities clearly defined.
While a room rental agreement is not legally required, the benefits far outweigh the risks of not having one. In the world of property management, it’s always a good idea to have legal contracts in the form of a written agreement signed by all parties involved, just in case something unfortunate happens.
Without a room rental agreement, you open yourself up to a variety of potential issues. Consequences of not having a room rental agreement include:
You aren’t the only one protected by the room rental agreement. Without a room rental agreement, a tenant can face unexpected fees and rent increases, unwanted inspections, and potentially mental anguish from conflict with you.
In a perfect world, the room rental agreement prevents issues between you and your tenant. However, sometimes your tenant may break the terms of the agreement. Instead of putting up with their behavior, you do have the right to evict them from your rental unit as long as you follow the rules established by your state’s laws. However, eviction is an expensive and time-consuming process, which is why rental applications and comprehensive tenant screenings are so important.
Generally, the eviction process involves:
If the person renting the room leaves unexpectedly without following the procedures outlined in the room rental agreement, you can file a claim in small claims court to recover their financial obligations, such as an early move-out fee or the rent amount due for the remainder of the occupancy term.
If you aren’t sure what your state requires, it’s best to consult your local housing laws. While room rental agreement requirements can vary by state, they all include the same essential terms. Use the terms below as a room-for-rent lease agreement template, and include anything else that’s required by your state.
Regardless of the situation, all simple room lease agreements should include the following terms to ensure all parties are protected:
To make things easier on you, we’ve provided a free printable room rental agreement template!
Our form is in a pdf format, making it easy to print and fill out.
Before advertising a room for rent in your dwelling, there are a few extra steps you need to take in order to find the perfect roommate.
First, and most importantly, find out if your local zoning laws allow you to rent a room. Finding the ideal roommate takes time, and you don’t want to go through the entire process only to find out you aren’t allowed to rent the room. You’ll also want to explore whether your local laws require a property inspection, permit, or license for rentals.
Once you know whether or not you can legally rent a room, a big question to consider is whether you want to provide furniture for your tenant. In some cases, like for month-to-month leases or for younger renters like college students, a furnished apartment can be a big draw for prospective tenants. This will help you decide how much stuff you want your tenant to bring, especially if storage options are limited.
When you have answered those questions, it’s time to find your tenant.
Finding the perfect roommate can be challenging, especially since the stakes are high. Fortunately, following a few simple steps can save you the headache of a bad roommate.
Before you start looking for a tenant, it’s essential to consider the type of person you want to rent your room. Typically, someone renting a room is a single person, whether they are a student, a young professional just starting their career, or a business person who travels to the area frequently and needs a place to stay. However, sometimes a couple may rent a room.
Once you know whether you want to rent to an individual or a couple, you need to consider what the ideal tenant looks like to you. Consider the best roommates you’ve ever had, as well as the worst. Are there any deal-breakers you have? For example, if messiness bothers you, prioritize finding someone neat. If smoking drives you crazy, make sure you rule out any smokers.
Think carefully about what you want to be like as a landlord, so that when you interview your potential tenant, you can describe what they can expect from you. Understanding your role will also help you start drafting your room rental agreement.
Let friends and family know you’re looking to rent out a room. The sooner you start this step, the more time you have to decide. You don’t want to end up with a roommate you don’t really like just because you need someone to pay the rent.
While it may be tempting to rent to a friend or family member, that can lead to problems. What you look for in a friend isn’t always what makes a great roommate, and vice versa. However, friends are excellent resources for finding potential roommates since they know you and could connect you with someone who’s a great fit.
You should also advertise online and provide as many details about the space itself. Describe the room, the property’s location, and any amenities it comes with, like a parking space. Also include what you’re looking for in an ideal roommate, but stick to personality characteristics like “neat” or “dependable” to avoid potentially discriminatory statements.
It’s also a good idea to provide details about yourself that might impact someone’s decision to live with you, like if you work early mornings or late nights.
After people have had time to apply, it’s time to interview your potential candidates in person. This part can get a little awkward since you don’t know each other yet, but the more questions you ask, the better.
Some questions to ask include:
After the interview, you should still screen the potential roommate, which typically includes:
Once you identify potential candidates who fit your screening criteria, you can narrow down the list even further.
As soon as you’ve made a decision, let the lucky new tenant know and meet with them to go over the room rental agreement together. Sign the simple room lease agreement before they move in or when they move in.
Renting out a room doesn’t have to be overwhelming or time-consuming. Use our template for drafting a room rental agreement, then list your rental so you can find your perfect roommate today.
9 min read
With such a competitive and fast-paced real estate market, especially rental markets, knowing how to get property management clients is crucial for starting and...
8 min read
Condo property management, on its face, is exactly what it sounds like — overseeing one or many units in a condominium building...
7 min read
Finding the ideal commercial or residential rental property can be challenging for renters, as it may only meet some of their specific...
Create a Custom Lease Agreement
State-specific lease agreements keep you and your tenant safe. TurboTenant makes it easy to store your rental agreements, e-signatures, and addendums!
