A room rental agreement is a legally binding contract between an existing tenant and a new tenant, the person the original tenant wants to rent a room to.
This document clearly outlines the expectations and responsibilities of both parties, the original and new renters. Upon execution, this agreement imposes specific duties and obligations on both parties.
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Alternative Form
If you are a principal tenant who wishes to sublease your entire rental to a subtenant, use our Sublease Agreement form instead.
What Is a Room Rental Agreement?
A room rental agreement details the relationship between the parties and serves as a comprehensive guide for tenant responsibilities and rights.
A room rental agreement outlines the responsibilities of a principal tenant renting a specific room or rooms in a rental property, not the entire rental.
Unlike oral agreements, the law usually honors written agreements. These agreements carry more weight when a principal tenant needs to enforce financial responsibilities and obligations on a new tenant.
Therefore, a room rental agreement is essential for protecting tenant rights when the principal tenant subleases a room in a property to secondary tenants.
Essential Elements
A simple room rental agreement will identify the following elements:
- Date: the dates the room rental agreement begins and ends.
- Tenants: the contact information and identifying details of each tenant who is a party to the agreement (the tenant leasing the premises is commonly referred to as the “Principal Tenant”).
- Premises: the address of the premises the new tenant is leasing.
- Rent: the amount of rent and security deposit the new tenant will pay.
- Obligations and duties: new tenant’s primary responsibilities, chores, and obligations under the lease.
- Utilities: how the parties will divide utilities (specifically, the name of the tenant or tenants who will be on various utility bills and how each tenant will pay).
- Parking: whether new tenants can park on the premises and, if so, how many vehicles and parking spots are allotted to each.
- Damages: each new tenant’s responsibility for damages they or their guests may cause, and how tenants will share damage costs when they cannot reasonably trace the damage source to a particular tenant.
- Renter’s insurance: whether or not the new tenants will purchase renters’ insurance.
- Smoking and alcohol use: smoking rules and new tenant responsibility for maintaining reasonable standards of behavior and noise when consuming alcohol.
- Various permissions: for example, whether pets or guests are allowed.
Differences Between Room Rental and Roommate Agreements
At first glance, there does not seem to be much difference between a room rental agreement and a roommate agreement. However, there are several notable differences you should acquaint yourself with.
When entering into a housing arrangement, make sure you know the differences between the two. Otherwise, you could open yourself and your fellow tenants up to vague and undefined expectations and obligations.
| Type | Room Rental Agreement | Roommate Agreement |
|---|---|---|
| Other Names | More similar to a "sublease agreement" | Referred to as a ‘housemate agreement,” or “roommate contract” |
| Purpose | Used when a tenant wants to rent a room to a third party | Used when moving in with a new roommate, or have found a new roommate |
| Does It Need Approval? | May need landlord's approval of the lease | Doesn't usually need landlord’s permission |
| Parties Involved | Original tenant and new tenant | All roommates sharing the accommodation |
| Legal Standing | New tenant has direct legal responsibilities to the original tenant | All roommates have legal responsibilities to each other |
| Financial Responsibility | New tenant pays rent to the original tenant | Rent is usually split among all roommates and paid directly to the landlord |
| Security Deposit | May require a separate deposit from the new tenant | Usually no additional deposit beyond what is already required by the landlord |
When Do You Need a Room Rental Agreement?
You should use a room rental agreement when you are a homeowner, principal tenant, or building manager and want to lease a private room or portion of your property to a secondary tenant.
Use a room rental agreement to clarify both parties’ expectations, obligations, and responsibilities and promote a harmonious living environment.
Room rental agreements are a great tool to curb potential issues before they escalate and allow parties to open up communication channels.
IMPORTANT
When entering into a housing agreement, parties often overlook simple and obvious points of future contention, so think of a room rental agreement as a catalyst for starting certain difficult conversations early on.
Keep in mind that in the eyes of the law, room rental agreements are not all-encompassing.
Also, remember to do your due diligence when selecting your tenant, such as requesting a Landlord Recommendation Letter for a Tenant from previous landlords.
Although courts are more likely to enforce the financial responsibilities of both tenants, they will not order a delinquent tenant to vacuum the living room or wash the dishes.
Common Uses for a Room Rental Agreement
- The party you rent to has a partner: If you are wary of the new tenant having their significant other over 24/7, a room rental agreement can help set boundaries for when they are and are not allowed. After all, having someone not covered under the lease on your property all the time can result in increased electricity, other utility bills, and different precarious situations.
- Your new tenant has guests constantly staying over: A room rental agreement is essential for keeping your place private, quiet, and undisturbed, allowing you to outline days of the week when the new tenant cannot throw parties, cause excessive noise, or have uninvited guests.
- You want to divvy household expenses and other costs: No one wants to be the only person washing dishes or paying for cleaning supplies while the other sits back and does nothing. Executing a room rental agreement allows parties to determine how household and other essential costs are divided.
- You want to provide for respective property maintenance duties: During winter, someone will likely have to shovel the driveway, decks, and other community areas. And, in summer, someone will probably need to mow the grass and attend to other general lawn-care duties. The burden for essential maintenance duties should not fall solely on one party, so ensure you provide for these situations in your agreement.
- You want to establish quiet hours: Noise complaints are among the most common causes of concern for potential tenants. Setting quiet hours is important for not only a tenant’s comfort but also their sanity.
Consequences of Not Having a Room Rental Agreement
Without a room rental agreement, you risk opening yourself and other tenants to severe financial consequences and wasted time, leading to serious headaches and stress or a potential lawsuit.
Below is a non-exhaustive list of the preventable suffering a room rental agreement could help prevent and resolve.
| Consequences | Common Situations |
|---|---|
| Lost Money | One party may end up stuck paying more rent, forfeiting a security deposit, or paying for damage to the property, because a party moved out early or unexpectedly without notice. |
| Lost Time | If a tenant departs early and without notice, you could be tasked with an unexpected search for a replacement tenant. Or, maybe you and your tenant have a disagreement over noise levels after midnight. Without an agreement, you risk wasting time sorting these problems out at a later, inconvenient date. Additionally, you don't want to be cleaning up after your tenant hosts friends or a party, or from their general uncleanliness. |
| Lost Property | Without a room rental agreement, personal property could be damaged or never returned. The agreement details the responsibility of each tenant for damages caused. |
| Mental Anguish | Strained relationships are a common consequence of failing to outline a party's rights and obligations under a contract. A landlord could distrust you due to your tenant's behavior or lack of timely rental payments. Even a friendship with your tenant could deteriorate over small misunderstandings. |
Room rental agreements are effective tools for designating smoking areas and confirming whether or not alcohol is permitted on the premises.
Room Rental Agreement Sample
Download a free room rental agreement in PDF or MS Word.
How to Write a Room Rental Agreement
Before filling in the details of your room rental agreement, ensure the top of your form identifies the state you are contracting in.
In addition, be clear that this room rental form is between a principal tenant and a new tenant who wishes to rent a room, not an entire property. A different version of this form exists when a landlord wants to rent a room to a tenant.
Step 1 – Fill in Room Rental Agreement Details
1. Date of Agreement. Provide the effective date of this room rental agreement form.
2. Principal Tenant Name. Write the full name of the principal tenant (the person renting the room to the new tenant).
Step 2 – Identify the Property Address
3. Property Address. Enter the street (physical) address of the room that the principal tenant is renting. Include any room, unit, or apartment number, if applicable.
Step 3 – Provide the Lease Details
4. Term or Length of Lease. Fill in the start date of the lease, and note either the lease’s end date (if it is a standard fixed-term lease) or that the lease continues on a month-to-month basis.
5. Tenant Name. Write the full name of the tenant(s) renting the room. Also, enter the monthly rent amount, security deposit amount (if any), and a description of the room rental (i.e., located on top of the garage with its own bathroom).
Step 4 – Fill in Any Security Deposit Amount
6. Total Security Deposit. Provide the total amount of the security deposit for the property. This should be in the original lease agreement between the principal tenant and the landlord.
Step 5 – Describe How Tenants Will Share Utilities
7. Utilities Included in Rent. State whether or not the rent includes any utilities. If yes, write a list of all utilities.
8. Utilities Not Included in Rent. For utilities not included in the rent, state whether or not the tenants will share the utility amounts. If tenants will share the utility amounts, provide the name of the person listed on the utility bill and how tenants will share the costs (evenly split, rotating, or another method).
Step 6 – Enter Parking Details
9. Parking Details. State whether or not the room rental includes parking privileges. If parking is included, provide the new tenant’s name, vehicle description, and parking spot.
Step 7 – Write Any Legal Considerations
10. Renter’s Insurance. State whether or not the new tenant needs to purchase renter’s insurance. If yes, provide the insurance company’s name, the insurance policy’s monthly rate, and the name of the signer(s) on the policy.
11. Early Termination. Write the months’ notice the tenant must give to terminate the room rental agreement.
Step 8 – Fill in Behavior Stipulations
12. Pets. Specify whether or not the new tenant can have pets on the property. If the principal tenant allows pets, provide the pet’s name, type of pet, and the pet owner’s name.
13. Chores/Household Duties. Identify how often the tenants will discuss household duties.
14. Overnight Guests. State whether or not the new tenant can have overnight guests and if the new tenant must first discuss the guest with the principal tenant.
15. Noise Level/Quiet Hours. Write any quiet hours and the start and end times.
16. Parties/Entertaining. You can specify the maximum number of guests allowed over at a time. If a tenant wants to invite more than the number specified here, state the number of days’ notice before the event the new tenant must discuss with the principal tenant. If a tenant wants to host a large gathering, note the number of days notice before the event the new tenant must consult with the principal tenant. Also, all tenants must agree to a large gathering.
17. Smoking and Alcohol Use. State whether or not the principal tenant allows smoking or alcohol on the property. If yes, specify specific smoking areas and hours when the new tenant can drink alcohol.
Step 9 – Identify Additional Terms
18. Governing Law. Identify the state’s laws that govern the construction of this room rental agreement.
Frequently Asked Questions
Does a room rental agreement cover multiple tenants?
Yes, a room rental agreement can cover multiple tenants. Be sure to include each tenant’s identifying information and the specified lease dates, as some tenants and roommates may differ.
Can I execute a week-to-week or month-to-month room rental agreement?
You can execute room rental agreements week to week or month to month. When creating your document, make sure you specify the correct dates of the lease.
