A room rental agreement is a legally binding contract between a tenant and a sub-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 sub-renter. Upon execution, this agreement imposes specific duties and obligations on both parties.
What is a Room Rental Agreement?
A room rental agreement incorporates elements and terms of the original lease agreement and serves as a detailed and comprehensive guide for tenant responsibilities and rights.
A room rental agreement outlines the responsibilities of a principal tenant subleasing a room in a rental property, not the entire rental.
Unlike oral agreements, the law usually honors written agreements. These agreements carry more weight when a tenant needs to enforce financial responsibilities and obligations on a sub-tenant.
Therefore, a room rental agreement is essential for protecting tenant rights when entering a situation where the principal tenant subleases a room in a property to secondary tenants.
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 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 |
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 party to the agreement (the tenant leasing the premises is commonly referred to as the “Principal Tenant”)
- Premises: the address of the premises the sub-tenant is leasing
- Rent: the amount of rent and security deposit each tenant pays
- Obligations and duties: each tenant’s primary responsibilities, chores, and obligations under the lease
- Utilities: how the tenants 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 tenants can park on the premises and, if so, how many vehicles and parking spots are allotted to each
- Damages: each 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 tenants will purchase renters’ insurance
- Smoking and alcohol use: smoking rules and tenant responsibility for maintaining reasonable standards of behavior and noise when consuming alcohol
- Various permissions: for example, whether pets or guests are allowed
If you are not the principal tenant on the lease and are looking for a simple roommate agreement between you and another roommate, you can create a free Roommate Agreement in minutes with our builder.
Room rental agreements are sometimes referred to as ‘Room Lease Agreements” because the new tenant agrees to the terms and conditions of the original lease.
For reference, room rental agreements may also be referred to as:
- Sublease Agreement
- Room Lease Agreement
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 that you should do due diligence when selecting a roommate, such as requesting a landlord reference letter 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 boyfriend or girlfriend: If you are wary of your roommate or other tenants having their significant others 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 all the time can result in increased electricity, other utility bills, and different precarious situations.
- Your roommate 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 roommates 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 roommate 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 roommates and 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-exhaustible 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.
