Guide to Writing A Room Rental Agreement

Being a landlord traditionally comes with renting an entire property or unit to a tenant, but it’s not the only method of collecting a monthly rent check. Whether you’re living in a home with too many rooms or simply want to sublease your portion of a rental, renting out your room is a viable option for becoming a landlord without having to own a second home or apartment.

With room rentals come room rental agreements, and due to the difference in the type of unit, these room lease agreements can look different than traditional leases. Landlord-tenant relationships for room rental agreements can look different, too. We’re here to help you understand the basics of these room rental agreements so you can be confident that your lease is both legally compliant and fair to both parties.

What is a Room Rental Agreement?

So, let’s start at the beginning: What is a room rental lease agreement?

This type of lease is a legal document between a landlord and a renter who resides in a room that is part of a larger property or building. Rather than outlining rights and responsibilities for landlords and tenants pertaining to an entire rental unit, the lease spells out the rules for lodging in just a single room in a home.

Contrary to traditional leases, which typically last for one year, room rental agreements tend to be short-term leases, often on a weekly or monthly basis. This offers flexibility for both the lodger and landlord. Additionally, in a room rental contract, landlords tend to keep control of shared spaces such as bathrooms, a living room, and the kitchen.

It’s important to understand that rather than housing a tenant, room rental agreements technically house lodgers—the two terms carry separate legal definitions that mean two different things. A tenant is a resident who is granted “exclusive possession” of a property, whereas a lodger is a resident with a “license to occupy,” or who in other words is sharing a space with a landlord who also lives in the home.

When to Use a Room Rental Lease Agreement

There are two situations in which you generally need a room rental contract: Renting out a room in your own home or subleasing. Let’s break down each of these instances to better understand when to use a room rental agreement.

Renting a Room in Your Home

There are many different circumstances in which you could end up with empty rooms in your home that you aren’t using. Maybe an adult child has just moved out for the first time, an old roommate has parted ways with you, or you’re just tired of letting your guest bedroom sit empty.

You could also rent out a room while you’re away for a short or extended period of time (though your resident would be considered a tenant, rather than a lodger, if you’re not residing in the home during the duration of their stay).

Many people looking to profit from their surplus of rooms will rent out a room to a lodger and allow them to use shared spaces in the home, either out of financial necessity or simply out of an entrepreneurial mindset.

Subleasing

Just as there are many circumstances that allow a homeowner to rent out an extra room, there are many instances where an existing tenant may need to leave their lease for a period of time or move out completely, opening the opportunity for subleasing.

Subleasing is when a preexisting tenant under a lease creates another (sub)lease and rents to another tenant independently of their original lease. This can occur when someone needs to unexpectedly leave or move out from a room or apartment but is still contractually obligated to the unit.

Subleasing, while convenient, must first be allowed by the original landlord—if you’re looking into subleasing your room or apartment and creating a new room rental agreement, you’ll need to look over your current lease for clauses related to subleasing or have a conversation with your landlord about your specific situation.

What to Include in a Room Lease Agreement

Once you’ve made the decision to rent out a room and you’ve found a suitable lodger for the space, you’ll need to write a room lease agreement. Before you begin drafting the agreement, it’s vital to understand the key components of a room rental contract. Below are general important aspects of your room rental agreement to include before a lodger or tenant signs their name and moves onto the property.

1. Property Details

All information about the property and room should be clearly stated, such as the address, number of rooms/bathrooms, amenities or common areas available for the lodger’s use, etc. Other details to include range from square footage, to number of parking spaces, to appliances.

2. Contact Information

Be sure to include full legal names for both you and your lodger, as well as addresses and phone numbers in case either party should need to contact the other.

3. Lease Term Specifics

The lease should always indicate the start and end dates for the agreement, as well as the lease term specifics (12-month fixed lease or month-to-month/week-to-week lease) to avoid any possible confusion when it comes time for a lodger to move out.

4. Monthly Rent Amount

One of the most important aspects of a rental agreement is the amount of rent due each month (or week, if on a week-to-week lease). The exact amount should be clearly stated, as well as the due date each month/week and information about grace periods and/or other tenants rights.

5. Details About Other Charges

Other charges must be included in the lease as well, such as the security deposit (and how it will be used for property damages), pet rent, late fees, utilities, and any other fees a lodger may be responsible for while living in one of your rooms.

6. Roommate Agreement Rules

A room lease agreement is similar in many ways to a traditional lease, but a lease’s house rules become more applicable when you’re living in the same space as your lodger. Be as specific as possible on your room rental contract when it comes to quiet hours, guest rules, pets, and shared space usage to avoid any confusion or disagreements with your lodger later down the line.

Conclusion

While many people rent out entire properties in the real estate industry, room renting to a lodger is a great option for those with extra space in their home or those who need to sublease part of their rental. With this new knowledge of how to craft a room rental agreement, you’ll be ready for your new roommate with a lease that provides clarity for both you and your lodger.

FAQs

What is a room rental agreement?

A room rental agreement is a legal contract between a landlord and a lodger who rents a single room in a shared home. Unlike traditional leases, it outlines the rights and responsibilities for living in a room rather than an entire property.

How is a lodger different from a tenant?

A lodger shares the home with the landlord and has a "license to occupy" a room, while a tenant typically has “exclusive possession” of a full rental unit.

When should I use a room rental agreement?

You should use a room rental agreement when you're renting out a room in your home or subleasing a room to a subtenant as an existing tenant, especially when the living spaces are shared.

Who maintains control over common areas in a room rental?

In a room rental agreement, the landlord typically retains control of shared spaces such as the kitchen, bathroom, and living room, and may set specific rules for their use.

What should be included in a room rental agreement?

Key elements of a room rental agreement include property details, lease term, rent amount, contact info, utility costs, and any additional fees like pet rent or security deposits. Additionally, consider adding guidelines for quiet hours, guest policies, pet rules, cleaning responsibilities, and usage of shared spaces to avoid misunderstandings.