Room Rental Agreement Template

What is a Room Rental Agreement?

Imagine this—you pay a lot for a mortgage but cannot maximize your spacious property. Instead of leaving your extra rooms vacant, you invite other people to live with you. In turn, they contribute to your mortgage, making your setup a win-win situation. This is exactly what a room rental is. To give you more insight into this mutually beneficial lease arrangement, here are some definitions:

• Owner – The homeowner is considered the “landlord” who receives the rent from the tenant.
• Renter – The person residing in one of the property’s rooms. He or she is also called a “tenant.”
• Room Rental – A lease in which a tenant only rents a room in a property. He or she pays the rent directly to the owner who may or may not be living in the same property. In a room rental, the tenant normally does not have access to other rooms but can use shared areas like the kitchen, laundry area, or living room.
• Residential Lease Agreement – This type of lease is the general category of a “room rental” as it specifies all legally binding terms.
• Room Rental Agreement – This functions as a residential lease agreement but charges a significantly lower monthly rent. Though it encompasses the terms in a typical residential lease, this lease also gives great weight on house rules and security measures.

Most landlords also ask the question, “What if I don’t live on the premises?” This is also a common situation wherein the landlord stays at another address. In this case, he or she might rent out different rooms to different tenants and the process is the same, only repeated several times.

Room Rental vs. Roommate Agreement

Though the difference can be confusing, you can clearly distinguish between official room rental agreements and roommate agreements. If you’re a tenant, it’s critical to find out what you’re signing, so here are some questions to answer:

What is the payment process?

If your roommate receives the rent for you and pays it to someone else (possibly the owner), then you might be in a roommate agreement.

Is your agreement legally binding? 

The only legal aspect of a roommate agreement is its financial aspect. If the agreement details how the rent is “shared” between two people, then that might possibly be a roommate agreement. However, if it’s formatted like a residential lease where there is a clear-cut landlord or owner, then you’re safe and it’s a room rental agreement.

Who is the signatory?

Check if the signatory to your lease agreement holds the deed to the home. Otherwise, your roommate might also just be another tenant.

What terms and provisions are covered?

Room lease agreements are very thorough and cover special paragraphs or government-mandated provisions (see “Filling Out the Room Rental Agreement”). If your lease agreement only details the house rules and financial aspects of the lease, then that might only be a roommate agreement.

What is it called?

A roommate agreement is also called “Joint Lease,” “Rent-a-Room Agreement,” or “Roommate Contract.” If the document you’re signing is entitled in a similar fashion, you might have to double-check.

As far as leasing goes, it’s always best to be the primary tenant or renter, so you can directly talk and negotiate with the owner. One technique you may use to confirm is to ask for the real estate documents.

For landlords, make sure that the template you’re using is not a “roommate agreement” as this can be quite tricky to implement, especially from a legal standpoint. Here’s a summary for your reference:

Room Rental Agreements

• Payment goes directly to the owner
• All sections are legally-binding
• The owner signs the lease agreement
• Contains terms about legalities
• Also called “Room Lease”

Roommate Agreements

• Payment goes to the roommate
• Only the financial provision is binding
• Another tenant signs the lease agreement
• Terms are mostly room responsibilities or rules
• Also called “Joint Lease” and “Rent-a-Room Agreement”

Advantage and Disadvantages of Room Renting

A room rental is the quickest solution to mutual financial gain. Still, it’s also the fastest way to land in very complicated situations. Before you enter into this type of residential lease agreement, here are some points to consider:

ADVANTAGES FOR THE LANDLORD:

• You’ll have extra income.
• You have other people living with you in case of emergencies.
• If you’re an extrovert, you’ll love having other people around.

DISADVANTAGES FOR THE LANDLORD:

• You’ll need to balance between being a friendly “roommate” and a respected “landlord.”
• If you don’t have a good set of house responsibilities, tenants may not keep the premises clean and tidy.
• If you’re not staying on the premises, you’ll need to hire property managers or check on your place now and then.
• With the pandemic, you’ll need to be extra cautious with how you navigate around your own home. Having other people on your property can make you more prone to catching the virus.
• If you’re not staying on the leased premises, you’ll still need to monitor your tenants. Don’t worry, Section 8 of our agreement (Insurance and Non-liability) states that landlords are not responsible for COVID-19 as long as they follow protocols.

ADVANTAGES FOR THE TENANT:

• Renting out a room instead of an entire property will help you cut costs.
• You have other people living with you in case of emergencies.
• Sharing a room or a property can be a great start to lifelong friendships.
• It will help you form good habits such as regular cleaning.
• Though it will be difficult, you cannot be kicked out of the leased premises if you need to self-quarantine.

DISADVANTAGES FOR THE TENANT:

• If your landlord is also your roommate, it can get quite awkward if you miss payments.
• It’s difficult to live with other people who don’t share the same values or attention to cleanliness.
• With the pandemic, you’ll need to be extra cautious with how you navigate around your own home. Having other people in your property can make you more prone to catching the virus. The landlord won’t be responsible for the implications of COVID-19 for you and other tenants.

When you weigh the pros against the cons, it’s tempting to back out from sharing a room with others. However, this can be easily solved with a detailed room rental agreement and a good set of guidelines, which we discuss in the next sections of this article.

Finding a Good Roommate for Your Property

A good tenant makes a room rental easier for everyone in the home. These four steps help you find a person who fits your household, from the first advertisement to the first meeting with the other tenants. Take your time with each one.

• Advertise your property
• Get to know the potential tenant
• Do a background check
• Get them acquainted with other tenants

Step 1— Advertise your property

The manner in which you advertise your property will either attract a great crowd or a bad one. Take pictures of tidy living spaces and write clear information about your lease vacancy so that you can draw in a potential tenant who best fits your requirements. Ask yourself what type of tenants you want to share your property with and what type of people fit your values.

Be careful with your words, though. Your advertisement must still follow the Fair Housing Act, which requires landlords to advertise their vacant rooms without any discrimination.

Step 2— Get to know the potential tenant

Get to know your potential tenant, and let them get to know you. A simple document tells you a lot, but a chat shows you their personality.

Ask about their likes, dislikes and hobbies, and about the type of people they spend time with. The answers hint at how your co-living will go. Chemistry helps you live in peace and keep good relations. Your tenants will be the first people you see in the morning, after all.

Step 3— Do a background check

Most people think of a credit score or criminal records when they hear “background check.” In a room rental, you can also look at personality and lifestyle.

After you check the records and call the references, chat with their old landlord. Ask how the applicant followed the lease. A tenant who respected the old lease is likely to respect yours.

Two quick signs of lifestyle:

• If they own a car, check how they maintain it. Is it messy?
• If they have pets, check whether the pets are well-groomed and well-mannered.

These hints give you an idea of how they will use the appliances and areas on your property.

Step 4— Get them acquainted with other tenants

Once your potential tenant passes your initial screening, let them meet the other tenants. Ask your existing housemates what they think of the newcomer. Their view can help you avoid fights and “cold wars.”

In a room rental, maintaining household harmony is part of the unwritten contract of a room lease. It is therefore one of the landlord’s obligations.

What Should Be in Your House Rules?

Whether you want your household rules simple or very detailed, here are some conditions and expectations you may want to add as you draft it. Write them down and share them before the tenant moves in, so everyone starts with the same picture.

1. Cleaning duties (You can also have a calendar of responsibilities for shared areas.)
2. Respect for bedroom assignment (e.g., No entry regardless if the door is locked or not.)
3. Appliance use (e.g., Turn off the air-conditioning when not in use.)
4. Internet use (e.g., Only two devices connected at a time.)
5. Kitchen use (e.g., Clean as you go.)
6. Area use of other shared living spaces (These can also be posted on each area such as the laundry room.)
7. Payment obligations (e.g., If the lease does not cover payments of extra utilities such as satellite TV connection or the Internet subscription, how will the tenants settle the payments?)
8. Damages (Who will be responsible for repair?)
9. Security Measures (e.g., Always lock the door when leaving the premises.)
10. Having guests (e.g., A maximum of two guests are allowed to stay overnight, provided that the landlord is informed. No parties shall be held at the leased premises.)
11. Quiet Hours (e.g., A tenant must observe 11 p.m. to 6 a.m. as quiet hours.)
12. Behavioral Expectations inside the property

Room Rental Agreement Form Details

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Filling Out the Room Rental Agreement Form

These steps follow the FormsPal Room Rental Agreement template in the order the form is printed. The PDF has 68 fillable fields, so fill in only the parts that fit your arrangement. Each step shows a screenshot of the form filled with sample entries.

The screenshots under each step show the FormsPal Room Rental Agreement template filled with sample entries in blue, so you can see where each answer goes. The names, addresses, dates and amounts are examples only.

Download the template with the PDF file link at the top of this page, then open it in the PDF editor to type into the fields.

Have these details ready before you start:

• the names of the owner and the renter
• the address of the property and a description of the room
• the rental term, the rent, the due day and the late fee
• the security deposit amount
• phone numbers and email addresses for both sides
• any special terms you agreed on

Step 1: Names of Owner and Renter and the date

On page 1, write the Owner's name, the Renter's name and the date of the agreement in the three blanks of the opening paragraph.

The Owner is the landlord who rents out the room. The Renter is the tenant who lives in it.

Step 2: Section 1(a): property, room and parking

Enter the Property Address, a Description of Room and a Description of Parking Rights. Write N/A on the parking line if there is none.

• Write the address in full: floor, building or house number, street, city, county, state and zip code.
• In the room description, add the size in square feet and any distinguishing features.

Step 3: Section 1(a)-(b): bathroom and shared rooms

Tick Private Bathroom or Shared Bathroom, then tick each shared room Renter may use: Kitchen, Laundry Room, Dining Room, Garage, Pool/Spa and the others listed.

Part B talks about shared spaces or facilities in the leased property. You may tick areas that are open for your tenant’s use. If there are any additional fees or extra charges for utilities in these areas, you may discuss the amount under Section 3 (Rent).

As an alternative, you may open these spaces for your tenant and simply add your projected cost into the rental per month. This can save you from complicated monthly calculations.

If you prohibit access to certain areas like the basement, storage area, or indoor theater, make sure that you lock these to avoid misunderstandings. Any damages to these areas will be settled by the tenant who has obligations to repair.

Parts C and D contain standard and mandatory clauses, which are common in other rental agreements. This has also been adjusted to abide by local and national health protocols for COVID-19 and other viral illnesses. As the landlord, it is best to emphasize these to the tenant to prevent any problems should he or she be required to self-quarantine.

Step 4: Section 1(e)-(f): occupants and overnight guests

On page 2, write the maximum number of Adults and Children in the Room, then tick Permitted, Prohibited or Subject to Owner's prior approval for overnight guests.

Part E discloses the number of allowed occupants inside the room who are also covered by the cost of the room rent. These people will also be encompassed by the terms of use in the contract.

For overnight guests, choose one option:

• Tick “permitted” if guests are allowed to stay overnight
• Tick “prohibited” if no guest can sleepover
• Tick the last box if the owner will decide. In this case, the tenant will usually have to put this request in writing and disclose information about the guests.

Step 5: Section 1(g): pets

Tick one box: Permitted, Prohibited or Subject to Owner's prior approval/case by case.

Just like the previous part, Part G requires you to choose only one option. Tick the box that applies. Should the owner or landlord tick the third box, the tenant must show pictures of his or her pets. Both parties must have this acknowledged in writing.

Step 6: Section 1(h): furniture

Tick The Room is furnished and list the furniture on the blank, or tick The Room is unfurnished.

Step 7: Section 1(i): bedding, towels and dishes

Tick whether the rental includes use of provided bedding, towels and dishes or does not include them.

In short-term rentals, owners often provide bedding, towels and dishes. In longer rentals, the renter usually brings their own, so the second option fits.

Step 8: Section 2(a): rental term

Tick Month-to-Month, or tick For a term of and write the length, or tick For the following date range and write the start and end dates.

The term is how long the rental lasts. It is separate from “terms”, which means the conditions, rules and obligations in the contract.

• Month-to-Month: the agreement renews every month.
• For a term of: write the number of months, such as “six months”.
• For the following date range: write the start and end dates, such as “March 1 to August 31”.

Parts B, C, and D discuss how the room rental agreement will expire depending on the term chosen in Part A. These are standard and there is no need to revise the above terms.

Similar to the previous parts, Parts E and F are also non-editable as these terms direct the action that the tenant must follow when the room rental agreement expires.

Step 9: Section 3(a)-(b): rent, due day and late fee

On page 3, write the rent amount and the period it covers, the day of the month rent is due, and the late fee amount.

• Rent: write the amount in dollars, such as “$200.00”.
• Period: write “month” for the standard monthly rent.
• Due day: write it in ordinal form, such as “6th day of each month”.
• Late fee: write a dollar amount or a percentage, such as “$10” or “5% of the monthly rental”.

Step 10: Section 3(d)-(e): utilities and extra rent terms

Tick whether the rent includes utilities or Renter pays a separate utilities amount, and fill that amount and period. Use the 3(e) lines for any other rent terms.

• If the rent includes the utility bills, tick that box and leave the amount blank.
• If the renter pays for utilities separately, tick the other box and write the projected monthly amount.
• Use the lines under 3(e) for any other rent terms, such as a due date for shared bills.

Step 11: Section 4: security deposit

Write the security deposit amount in the blank at the start of Section 4.

Having a security deposit is recommended for a new tenant, especially in a room rental agreement where they will have access to your belongings. The deposit fee may go as high as 150% of the monthly rent. This will ensure that renters won’t just disappear or discontinue the lease without notice. If they do, the security deposit will cover the cost of utilities, repair, and unpaid rent.

Step 12: Section 5: contact information

On page 4, write the name, phone number and email address for both the Owner and the Renter.

In a room rental agreement, landlords may be renting out other rooms to other tenants or they may be staying in the same place. Either way, the agreement must detail where any written notice must be sent.

Step 13: Section 7: assignment and subletting

Tick one box: Permitted, Prohibited or Subject to Owner's prior approval/case by case.

Section 6 (Quiet Enjoyment) and Section 7 (Assignment and Subletting) tackle how the tenant will use the lease premises.

Since room rental agreements are complicated due to security concerns and its health implications, it is highly suggested that the owner chooses either the second or third box.

Step 14: Section 10: your own terms and provisions

On page 5, write any extra agreed terms on the lines under Section 10. Leave them blank if there are none.

In the blank provided above, you may list separate guidelines or tenant responsibilities that were not in other sections of the room rental agreement template. These may cover room renovation or rules regarding shared areas. If the list is lengthy, the landlord may attach this as a rider document to the room rental agreement.

Step 15: Signatures and printed names

On page 6, the Owner and the Renter each sign on their Signature line and print their name on the Print Name line.

The final part of the lease agreement form requires the landlord and tenant to affix their signature (lines 1 and 3).

How to Sign and Use the Room Rental Agreement

Some parts of the form have no blanks, but both sides should still read them before signing. Go through the steps below in order, then sign the printed form and keep a copy each.

1. Read Sections 8 and 9 of the form.

   Toward the end of the room rental agreement, the following standard terms must be explained to the tenant:

   

   In Section 8 (Insurance; Non-liability of Owner), the landlord must advise the tenant to get insurance. By doing so, the landlord will not be held responsible for any losses that the tenant will incur while staying in the room or other areas of the property.

   Section 9 (Default) is standard for any lease agreement. It explains that if ever the room rental agreement is breached, the responsible party must repair or address the problem. The eviction process and legal actions are also explained in this section of the agreement.

2. Read Section 11 of the form.

   

   Section 11 (Additional Terms and Provisions) details the legal standards of the room rental agreement. These must be read thoroughly by both parties in order to understand the true weight of the agreement.

3. Print the form and sign it on the Owner and Renter signature lines, as shown in Step 15.
4. After this, they must also sign on each page of the finalized room rental agreement.
5. Give each side a signed copy and keep one for your records.

A room rental agreement does not have to be complicated, but it does need to be thorough. Include all the details of your arrangement and the renting process gets much easier.

Good relationships matter just as much. The person renting out the room is also the person you will live with, so being on the same page makes life more comfortable.

Frequently Asked Questions

Room Rental Agreement Meaning

A room rental agreement is a lease between an owner and a renter for one room in a home. It covers the room, the shared areas, the rent and the house rules.

Creating the Agreement Online

Click Create My Document at the top of this page and answer a few simple questions. Then save your progress, download the document and print it.

Time to Fill Out the Form

The average time is about 12 minutes. The PDF has 68 fillable fields, and you fill in only the parts that fit your arrangement.

Details to Have Ready

Have these details ready:

• the names of the owner and the renter
• the address of the property and the room
• the rent, the due day, the late fee and the deposit
• your choices on guests, pets and furniture

Room Rental and Roommate Agreement Compared

In a room rental, the rent goes directly to the owner. In a roommate agreement, the rent goes to a roommate. The comparison near the top of this page lists the main differences.

Filling Out the PDF on Your Computer

Yes. Download the PDF, open it in a PDF editor and type into the fillable fields. Then save, print and sign it.

General information, not legal or tax advice.

Jennifer M. Settles

Author & Attorney

With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.