What are Room Rental Agreements?
When constructing our comprehensive room rental contract form, it was important for us to first understand the general purpose and fundamentals of a simple room rental contract. A "room rental" is a generally informal system for someone to pay to stay at another person’s property for a rate agreed between them. However, if you are renting out property, a rental contract is considered an important aspect for a solid foundation of any room rental practice. It not only sets in writing the agreed rental terms between you and your client, but it protects your interests from disputes and subsequent legal problems down the road.
Plainly speaking, a room rental contract sets the agreement the landlord and the tenant has made regarding the rented premises, like bedroom, bathroom, kitchen privilege, or what have you. Because of its legal nature , the assisted party should seriously consider creating a written record of the terms and conditions of the room rental, thus creating the contract. The contract not only spells out the terms of the agreement, but protects both parties from any breach of agreement.
For example, it is not uncommon for a tenant to move in and discover that the kitchen cabinet is shaky or the toilet leaks, a fact that was not disclosed before they moved in. A formal contract would have been able to prevent arguments and potential lawsuits.
A formal, comprehensive contract sets can set the terms of the use of common areas, restricting it to only certain guests, or what areas are off-limits to guests or roommates.
Many landlords will require a signed waiver of liability or notice of non-liability for theft, fire, damage, injury, or loss, which can be included as an addendum to your room rental agreement.
The Elements of a Room Rental Contract
When writing your rental contract for a room in your home, consider the following core components and make sure to include them all in your form:
The Parties. You should clearly identify the parties involved in the agreement. In other words, identify yourself, the owner of the home, and the tenant. Include all applicable parents or other financial parties that will be responsible for payment.
The Term. Identify the expected term of the rental contract, including move-in date, length of contract, rent due dates etc. Make clear whether this is a month-to-month rental term subject to termination or a fixed-term rental contract.
The Rent. What is the rent payment? How much money does the tenant owe you on a monthly basis? Is the rent prorated if the tenant doesn’t live in the home for the full month? When do you require payment? What happens if the tenant never pays? How long do they have to pay before you can terminate the contract for unpaid rent?
Any Deposits. Do you require any deposits from your room renter? Consider security deposits, pet deposits, keys deposits and any other types of deposits you may require.
The Rules. Lay out the rules of your home that must be adhered to for the duration of the room rental contract. Be thorough, and make it clear what happens if the rules are violated. What will you do to remedy the situation, and what is your process for terminating the contract if needed?
The Termination. How is the contract terminated? By you? By the renter? Under what circumstances? When a person must vacate the room, how much notice do you need, and what type of notice do you require?
Room rental contracts may seem relatively simple to draw up, but they’re often the most contentious rental agreements. Homeowners who’ve had bad experiences with room renters understand that this type of rental contract is potentially disaster waiting to happen.
Give some thought to your room rental contract, and go into it knowing that you understand the situation that could arise if you don’t go in prepared.
How to Personalize a Room Rental Contract Form
Customization of a room rental contract form is essential to ensure that the terms of the contract reflect the individual needs of the landlord and tenant. Although there is a standard template for room rental contracts available online for download, customize this document by adding clauses to address specific areas of concern.
For example, add an addendum to address security deposits in the event of damages caused to the premises by the tenant. It is also possible and perhaps advisable to spell out the types of damage that may occur. If the tenant damages your property and you do not have this type of provision in your contract, you can only hold the deposit for the amount of the actual damages. If there is no way to determine the cost of the damage because it’s a subjective opinion, like cleaning or fumigation, the tenant may argue that you went overboard in your charge. If you have added the provision above, you can deduct the costs for fumigation or whatever else and charge it against the security deposit. You may only be required to replace the damaged item (even though it is used) if the tenant loses or ruins it.
The standard contracts do not address anything about guests, domestic partners or housemates. You should add a clause prohibiting the tenant from having anyone other than those named on the agreement living in the unit, or only allowing those persons to live there. In this manner, the landlord can avoid the situation where a tenant has a girlfriend or boyfriend move in without approval. Even if the tenant is responsible for the utilities, an extra person will raise the costs for everything. You will likely want to charge extra for that or charge them rent as well. Sometimes guests are not allowed to stay more than two weeks—this type of provision will ensure that when a tenant gets guests, they are only there on a temporary basis and you are protected from paying for their utility costs.
Utilities should also be spelled out plainly in the agreement. Are the tenant’s lights included in the rent? Who pays for toll calls on the phone? Is there basic cable for everyone or just for the tenant? Is there a separate telephone or fax line for the tenant or are all of the line charges to be equally split?
Payment of rent is another area of your contract that should be customized. The lease form in PDF format provides that rent should be paid at the first of the month. Is this really how you wish to have it outlined? If your tenant is paid twice a month, it may make more sense to have rent due on the 15th or split it into two payments.
You will likely want to outline the consequences for late payment of rent. For example, a tenant will accrue a $50 charge for each day that the rent is beyond 10 days late. This will work great for the landlord who needs to pay the mortgage and utility bill when these payments are due.
Lastly, think of any other clauses that might be included. Do you want the traffic court to be within the county? You may wish to use the justice of the peace court nearest the premises, so that any dispute can be heard and resolved quickly.
Legal Considerations for Room Rental Contracts
In order for a room rental contract form to be enforceable, it must be written in clear and unambiguous language. If a person cannot easily determine the scope of the agreement or the obligations of the parties, then the rental contract form may end up being deemed unenforceable. A rental contract should specify the amount of rent the lessee is required to pay, the length of the lease term , as well as the date of the first rent payment and how the rent should be paid.
Both landlords and tenants need to ensure that their lease agreements comply with local landlord-tenant laws. In order for a rental agreement to be legally binding, it should be signed by both the landlord lessor and the tenant. This means that the landlord and tenant should read the rental contract carefully before affixing their signatures. After everyone has signed the rental agreement, each party should keep a copy of their signed copy.
Mistakes to Avoid
When creating a room rental contract form, there are common mistakes that should be avoided at all costs. Landlords and tenants alike typically make the same five mistakes when drafting or completing a room rental contract.
- Leaving blank spaces – Filling in all spaces is imperative. When you don’t provide the necessary details, the terms of your agreement could remain unclear and lead to misunderstandings between landlord and tenant. If there are spaces on the contract that aren’t applicable to you, fill in the space with "N/A" or "none" so that there isn’t any confusion about your intent.
- Making written changes without necessary signatures – If changes are made to a room rental contract after it has been signed by both parties, you’ll need to make sure that the landlord and tenant both sign the document again. This is to prevent one party from unilaterally making the decision to alter the terms of the agreement without the other party’s knowledge.
- Failing to update the contract to reflect changed circumstances – As situations do change, whether they be financial or personal in nature, it is important that you ensure the room rental contract remains up-to-date with the current situation. If a change affects the understanding of the room rental contract, be sure to revise it or make an addendum for the new understanding to avoid potential conflict down the road.
- Not keeping a copy of the contract on file – Keep a comprehensive copy of all of your rental contracts in a safe place, being sure to give a signed copy to your tenant(s). Remember, a room rental contract is a legally binding agreement so treat it as such. Taking time to organize this information and keeping it on file will save you both time and money in the long-run.
- Not knowing the laws that govern room rentals – Although creating a room rental contract isn’t necessarily a complex process, it’s imperative that you complete the task with the utmost caution, since you are essentially entering into a multi-thousand dollar agreement with the other individual. That’s why it’s essential that you (1) know the laws that pertain to the room rental and (2) ensure that the terms of the contract adhere to those laws. Room rental laws vary from state to state, so be sure to do some research on the laws that apply to your situation.
Resources for a Room Rental Contract Form
Section 4: Where to Find a Room Rental Contract Form Template
If you’re looking for a room rental contract form, you’re in luck. There are countless resources for you to get a hold on some reliable templates for multi-roommate rental agreements. Whether you’re scouring through Google or searching for professional resources, you’re bound to find one that works for all of your room rentals.
If you don’t want to spend a dime on a template and just need something quick, Garage Sale Nation has an excellent free rental room contract form template that you can use for your needs.
If you’re looking for something a little more sophisticated, Legal Templates and Rocket Lawyer are two sites that offer free and paid room rental agreement templates. From these websites , you can create an online room rental form that you can then download and print out yourself.
The most popular site is Legal Documents, which has an extensive database of contract and rental agreement templates with a bunch of filters so you can search for a specific agreement that you need. They even have some great examples from which you can draw inspiration.
We do want to caution that when it comes to choosing a template, many people will go for the free options and sign it without reading the legalese of the user agreement. These terms are essentially an agreement with the vendor that the document will be used only once for a specific purpose; deleting the form after you’ve done using it is considered a breach of contract.
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