25+ Best Free Room Rental Agreement Templates [Word+PDF]

room rental agreement

One of the key business industries belongs to rental products which are given to the customer for a specified period of time under certain terms and conditions which are defined in an agreement. The room rental agreement template and lease agreements are most commonly in practice agreements in the real estate business. Although it’s just doesn’t belong to the real estate. There are a number of things which are available in the market as rental or to be leased such as;

  • Vehicles
  • Dresses
  • Text Books
  • Camera Lense
  • Sports and Fitness Equipment
  • Pets
  • Construction Machinery
  • Construction Accessories and Tools
  • Big Malls to small shops
  • Apartments and Rooms
  • Hotels and Restaurants

What is a room rental agreement?

A room rental agreement is a legally binding agreement between the owners of the room and tenants. It contains clearly outlines the responsibilities of both parties, upon signing, and implements those specific duties and obligations on them. This agreement enables you to feel secure enough to rent out one of the rooms in your home.

The difference between room rental and roommate agreements:

There are several notable difference between room rental and roommate agreements;

A room rental agreement is also referred as a sublease used when a tenant wants to sublet their room to another party. On the other hand, a roommate agreement is known as a housemate agreement or a roommate contract use when moving in with a new roommate or have found a new roommate.

The room rental agreement requires landlord’s approval of the sublease and incorporates elements of the original lease agreement. While, the roommate agreement doesn’t usually require the landlord’s permission and independent of the original lease agreement. You may also like client intake forms.

When do you require a room rental agreement?

If 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 then you should use a room rental agreement. This agreement is also used to clarify expectations, responsibilities, and obligations of both parties and to promote a harmonious living environment. Moreover, to curb potential issues this agreement proves great before they escalate and enable parties to open up communication channels.

Who will be renting your room most likely?

These days, buying your own home is getting more and more expensive. Therefore, people are starting to opt to rent instead of buying. There are various types of people who like to rent a room. Also, it is essential for you to get to know your tenants. You should also check rent roll templates.

You can use the time while discussing the room rental agreement to get to know the people who plan to rent your room. This way, you have enough information and peace of mind. Here is a list of people who will be most likely to rent your room;

  • Individuals: in the area where your room is located, students, young professionals or people who have a business, but they already have their own home in another area.
  • Couples: husband and wife as well as same-sex life partners.
  • Families: the small families who are waiting for their more permanent residence to be ready, they may rent a room.
  • Friends: for convenience, students or other people who like to live together.

When it comes to renting a property, house, apartment, or room. A landlord can make money out of his place in a number of ways. It’s crucial for him to decide about what exactly to do with his property. A number of critical thinking sessions are involved in this approach to identify and evaluate the best decision about vacant land. Either to make a hotel, restaurant, apartments, shops or a mall, etc. The following factors contribute in decision making such as;

  • Market Analysis
  • Location of Vacant Land
  • Available Resources
  • Security
  • Investors Interest
  • Business Feasibility Study

There are many questions that arise in the mind of tenants also, who are looking for a comfortable place far from their own home to live for a certain period of time. A landlord needs to keep all such questions in mind as well before deciding about what to do with his property. Most commonly under consideration points are;

  • Affordability
  • Employment Opportunities
  • Crimes rate and Statistics
  • Education System
  • Availability of Public Transportation
  • Healthcare Facilities

Another decision is to decide, how to involve in the business. Go for a rental or lease agreement. As there is a slight difference in rental and lease agreements which can be understood as below;

  • In a lease agreement, the leaser gives the right to the tenant to use his property for a specified period of time from months to years under specified terms and conditions of rent and other regulations. In this agreement, the property is managed by the lessor.
  • In a rental agreement, tenants just got the right to use the property for a shorter period of time such as month to month agreement. After each month the agreement expires and the landlord may change the rent and regulations. Such kind of contracts has more leverage for both the parties. In this agreement, the property is managed by the tenant.

A Generic Room Rental Agreementanswer the following questions about both parties involved in the agreement;

  • Who: Under this question, both the tenant and the landlord details are specified. It specifies in detail a description of who is gonna live in the room, with whom, and how many any children. It describes the regulations about what things are allowed and what not. Such as keeping pets and how long the guests may stay at. It also gives the right to the tenant to understand how much interference of the landlord is allowed and under which circumstances.
  • What: It describes the real property in detail. Every facility has been provided by the landlord in the room is described under this section. A third-party analysis on the condition of the room while surrendering by the landlord is presented in this section to avoid any conflict of interest in future unpleasant circumstances.
  • When: The implication of the Basic Room Rental Agreement and validity period is defined under this section. Does it answer the questions like for how many months, quarters, or years the agreement is valid? What are the conditions to extend the agreement? What are the penalties if the landlord or tenant infringes the agreement terms?
  • How Much: It defines the rent, rental period, and security deposits. How things will be settled after completion of the agreement is also defined under this section.

Printable Room Rental Agreement Template

Most of the small real estate dealers use a simple printable Room Rental Agreement Template Word Document. It carries all the necessary information that is required to be written on the rental agreement as well described above. Room rental agreement key words sound like this;

  • Date (Start and end date of agreement)
  • Tenants (Define Principal Tenants)
  • Rent (Payable rent and security deposit)
  • Premises (Address)
  • Utilities (What utilities are available and how bills will be divided?)
  • Obligations and Duties (It describes the basic duties, chore, and obligations of tenants toward the lease)
  • Legal Considerations (Renters Insurance, damages, early termination, and share costs)
  • Behavioral Stipulations (Parties, Overnight guests, smoking and alcohol, cleanings expectations, and Pets)

A Room Rental Agreement form is attached with terms and conditions that include the personal details of both parties and the rental room. Reference to this form is made in legal terms as well. The following information of each tenant and landlord, and facilities available at room is captured via this form;

  • Names
  • Address
  • Phone Number
  • Email Address
  • National Identity Number
  • Occupation
  • Furniture available in the room
  • Other facilities available in the room
  • Third-party condition analysis score of the room

Uses for a room rental agreement:

The tenant has a boyfriend or girlfriend

A room rental agreement can help set boundaries when you are wary of your roommate or other tenants having their significant others over 24/7. After all, over all the time, having someone who is not covered under the lease might result in increased electricity, utility bills, and precarious situations.

Your roommate has someone continuously staying over

This agreement is essential to keep your place private, quiet, and undisturbed. It enables you to outline days of the week when roommates can’t throw parties, cause excessive noise, or have uninvited guests.

When you want to hand out household expenses and other costs

No one wants that the other sits back and does nothing and they be the only roommate washing dishes or paying for cleaning supplies. Executing a room rental agreement enables parties to identify how household and other essential costs are divided. You may also see rental reference letters.

You want to hand over respective property maintenance duties

Someone will have to shovel the driveway, decks, and other community areas during winter months. While, someone in summer have to mow the grass and attend to other general lawn-care duties. For basic maintenance duties, the burden should not fall solely on one party. So make sure you provide for these situations in your agreement.

You want to develop quiet hours

For roommates and potential tenants, noise complaints are among the most common causes of concern. It is essential to develop quiet hours for not only a tenant’s comfortability but also their sanity.

Possible Consequences of not having a Room Rental Agreement Template

There are many possible consequences of not having a room rental agreement in the first place. It will impact both the landlord and the tenant. Keeping in view these consequences both parties will feel safe making a room rental agreement before coming into a service relationship. Following are one of them for sure consequences that will be faced in case of any conflict in both parties;

  • Loss of Money: In form of not getting outstanding rental payments or paying more rental and losing up a security deposit.
    – Loss of Time: It can be faced in the form of conflicts over unspecified behavioral stipulations and the early departure of a tenant without any notice.
  • Loss of Property: It includes the complete loss of property to a certain magnitude of damaged caused by the tenant.
  • Mental Distress: Strained matters between both parties over late payments and behavioral issues will be marked as a headache for both parties.

How do you write a room rental agreement?

Here are the steps to write a room rental agreement;

Step#1; fill in room rental agreement details

  • Date of agreement: provide the effective date of the agreement form.
  • Principal tenant name: provide the full name of the principal tenant. Principal tenant is the individual renting the room to the subtenant.

Step#2; identify property address

  • Property address: type the street address of the room the person is renting to the subtenant. Enter any room, unit, or apartment number.

Step#3; provide the lease details

  • Term or length of lease: fill in the start date of the lease. Enter the end date of the lease or the date that the lease continues on a month-to-month basis.
  • Tenant name: enter the complete name of the subtenant renting the room. The monthly rent amount, security deposit amount (if any), and a description of the room rental should be included.

Step#4; fill in any security deposit amount

  • Total security deposit: specify the total amount of the security deposit for the property. This must be indicated in the original lease agreement.

Step#5; explain how tenants will share utilities

  • Utilities included in rent: mention whether or not the rent includes any utilities. In case, yes, specify a list of all utilities.
  • Utilities not included in rent: state whether or not the tenants will share the utility amounts for utilities not included in the rent. Provide the name of the person listed on the utility bill and how tenants will share the costs in case tenants will share the utility amounts.

Step#6; enter parking details

  • Parking details: indicate whether or not the room rental contains parking privileges. Provide the subtenant’s name, vehicle description, and parking spot in case parking is included.

Step#7; write any legal considerations

  • Renter’s insurance: specify whether or not the subtenant requires to buy renter’s insurance. In case, yes, give the following details;
    1- The name of the insurance company
    2- The monthly rate of the insurance policy
    3- The name of the signer(s) on the policy
  • Early termination: provide the number of months’ notice the tenant must provide to terminate the room rental agreement.

Step#8; fill in behavior stipulations

  • Pets: state whether the subtenant can have pets on the property or not. Provide the pet’s name, type of pet, and the pet owner’s name in case the principal tenant allows pets.
  • Chores/household duties: determine how often the tenants will discuss household duties.
  • Overnight guests: specify whether the subtenant can have overnight guests or not.
  • Noise level/quiet hours: write start and end times and any quiet hours.
  • Parties/entertaining: you can select to indicate the maximum number of friends allowed over at a time. State the number of days’ notice prior to the event the subtenant must discuss with the principal tenant if a subtenant wants to invite more than the number specified here. Mention the number of days’ notice prior to the event the subtenant must discuss with the principal tenant in case a tenant wants to host a large gathering.
  • Smoking and alcohol use: indicate whether the principal tenant allows smoking or alcohol on the property or not. If allowed, then state particular smoking areas and particular hours when the subtenant can drink alcohol.

Step#9; identify additional terms

  • Governing law: determine the state’s laws that instruct the construction of this room rental agreement.

Frequently Asked Questions (FAQ)

Which things should be included while drafting the Room Rental Agreement?

Following are the things that should be included while drafting the room rental agreement;

  1. At first, enter the name of all the tenants who will be renting the room. You have to mention all the adults involved in the tenancy. In the case of a family, not only the head of the family as well as all the adult members of the family should be written down.
  2. Then, make limitations of the tenancy. The agreement should establish that those people are allowed to live in whose names are mentioned on it.
  3. Next, describe the terms of occupancy. It involves the terms of tenancy, whether it’s a fixed-term rental or a simpler rental agreement.
  4. Mention about the rental fees. It indicates the amount of rent that when and how the rent has to be paid.
  5. The amount of security deposit should also be mentioned in the agreement. You have to mention how this amount will be used and when it will be returned.
  6. The agreement should clearly indicate the responsibilities of tenants in terms of maintenance and repair. This thing enables the tenants to protect the owner’s property.
  7. The room rental agreement has to indicate the restrictions on illegal activities made by tenants.
  8. The owner should also mention the rules of pets that whether you allow pets in the room you are renting in your agreement.
  9. In the end, you can also add other limitations such as rent control regulations, safety, and health policies, and tenancy and antidiscrimination rules and laws.

Why a room rental agreement is an important?

Room rental agreement can be beneficial for a number of significant reasons that are described below;

  • The agreement clearly explains the legal rights of the tenant because most of the tenants are unaware of their rights as renters.
  • It develops an official agreement between the tenant and the landlord.
  • To enable the landlord to make proper inspections at agreed-upon times.
  • To arrange a set up of rent increases.
  • If the tenant doesn’t follow the agreement then the owner has the right to terminate the tenancy.
  • In short, in the whole renting process, it creates peace of mind for both the owner and the tenant.

Who will be best suitable for renting your room?

There are different types of people who are best suitable to rent a room and it is significant for you to get to know about your tenants. You can give the people room for rents such as individuals (students, young professionals or people), couples (husband and wife), families (small families who are waiting for their permanent residence to be ready), and friends.

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