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Renting a room in your home: what the agreement should say

Published · Landlords and tenants

Renting out a spare room is different from letting a whole home. You share a kitchen, a bathroom and a front door with the person, so the agreement needs to cover living together as well as rent. A short written agreement settles most of the questions that cause arguments later.

Room rental agreement, lease or roommate agreement?

A lease usually covers a whole home rented to a tenant. A room rental agreement is between the owner or head tenant and the person renting one room, with shared use of the rest. A roommate agreement is between co-tenants who are all on the same lease, and covers how they split rent and chores between themselves.

What to include

  1. The room and the shared areas: which room, whether it is furnished, and which parts of the home the renter may use.
  2. The term: a fixed end date, or month to month with a notice period.
  3. Rent: the amount, the due date, how it is paid and any late fee the law allows.
  4. The deposit and how and when it is returned.
  5. Utilities: included in the rent, or a set percentage of each bill.
  6. House rules: quiet time, cleaning shared spaces, smoking, pets and overnight guests.
  7. Parking and storage, if offered.
  8. Entry: when you may enter the room, and how much notice you give.
  9. Ending the arrangement: notice, moving out and returning keys.

Utilities: include them or split them?

Including utilities in the rent is simpler and avoids monthly bill splitting, but you carry the risk of a high bill. A percentage share is fairer when usage varies; say which bills are shared and how quickly the renter pays their share once shown the bill.

Guests and house rules

Most disputes are about guests, noise and cleaning, not rent. Put a limit on overnight guests (for example a number of nights a month), set quiet hours, and say who cleans what. Clear rules written down at the start are easier to keep than rules made up after a problem.

The law still applies

Local rental law can still apply to a room in your own home, including rules on deposits, notice and eviction, and it can give the renter rights the agreement does not mention. In the US, the federal Fair Housing Act exempts some owner-occupied buildings with up to four units from parts of its rules, but not from its ban on discriminatory advertising, and state or city law may be stricter. Check the rules where you live.

Free templates

The free room rental agreement template covers each item above, with options for a furnished room, parking, a fixed term or month to month, a late fee, and utilities included or shared. To screen applicants first, use the rental application, and ask previous landlords to fill in a landlord reference letter.

General information, not legal advice. Rental law differs between countries, states and cities.

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