Landlords who own private rooms can rent them out as per their choice. Renting rooms is particularly common when the owners themselves do not occupy the rooms. However, the tenant and owner must sign an agreement. This is a room rental agreement between the two parties. It legally binds and states some conditions and limits for both parties.
What good does a Room Rental Agreement do?
Let’s say your house is unoccupied and will remain so for the next few months. One can simply rent out all rooms to different individuals and make them sign a room rental agreement. Since you will be renting out your house, you can make them agree to your terms. Besides deciding the rent, a tenancy period can also be set. If you plan to move into your house in the coming year, you could rent out the rooms for a year. Or define a tenancy period of eleven months as a safe option. You will enjoy the year as you receive the rent throughout the year. Moreover, any tenant who fails to comply with the terms can be evicted based on the agreement.
Short Term Rental Agreement
Vacation Rental Agreement
What is Room Rental Agreement Templates?
Once you have decided to rent out rooms, you have to sign agreements with each tenant. The process could be cumbersome but the availability of room rental agreement templates has made it quite simple. A huge template collection of room rental agreements is available over the internet. All you have to do is search and download the one that suits your purpose. Print the agreement template, fill it and have it signed. Therefore, the only thing one will have to do will be to search for the appropriate template. It should outline all necessary conditions and specify when the tenant’s stay period ends. If you cannot find one of your preferences, then design one!
What should a Room Rental Agreement outline?
You can design a template for yourself if you do not find the template that matches your needs. But before you do that, you must know some terms that are necessary to mention. Below is a list and details of these:
Add fields for the name(s) of the tenant(s) and the owner:
Usually, only the head’s name is mentioned in the agreement when a family is about to move in. However, the names of other members should be included too, only as a safety measure. It would mean that they can be held accountable in case of any issue or violation.
Duration of tenancy:
The next most important would be to define the period of tenancy. This period could vary from one tenant to another if the rooms are being rented to different individuals. Whether the agreement is for a few months or a year is up to the owner to decide.
The rent amount:
Next is the rent amount to be paid each month by the tenant. The agreement must mention the amount of rent to be paid. Secondly, how the payment is to be made should also be specified. Further, a date for up to when the rent is due can also be decided. The tenant would then know that late payment could have consequences.
Repair and maintenance work:
During the stay period, the tenant will be responsible for any maintenance work required on the property. They will be responsible for keeping the place neat and informing the owner of any damage done. These responsibilities can be highlighted in the agreement.
The owner has the right to visit their property:
The owner will have the right to visit their property during the tenant’s stay because they own the property. However, the tenant’s privacy matters and should be taken care of. A limit could be mentioned in the agreement about the frequency of the owner’s visits.
Ensuring security and preventing illegal activities:
An owner’s visit to the property could ensure that their place is not being used for illegal activities. Such matters can turn into never-ending disputes. It is, therefore, necessary to avoid such happenings. So the agreement must restrict the tenant in this regard.
Renewal of the agreement:
You might want to change your mind at the end of the agreement period. For instance, you might reconsider renewing the agreement if the tenant has been cooperative on every occasion and has maintained the property. Such a scenario may or may not develop. So, as additional information, this can also be added to the agreement.
Can different tenants use the same areas on the property?
While rooms of the house are rented out to different individuals, they still can use some common areas. Every tenant has the right to use the lounge or sitting room, bathrooms, and kitchen. These are common areas and cannot be rented separately to one person.
Why are these agreements important?
Just like an owner has rights over his property, so do the tenants. A tenant who regularly pays rent has some rights to be protected too. So room rental agreements are a safe option for both parties. They help prevent any future disputes over rights or property. Most of the time, tenants are not aware of their rights. This proves disadvantageous for them. But room rental agreements save tenants from this trouble as it highlights their rights too.
Who is most likely to become your tenant?
Today, owning a house has become next to impossible. As an alternative, people are opting to become tenants rather than owners. The owner must get to know the tenants who will be staying at their place. Tenants usually include families, students, friends or colleagues, and couples.
In the end
When you are finally satisfied with the other party, you can quickly move on to the next step. Get your room rental agreement template printed and signed by your tenant. Once the terms are defined and the agreement has been finalized, you can sit back and relax. You will be receiving the rent for the specified stay duration.