Renting out a room in your private home can be a great way to earn extra income while sharing your space with another person. However, it’s important to have a clear and comprehensive room rental agreement to protect both you and your tenant. Here are some key elements to include in your agreement:
1. Rent and Payment Terms
Clearly state the rent amount and when and how it should be paid, such as on the first of each month via electronic transfer. Include details on late fees, bounced check fees, and any other penalties for missed payments.
2. Security Deposit
Specify the amount of the security deposit, how it will be held, and the conditions under which it will be returned. This should include any deductions for damage or cleaning beyond normal wear and tear.
3. Term of Lease
Include the start and end date of the lease, and whether it will automatically renew for another term.
4. Use of Common Areas
Outline which areas of the home are shared by you and the tenant, such as the kitchen and living room, and any rules for using these spaces. For example, you may want to specify quiet hours after 10 PM or restrictions on overnight guests.
5. Maintenance and Repairs
Specify which party is responsible for routine maintenance and repairs, such as changing light bulbs or unclogging drains. Also include a procedure for reporting and addressing maintenance issues that arise during the tenancy.
6. Pets and Smoking
Specify whether pets are allowed and any restrictions on breed or size. Also include any policies on smoking and drug use in the home.
7. Termination of Tenancy
Include the conditions under which either party may terminate the tenancy before the end of the lease term. For example, you may allow the tenant to terminate with 30 days’ notice or reserve the right to terminate if the tenant violates any of the terms of the agreement.
By including these elements in your room rental agreement, you can help ensure a positive and mutually beneficial tenancy. It’s also a good idea to have an attorney review your agreement to make sure it complies with local laws and regulations.