Renting a room is a budget-friendly alternative, especially for those who are looking for a place to stay. Apart from that, renting a spare room in your house or apartment is one way of putting an extra buck in your pocket. For tenants and landlords to have a harmonious relationship, it can only be achieved by drafting a room rental/ lease agreement beforehand. Read More
A room rental/lease agreement is a document that outlines the terms and conditions of a lease. Its terms and conditions will often include rental/lease’s term period, expiry date, rental fees, payment option, the lease’s do’s and don’ts, as well as the parties of the lease. And more importantly, a room rental/lease agreement sets the limitations of both parties while protecting their respective rights at the same time.
According to nmhc.org, 36 % of American households are leased by their owners. And the numbers continue to rise as many people jump from one city to another to work or study. Property owners lease a spare room in their houses for extra income. And if you’re leasing one for the same reason, here are the step on how to write a room rental/lease agreement.
A room rental/lease agreement is a document that outlines the terms and conditions of the parties of a room lease. These terms and conditions are governed by state tenancy laws to ensure that leases are fair and transparent. So make sure to check your state’s tenancy laws before you proceed on writing a room rental/lease agreement.
The agreeing parties are the most important element in every agreement, as they indicate the persons bound by its provisions. The parties of a room rental/lease are the landlord and tenant. Specify who the parties are by writing their names and addresses. Aside from that, make sure that you’ve checked the tenant’s background before signing a room rental/lease agreement with them.
The lease term indicates the period that covers the lease; its duration and expiry. It also sets the conditions for the lease’s termination and renewal as well. lease terms can either be a monthly or yearly lease. And be sure to indicate the lease’s commencement and expiry dates, as well as the conditions of its termination and renewal, when writing your room rental/lease agreement.
Another important element of a room rental/lease agreement is its rules and regulations. This outlines the rights and obligations of the parties, as well as its limitations as well. This is also where the landlord imposes his authority over the leased property. In laying the rules and regulations, make sure that it is following your state’s tenancy laws.
Like most agreements, a room/rental lease agreement is not enforceable and effective unless both parties sign on it. Their signatures signify their acknowledgment and acceptance of the agreement’s terms and conditions. Make sure to always include a space for both you and the tenant to sign on when writing a room rental/lease agreement.
Writing and executing a room rental/lease agreement can benefit you in many ways, as a landlord. This document seals and finalizes the terms and conditions of the lease, as well as sets the boundaries for the tenant’s use of the leased property. This document also shows the tenant’s acceptance of the agreement’s provisions and can be used as proof should legal disputes arise.
Notarizing a room rental/lease agreement depends if your state requires it or not. However, you may notarize your room rental/lease agreement even if your state does not require it. You can also do so should you feel the need to add a layer of protection to the leased property. Aside from that, a notarized room rental/lease agreement can greatly help you in case disputes escalate into legal troubles.
There are many reasons to terminate a room rental/lease agreement. First, is when the tenant defaults in paying the rent. Second, if the tenant uses the property for anything illegal. Third, if the tenant expresses so in writing. And lastly, if the tenant violates or breaks the lease.
Conducting a background check of the tenant should be the first thing to do before entering into an agreement with them. This allows you to know the tenant’s rent history and capacity to pay, thus enabling you to determine whether to strike an agreement with them. You can do this by submitting their rental application forms to tenant screening companies and credit bureaus, or by asking the references mentioned in their rental/lease application.
The room rental/lease agreement automatically becomes unenforceable and void if the tenant doesn’t sign it. This means that the cancellation of the lease before it starts. Signatures indicate the parties’ acceptance of the room rental/lease agreement’s provisions. It also signifies the finality and enforceability of the agreement, as well.
While renting a room may sound like a good idea of putting extra cash in your pocket, such is not without its risks. Renting a room to a total stranger is unhealthy for your business. Thus, it’s always better to protect yourself and property from those. One of the ways of doing it is by conducting a background check beforehand. And to add another layer of protection, you must write and execute a room rental/lease agreement.