“Room Rental Agreement Template for Property Managers”

Wondering what to include in a room rental agreement template?

Well, a room rental agreement is needed if you’re renting out a room to someone else. This is a legally binding agreement and its primary purpose is to promote household harmony.

You can just look for a standard room rental agreement online or make your own. However, you should make sure that it covers the basic terms. 

So how do you know what basic terms should be included? That’s what I’m going to talk about in this blog about room rental agreement template for property managers.

Parts of a Room Rental Agreement Template

A property manager shouldn’t allow just anyone to rent a room without creating a room rental agreement template. Like in every rental agreement, a contract should be secured to ensure that all parties’ rights are protected.

Whether you’re going to use an online room rental agreement or make your own, you should always include the basics that I’m going to talk about. But before that, I’d like to first emphasize the importance of having a room rental agreement.

The Importance of a Room Rental Agreement

A room rental agreement is a formal contract between the tenant and the property manager. Simple, right?

You might think, based on this, that you can just use a standard rental agreement. But tell you what — room renting is different from apartment or house renting.

Room renting involves sharing facilities in the property with other tenants, which is entirely different. That’s why you need to have a room rental agreement template.

A room rental agreement template serves as a binding document that intends to promote order in the property. It does so by clarifying expectations and responsibilities of the tenant such as:

  • House rules,
  • Rental fees,
  • Penalties, and 
  • Other arrangements.

Aside from that, it serves as a supporting document in case lawsuits and other conflicts arise. Having a room rental agreement greatly expedites time and reduces confusion. 

To know more about the importance of the rental agreement, read our post about the advantages of having a room rental agreement. Otherwise, let’s move on to how to make a room rental agreement template.

Room Rental Agreement Template Format

You may find a room rental agreement template online that is detailed and complex. If that’s what keeps you from having a room rental agreement, then don’t worry.

You see, you can try to make your own or look for simpler ones online. You just have to know the essential details to include in your room rental agreement template.

Let’s talk about them here.

Basic Information of Both Parties

Every rental agreement must include information of both the property manager and the tenant. This includes the following:

  • Names of both parties,
  • Address of the room to be rented out, and
  • Contact information.

The room rental agreement must also include the signature of both parties. As a property manager, make sure to keep copies of the signed form.

Length of Rental Agreement

The room rental agreement template should specify the length of the tenancy. Room rental can be divided into short-term and long-term.

If the tenancy is short-term, you can easily get rid of a problem tenant without the need to undergo a costly eviction process. You can just change the terms of the agreement on a monthly basis as long as you notify your tenant. 

However, a long-term tenancy saves you money as well by ensuring that you won’t experience having unrented properties for a long time. Lower vacancy rates means better profits, after all.

Whatever type of tenancy it is, always specify the exact dates of the tenancy’s duration. That sort of specificity is important in a binding room rental agreement template.

Financial Matters and Other Fees

The terms of rent should be included in your room rental agreement template

Specify clearly the basis of the rent in your room rental agreement template. Your agreement should indicate the amount of rent, and the timing and mode of payment.

Terms on security deposits should also be mentioned. It should include answers to questions such as how much the security deposit is or how is it going to be used and returned.

In addition, utility fees can also be included. If you want to include those fees in the rent, then it should be clearly stated. 

If not, you have to specify that the tenant will pay a percentage of utilities. Examples include these:

  • Gas,
  • Internet,
  • Garbage,
  • Electricity, and
  • Water.

Key Points to Include in Your Room Rental Agreement 

Knowing the basic things to include in your room rental agreement template avoids future misunderstandings between you and your tenant. These basic things will address issues and potential problems before they occur. 

But aside from the basic things, there are also certain key points to include in your agreement, as well as inescapable considerations to keep in mind.

Know Tenant Privacy Rights

As a property manager, there will come a time that you’ll have to enter a tenant’s room for various reasons. These reasons include the following:

  • Inspecting for damage,
  • Repairing or fixing faulty electricity or water line,
  • Checking if the tenant is not doing anything illegal,
  • Ensuring security of the room, and
  • Checking if everything is in order.

Your tenant is entitled to privacy once he/she rents the space. So you should inform the tenant beforehand if there’s a need to check the room by providing a notice. 

Include these terms in the room rental agreement template to avoid any issues.

Include Specific House Rules

Room rental involves sharing the entire house with the other tenants. That can be a tricky matter if you’re not careful with your room rental agreement template.

As a property manager, you’re responsible for maintaining harmony in the household. You can do that by making house rules and including them in the agreement.

House rules should be observed by all tenants during their stay. Restrictions on illegal actions such as smoking and alcohol/drug use should be clearly specified. 

You may also want to include a term on whether you allow pets in the room or not.

Indicate Responsibilities of Both Parties

The agreement should indicate the responsibilities of both parties. As for the tenants, you may want to specify things such as these:

  • A tenant should maintain cleanliness in the room.
  • The tenant should immediately inform you of any damages.
  • Any additions or modifications to the room must be relayed to you.

Insurance Coverage for Claims

A property manager should make sure that the property is protected from any damage. With that, you need to obtain an insurance policy to cover claims. 

And for that to be possible, you have to include that in the room rental agreement template as well.

Final Thoughts on a Room Rental Agreement Template

Room rental involves sharing facilities with other tenants. 

As a property manager, you have to make sure that you use a room rental agreement template. This’ll help in maintaining household harmony.

In using a room rental agreement template, make sure to include the basics such as information of both parties and length of rental agreement. Of course, you shouldn’t miss including terms on rent and other fees either.

In addition to the basics, certain key points should also be specified. You must state the possible reasons why you’ll enter a tenant’s room to avoid any issues with privacy rights, for example. 

Aside from that, consider including house rules and tenant’s responsibilities as well.

So that’s it! Now that you know the basic things and key points to include in a room rental agreement template, you should be able to make one. 

If you have some questions about making a room rental agreement template, though, don’t hesitate to comment down below. I’ll be happy to help you with your own room rental agreement template.




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Article: Room Rental Agreement Template for Property Managers

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