Room Rental Contracts

A room rental agreement is a written, legal contract between a potential landlord and a potential tenant. In New South Wales there’s a ‘standard’ room rental agreement that can be downloaded and used, or you have the option of writing one up yourself and getting both parties to sign. It’s up to you.
Why is a written room rental agreement important?
The main reason is so that you can assume your preferred level of control as a landlord (whether it be to be more or less involved with managing your property). A room rental agreement also helps to protect you legally in the event that a dispute arises.
What should be included in a room rental agreement to be considered legally binding?
To be ‘legally binding’, your room rental agreement should spell out the following:
In addition, you should also include , where relevant:
Note that if you’re renting a room out to more than 1 person, you can still use the ‘standard’ room rental agreement. You just need to fill it out appropriately.
Finally, some other documents you may want (but are not required) to make a room rental agreement legally binding are:
Although a room rental agreement doesn’t have to be formally registered to be legally binding, it’s a good idea to register it with the Tenancy Tribunal if you foresee any issues occurring in the relationship (such as one of the tenants not paying their share of rent or bond, leaving the property very dirty, or causing damage to your property).
You will be given an ‘acknowledgement of registration’ from the Tenancy Tribunal once your room rental agreement has been registered, and you may want to keep this for your records.

Rights of Tenants Renting a Room

Your rights when renting a room can be a tricky matter. This is an area of law that often flies under the radar, especially for room share tenants. While many of the typical contractual terms that apply to lease agreements will likely accompany a room rental agreement, tenants should be aware of their rights in the context of room rentals.
For posterity, the following are some examples of rights that tenants have:
Privacy
Your landlord must provide you with 24 hours notice if they want to enter your rented room. Even if they do not provide you with 24 hours notice, your privacy rights are still considered to be highly infringed upon if your landlord enters the room. However, certain things relieve landlords of their responsibility to notify tenants, including when there is an emergency.
Quiet Enjoyment
This may seem like an odd concept, however it is a very applicable right for a tenant when renting a room. Any noise that occurs inside the premises that significantly interferes with your comfort may be considered a major violation of your right of quiet enjoyment, so much so that you may even be able to terminate the tenancy early. If you are concerned, it is always worth consulting with a lawyer about your options.
Right of Nondiscrimination
It goes without saying that discrimination on the basis of sex, gender, ethnicity and similar factors is prohibited, however in addition to this, landlords also cannot discriminate based on disability, language and more. Any kind of discrimination is illegal!
Right to Request Repairs
Under the Residential Tenancies Act, a landlord cannot simply ignore a request for repairs that is heartfelt by their tenant. The cost of the repair must be borne by the landlord if they are significant and warranted. In some cases, the landlord is entitled to ask the tenant to pay for the repair, however it becomes a violation of your rights as a tenant when a landlord fails to repair something, even after a reasonable amount of time has passed, if the issue is affecting you in any way.

Responsibilities of the Landlord to Room Renters

Landlords who rent using a room-only agreement, or who have lodgers, must comply with the specific obligations imposed upon them by the ARLA Code of Practice. In addition to the general obligations imposed by law, they are obliged to provide, and maintain, the furniture provided to the tenant in compliance with the Furniture and Furnishings (Fire Safety and Furniture) Regulations 1988. All furnishings must have required labels attached, showing that they have been tested for safety purposes. No substitute pieces of furniture can be provided; if they need replacing, the original piece must be replaced.
There are basic safety measures that landlords are lawfully obliged to take care of when they rent out part of their property, either to tenants or lodgers. These include:
Landlords who seek to rent out a room in their property should pay particular attention to the safety measures, as many house fires each year are started by electrical faults or faulty wirings, and many of these properties are held to ransoms by criminals who are able to gain access through inadequate door locking mechanisms. It is even more important to have a thorough inventory prior to renting out a room – if items go missing, or are damaged, this will provide some peace of mind that they were present from the outset.

Laws Affecting Room Rentals and Landlords

The rental market is not immune from the complexities of state and federal laws. There are a variety of legal restrictions and zoning laws that may affect your decision to rent out a room in your residence, as well as your overall ability to do so. Two of the most prolific issues that arise involve licensing and tenant discrimination.
Licensing
While many people may think that licensing requirements pertain only to corporate real estate investments, there are true home-sharing licensing requirements that apply to anyone who rents out a room. A place that is not your primary residence and that you rent out for higher turnover rates (like a nightly or weekly basis) is considered a hotel by the state, and therefore subject to these rules.
Even if you’re only renting out a room in your primary residence, if you do not live there for at least six months per year, you could still be considered a hotelier under the state’s definition. Hotel owners are required to pay an annual license fee, and must comply with room requirements established by the state, such as the number of persons permitted in the rooms, the ratio of toilet facilities, and the number of bathing facilities. Depending on the local government, you may be unable to legally rent out a room in your house unless you are complying with these laws.
Zoning Laws
There could also be zoning restrictions that stop you from taking on a tenant in your home. Some communities actually ban the renting of rooms in homes. For situations in which you are close to the local limit or zoning rule, you could be forced to hire a lawyer to help you determine if you are within the requirements and other options you may have available to you.
As you make decisions about whether or not you’re going to take someone into your home as a tenant, be sure to evaluate the legal restrictions and zoning laws that may be reached. Though it could be tempting to overlook such issues to bring in income, keeping all of your business above board is better for your own protection.

Security Deposits and Renting a Room: A Guide for Landlords

One popular method of renting separate rooms in a home, such as having other tenants who rent a room in your house, is to require a security deposit. This is generally a good way to ensure that you get your money back at the end of the lease – even if it isn’t returned completely to you, it at least gives you some recourse. But the downside to this is that if you have decided to charge a security deposit, you are subject to the security deposit laws in Illinois.
How much can I charge? When you rent out a room in your home in Illinois, you are legally allowed to charge up to one month’s rent as a security deposit. The key here is that you are only allowed to charge up to one month’s rent. If you provide any appliances such as a microwave or refrigerator for the tenant’s use, you are legally allowed to charge an additional $100 for the use of those appliances.
What do I have to do with the security deposit? After receiving the security deposit , there are several rules that you must follow: What happens if I don’t follow the security deposit laws? If you do not follow the laws regarding charging and returning security deposits, you could end up losing that money. If a landlord is found to have violated the security deposit laws, a tenant can sue the landlord for an amount equal to the amount of the deposit, plus 2x the value of the deposit. For example, if you charged a security deposit of $400 and returned $0 to the tenant when they moved out, then the tenant could sue you for $1200 ($400 + $800).
What if I have no intention of keeping the full deposit? If you don’t mean to keep the full security deposit at the end of the lease, the best option is to waive the security deposit up-front and not charge any security deposit at all (remember, they don’t have to pay their rent until the 5th of the month) or charge only a small or nominal amount to meet the requirements of the laws. Otherwise, the tenant will receive the entire amount back, since you cannot deduct the $400 for repairs such as touching up paint or fixing door handles.

Evicting a Room Tenant

Should a dispute arise between a landlord and "shared room" tenant, all hope is not lost. Renting out rooms often involves close relationships, but these relationships can become strained, and you may find yourself wanting to terminate their stay. However, unless you are the owner of a multi-unit apartment, you likely have little protection under rent control laws, and your remedies will be limited to what is available at common law (i.e., not specific to tenancy disputes). During the uncertain times of COVID-19, improperly evicting a tenant could expose you to liability. For example, if your tenant has underlying health conditions that make them vulnerable to COVID-19, they could argue that such an eviction would essentially push them out to their death.
Existing Lease You can evict them if they are in breach of their lease, e.g. failure to pay rent. You’ll need to document how they’ve breached the lease. The time you need to give them to vacate the premises depends on the breach: Unlawful acts such as dealing drugs or other illegal activity such as damage to the units, or unlawful acts in the building: 24 hours notice to vacate. Failing to pay rent and other breaches such as complaints from neighbors or complaining about safety issues: 5 days notice to vacate.
No existing lease If there are no written terms specifying otherwise, and no suggestion they intended to stay beyond the minimum term, you cannot make them stay. You are required to give them reasonable notice to vacate. What is "reasonable" depends on the relationship history. Generally, it requires that you treat them as you would expect to be treated should you be in their position. If they’ve only been there a very short time, a few days might suffice, but if they’re leaving an apartment to come live with you rent free, then you probably shouldn’t just kick them out after one night. Instead, consider talking to them directly about the issues you are having, and if they refuse to leave, telling them that they have a week to find their own place might be fair.
Illegal Eviction Toolkit Here’s how to protect yourself and to allow for a smooth transition: Give your tenant notice, in writing, telling them exactly why they are being evicted: To be safe, file this notice with the Superior Court of California. You can also ask the court to help you enforce the letter. If you have any issues collecting from a tenant who is refusing to leave, then the best course of action is to take them to small claims court.

Resolving Issues Between Landlords and Room Renters

Given the intimate nature of room rentals, disputes between the landlord and renter can often be highly charged and emotional. Both parties may dig their nails into each side; however, luckily, the law is on their side. To settle disagreements, landlords and room renters have several options.
Depending on the nature of the dispute, most conflict between the two parties can be resolved through either mediation, arbitration, or the small claims court process.
Mediation: In mediation, the mediator plays an active role in guiding the conversation between the landlord and the renter to reach a common resolution. This third-party negotiator is instrumental in teaching both the landlord and tenant about effective communication, mediation qualifications, and conflict resolution .
Arbitration: This alternative dispute resolution method resembles a formal court hearing—both parties can present relevant evidence as a neutral third-party listens to determine a resolution. While arbitration can be binding, it is often a less expensive option for both parties than going to a court hearing.
Small Claims Court Process: This legal process is used as a last resort. Most states have strict restrictions on how cases can be presented in court, with time limits on how long attorneys have to prepare, and no lawyers are allowed in small claims court. A judge with experience hearing such claims oversees the court process. In fact, many judges in small claims court have a reputation for being straightforward and direct.