What is a Rental Agreement?
A Rental Agreement, or Rental Tenancy Agreement (more commonly referred to as a tenancy agreement), is an enforceable contract between a Landlord and a Tenant for the exclusive use and possession of a property, whereby the Landlord receives consideration from the Tenant in exchange for that right.
A Rental Agreement may be verbal or written. However, all Rental Agreements for a term longer than a month must be in writing in the Province of British Columbia. A Rental Agreement does not have to be for a specific term – it can be month-to-month, or for any length of time. Rental Agreements can be made in writing or verbal, but again, all Rental Agreements for a term longer than a month must be in writing in the Province of British Columbia.
In a tenancy agreement where a room in a private home is being rented, the Landlord and Tenant are both sharing the home and common areas (such as a living room or kitchen) with other individuals/roommates . In the case of a room rental in a shared home, there is no landlord-tenant relationship created (a person living in the home is not considered a tenant under the RTA). Instead, the relationship between the Landlord and the Tenant is that of a licensor and licensee. This type of arrangement is often referred to as a room rental in a private home, or a room rental agreement. Room rental agreements often cannot be used to assert ownership interests in the client’s personal things (such as a television, clothing, or music), nor may the landlord respond to the agreement by asserting the landlord’s rights of possession over said things. The landlord should also not be permitted to enter the premises rented by the tenant without due cause or with prior consent from the tenant.
Key Components of Room Rental Agreement
Regardless of the rental situation, the details of your agreement should always be explicitly stated and agreed upon by both parties. This is especially important when renting a room in a private home. Clarity and safety are paramount. For some, your home or apartment is a sanctuary, and it is also a business for you and liability for the guest. Having clear terms helps avoid conflicts and possible legal action down the road. So what should be included in your rental agreement? Here are the basics: This should include a written specific description of the property to be rented, including a description of any common areas provided to the tenant, such as a bathroom, entrance, kitchen, or laundry room, and whether or not any amenities are provided, and any house rules. This should include desired dates of occupancy, with an option to extend if both parties agree. Description of security deposit in detail, including circumstances under which the money may be withheld, such as excessive damage of property be it furniture or appliances, or unpaid rent, as well as the exact coordination of when and how the security deposit will be returned. Specify what bills are included with the rent, such as heat, electricity, cable, and internet in addition to what the rent is. It is also important to include when rent is due (the first of the month, immediately upon occupancy, or at the end of a month) and how payment will be made (in person, by mail, or electronically via PayPal, etc.). When there is damage to the property, or when cleaning is necessary to get the space back to its original state, these fees describe the services performed and the charges associated with them. Make sure to incorporate any house rules that constitute a healthy living environment, such as no pets, smoking, loud music, use of common spaces, and so forth. The House Rules are different from the Tenancy Rules; they are more personal and cover everything from shoe wearing to regular versus deep-cleaning of areas or items. This covers that you retain the right to enter the space at any time (or in emergencies) and that you have the right to immediately evict any tenant if they violate a rule of agreement or are dishonest about their background or history. This information is critical because it covers the tenant if they were to cause damages or break the law in your home.
Room Rental Agreement vs. Whole Property Lease
The primary difference between a room rent and a lease to use all or part of a property is that you do not have the rights of a tenant under the Landlord Tenant Act. An agreement to rent a room in a home in which the landlord and family reside with you would fall under the Rooming House Act.
If you live in the private home of the owner, you are entitled to only 5 days’ notice of termination, even if your rent is more than $100 per month. A tenant with a formal lease or tenancy agreement would have to move out with 60 days’ notice, at a minimum. Failure to comply with the notice requirements will likely result in a claim for double rent plus moving costs.
You are not entitled to any notice to enter or notice of a change in entering clause or other rules. A tenant who rents a room in a boarding or rooming house is entitled to 24 hours’ notice of entry. A tenant in a boarding or rooming house is entitled to notice of rules and how to contact the landlord if the rules are broken.
A room rental is usually for $750 or less per month for single men or women, or for less than $1,500 per month for a family. It will be for a room in a residential dwelling in which the landlord has a place to sleep or reside. A tenant of all or part of a rental unit may be a boarder or lodger. Boarders or lodgers may not be entitled to the right to have a guest for more than 3 days, but tenants are. A boarder or lodger may not be able to renew their agreement. Tenants can renew their agreements. A boarder may not be able to stay in the premises during the day, but tenants have the right not to be evicted from the rental unit except for lawful reason.
Some taxes are applicable to room rentals. You may have to pay provincial taxes called the Provincial Sales Tax (if the room rent is $10 or more per day or $300 or more per month). You may also have to pay Goods and Services Tax. The requirements are the same as those for a lease. Tenants pay taxes too.
The Board of Residential Tenancies has no role in rooming houses or boarding houses or room rentals.
Benefits of Renting a Room in Private Residence
The first question you need to ask yourself is why you want to rent a room in a private home rather than seeking out an apartment or even a home. The most common misconception is that renting a room is equivalent to renting a space in a college dormitory with separate entrance to the kitchen, tv and bathroom. In fact, renting a room in a private home is an opportunity to live in a more comfortable and less sterile surrounding than spends hours commuting far from town. Adopting a roommate relationship is an added bonus. With sharing comes added obligations and expectations, but typically figures to be an arrangement that comes close to splitting the cost in half. Sharing utilities usually means less wear on your pocket book. Rent for the room is lower than any apartment or other house you can rent. This is partially because renting only one bedroom makes for a smaller living area, a smaller kitchen and a smaller bathroom. Many units listed as having several bedrooms charge the same thing for the entire home regardless of the number of bedrooms, making for an inflation of price due to the sheer amount of space available in the unit. Also, the necessity of paying utilities has already been figured into the rent for you. The only things you are directly responsible for are your personal effects and food. Taking care of maintenance is covered for you, except for minor tasks. You need only bother with cleaning up after yourself and keeping your bedroom neat and tidy. A few rooms offer cleaning services for the bathrooms or other rooms in your home. As such, there is less responsibility with boarding a room than a standard rental. Finally, you may even have access to amenities not available in a typical rental unit. For instance, you can plan on laundry facilities, outdoor space such as a pool and maybe even a hot tub.
Common Terms for Rental of Room Within Private Residence
Security Deposit: Many rental agreements will include a provision regarding the security deposit that requires that the tenant pay a specific amount within a specified period of time, usually prior to the signing of the lease. The lease may include a clause that the landlord may retain part or all of the deposit if the tenant fails to fulfill all the obligations of the lease.
Maintenance and Repairs: In nearly all cases, the tenant and landlord will be required to abide by the residential tenancies act where it applies. This means that landlords and tenants are responsible for maintaining their respective obligations under the Act and that any provisions that are contrary to the Act are inoperable. These provisions typically cover the care of the property, the obligation of the landlord to keep vacant the common areas of the land, and may address specific issues such as pest control. Where the parties agree to a distinct set of rules beyond the Act , there can be hefty damages that are claimed for the breach of the tenancy.
Use of Common Areas: We have already discussed the obligations of landlords to properly maintain the common areas. There is often a clause in the agreement that states the tenant must conform to any restrictions in these common areas. Restrictions may include having furniture in common use areas or rules regarding odors from cooking. Most rental agreements require that the tenant be mindful of noise restrictions.
Dispute Resolution: Many rentals contain clauses addressing the process that will be followed if there is a conflict between the parties, or if someone fails to fulfill their obligations under the agreement. Tenants should be aware that if there is a dispute and it is taken before the Landlord & Tenant Board, the landlord may try to make an application for eviction on the basis of a breach of the tenancy agreement. A tenant may want to negotiate the lease so that there is some sort of dispute resolution process that can be completed before going to the Landlord & Tenant Board. This may include requiring that the landlord and tenant first attend mediation to address the dispute.
Considerations and Advice for Private Landlords
When a person decides to rent out a room in their private home, a room rental agreement becomes necessary. Any homeowner who decides that charging someone for living space is a good idea should have a room rental agreement drafted and signed as soon as the deal is struck with the tenant – even if no money is changing hands. Room rental agreements are of course not limited to non-monetary transactions, and many homeowners rent for a fee. There are a few things to keep in mind while drafting and executing a room rental agreement in order to avoid potentially costly legal issues down the road.
Keeping things short and sweet, here are some things you need to legally protect the landlord and the tenant: Finally, it’s important to keep in mind that all room rental agreements are subject to local ordinances and regulations. Like most matters involving landlord-tenant issues, things can get complicated very quickly. This is especially true if you choose to rent your room to someone in Texas without consulting an attorney.
If There Are Issues
When disputes arise between landlords and tenants in a rental arrangement for a room within an owner-occupied private home, several legal avenues exist to bring such disputes to a resolution. Where the dispute over occupation and use of the property is one that may place the tenant and/or the owner in a dangerous situation, police involvement may be a remedy of first resort in order to preserve the safety of the parties. Where the parties have signed an agreement for the exchange of rental consideration in exchange for the tenant’s occupancy of the property, any fraudulent or improper misrepresentation which induced the tenant to enter into such an agreement would be grounds for the tenant to obtain a remedy from Provincial Court, either through an order for damages and/or a request that the court deem the agreement no longer valid and terminate such agreement upon the terms the court may decide. Where the tenant’s occupation is not secured by the signing of an agreement, the tenant would still have rights as a person properly occupying a rental unit under the Residential Tenancies Act. Section 87(2) under the Residential Tenancies Act provides that the residential tenancy rights of a tenant "cannot be devalued, subordinated or altered by way of agreement to a standard that is less than provided for under this [Act]." The Owner is without recourse in such a situation where the tenant is a tenant "at will" and has not entered into a formal written agreement with respect to rental of the room, however he/she may issue a notice of objection to the tenant where it is believed that there are threats of violence or harassment or that the tenant is living in filthy conditions that endanger the health or safety of the tenant or others. A notice under the Property Rules, R 240/2003 form 1 (notice to cease or area of dispute) may be presented to the tenant who has the right to respond to such notice within a specified time. It is at this point that the Landlord could consider contacting the police to seek assistance where it is believed that the tenant’s safety may be compromised. Where the parties do not find common ground on issues of disagreement, they may wish to avoid court proceedings and use the services of a mediator to attempt to resolve the matter. Other preventative methods may include the inclusion of a mediation clause in the written agreement to assist in resolving disputes should they arise. In addition, it is a recommended practice for each party to keep detailed notes of issues of contention with respect to conduct.
How to Write a Rental Agreement for Room
Room rental agreements for the rental of a room in a house should be in writing. A room rental document can be informal. However, to be a binding legal document between the landlord and tenant it must be drafted with some formalities. A room rental agreement must be drafted to meet your own needs and particular type of circumstances. The agreement is likely to contain various terms and pre-conditions before the tenancy or occupation of the subject room in the house is given. The parties to the room rental agreement must look at such issues as: cost of the room, duration of the tenancy, is it periodic or fixed term, how does one terminate the tenancy, what is the bond, you must take into account the Residential Tenancies Act and other relevant laws that may apply. It would be unwise to issue a template room rental agreement without reading the document fully and ensuring that the mandatory requirements of the Residential Tenancies Act and other relevant legislation have been complied with. You should also consider consulting a legal professional or advisor for advice on any issues and if you require a room rental agreement to be drafted. It must be remembered that the general rule is that a room rental agreement is no longer a license it is now a lease. This means that you are permitted to exclude other persons from occupying the subject room. If there are any breach of the terms of the room rental agreement the landlord has the right to terminate the room rental agreement and/or recover the bond. If the room is no longer required , the tenant can terminate the room rental agreement in accordance with the provisions contained within the room rental agreement. It is always a good idea to keep the room rental agreement somewhere where it can be easily found and access by the landlord and tenant. At the end of the room rental agreement the room rental may be extended, renewed or a new room rental agreement may be required. It is a good idea that if you do extend or renew the room rental agreement, that both parties sign the extension or renewals agreement immediately after the expiration date. All parties who are parties to the room rental agreement should keep a copy of the agreement.
This Agreement is made between (enter name of landlord) whose address is (enter address of landlord) (hereinafter referred to as "Landlord") and (enter name of tenant) whose address is (enter address of tenant) (hereinafter referred to as "Tenant "). By this agreement the Landlord agrees to rent to the tenant who enters a room located at (enter full address of premises where the room to be rented is located) (enter suburb / town ). The parties agree to the following terms being expessed herein as part of this Agreement (provide terms that are relevant to the room rental agreement).