Review &Feedback on Househack/ Rent by the Room Lease Agreement

Jarreau Jackson · 2022-12-29T20:15:31-08:00

Hello BP Community! Strange request - I finished drafting a Lease Agreement (See Attached below) to rent out vacant rooms in my house and seek input on it. I'd appreciate feedback and questions for clarification. There are some nuances that I should mention: 1. I utilized 2-3 template agreements to individualize and curate this one for my needs 2. I was encouraged to use "Member" (vs. Tenant) and "Subscription" (vs. Rent) from a resource who shared a rent by the room agreement used in CA. 3. Property is a 4bd x 2ba SFH in Atlanta, GA (my primary) 4. This is my first house hack and I will be a first-time landlord 5. House has no furniture and I am seeking month-month (MTR) tenants Questions: - What should I include that I have not? - What should I remove to better set me up for success? - Are there negative implications of using Tenant and Rent vs. Member and Subscription? Or am I setting myself up well the way I have it? - Is my strategy for handling utilities the best option? Thanks for any input! Once it is buttoned up I'd be more than happy to share it with others. I am also open to anyone sharing an agreement they currently have for the same purpose! Thank you, Jarreau

John Warren

Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes

3y

@Jarreau Jackson I feel like this kind of document would be better run by an attorney than by the forum. The main issues with these types of agreements comes in worst case scenarios. Let's say you have to go to court to evict a roommate and it takes a few months to get rid of the person. These are the types of scenarios where you are likely to hire an attorney, so why not have an attorney review this before you dive in?

2 Reply

Jarreau Jackson

OP

Rental Property Investor · Atlanta, GA · Member since 2021 · 28 posts · 13 votes

3y

@John Warren you are absolutely right and I agree. I was on the fence on getting an attorney’s review and decided to start with the forums to see if there is low hanging fruit pertaining to the strategy.

Thanks for the input - getting the push and validation to go forward with the attorney review is very helpful advice and a more effective use of my time.

Much appreciated!

0 Reply

Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

3y

@Jarreau Jackson don't have time to read what you posted, but a few thoughts:'

1) You're unlikely to find an attorney that is familiar with roommate leases, as they are uncommon. So, they may only be able to make sure your lease is legal and has mandatory clauses.

2) Think WHAT CAN GO WRONG! As @John Warren mentioned about worst case scenarios. Then include how to cover in your lease. IDEAS: abuse of common areas, theft of personal & common possessions, violent behavior, assaoult of another roommate, general friction over kitchen, bathroom, laundry, storage, parking, etc.

You may want to create a new post: "What issues have landlords had with rent-by-room tenants?"

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1 Reply

Jarreau Jackson

OP

Rental Property Investor · Atlanta, GA · Member since 2021 · 28 posts · 13 votes

3y

Quote from @Drew Sygit:

@Jarreau Jackson don't have time to read what you posted, but a few thoughts:'

1) You're unlikely to find an attorney that is familiar with roommate leases, as they are uncommon. So, they may only be able to make sure your lease is legal and has mandatory clauses.

2) Think WHAT CAN GO WRONG! As @John Warren mentioned about worst case scenarios. Then include how to cover in your lease. IDEAS: abuse of common areas, theft of personal & common possessions, violent behavior, assaoult of another roommate, general friction over kitchen, bathroom, laundry, storage, parking, etc.

You may want to create a new post: "What issues have landlords had with rent-by-room tenants?"

@Drew Sygit much appreciated! From the feedback received, my next steps are to research past issues and pressure test the lease. Thanks for dropping in!

0 Reply

Craig Ians

Member since 2022 · 1 post · 1 vote

3y

Hi Jarreau,

If you do go for a real estate lawyer to look over your contract, there are a few to choose from here: California real estate attorneys directory

Good luck

Ian

1 Reply

Wendy S.

Ellenwood, GA · Member since 2016 · 267 posts · 70 votes

3y

@Jarreau Jackson

Welcome to the per room model. I did go through your template and while it has some basics there are quite a bit you've missed as well. I am no attorney and urge you to seek out one to cya. Also, get a copy of the Georgia Landlord Tenant Handbook.

With that said, I too do per room rental but just a few quick points to note.

With mtm Georgia requires 60 days notice by the Landlord whereas the tenant provides 30. Do you really want to do periodic tenancy?

Subscription vs rent , not familiar with this as they are renting a place. However, a lease is usually considered at minimum 1 year.

Find a way to see what the maximum utilities may run, factoring in different seasons etc, your internet and charge 1 flat fee for rent.

Early termination clauses, your late fee might need revision.

Don't remember seeing anything about overnight Guests, parking etc.

I am at 7 pages and still need to tweak a bit as I had a Tenant wanting to do a final walkthrough after 9 pm when I had gone to bed even though I saw Tenant earlier and didn't mention moving out same night with 1 full day left ahead to moving out.

Take your time and get it right, might need to pay a few bucks but it will be worth it.

0 Reply

Jarreau Jackson

OP

Rental Property Investor · Atlanta, GA · Member since 2021 · 28 posts · 13 votes

3y

Quote from @Wendy S.: