Roommate Lease Agreement?

5 Replies

Hey guys! I’ve been following BP for a couple of years now and have finally taken action on an awesome home here in the Houston - Spring Branch East area.

My plan is to live in it for a year with a roommate then Lease the whole house out.

My question is...

Have you ever utilized a lease agreement for a roommate/house hack situation?

And if so, did you make any special provisions or additions since they were your roommate in as well as your tenant?

I want to make sure I keep things pretty official and straight forward that rent is due, for X amount, on this date, etc.

I appreciate any and all feedback!

Hey Austin, I'm in this same situation now. I'm living in one room and looking to rent out 2 rooms. I'm wondering the best way to list 2 rooms (FB marketplace, craigslist) and what documents should I provide up front to roommates (house rules, roommate agreement)

Let me know your thoughts on this.

@Austin Nicoson I started in REI with "house hacking" (didn't know it was a thing at the time). I absolutely recommend utilizing a lease agreement as it helped me immensely when dealing with issues. Even though my "tenants" were actually friends of mine, we decided that any disputes that came up we would reference the terms of the lease agreement and that is just what we did on several occasions. I used the ABOR form that a real estate agent friend of mine was kind enough to generate for us but anything is better than nothing. Wishing you all the best in your investing!

My suggestion is to get the lease in place.  Think of it kind of like an operating agreement between business partners.  The lease is something to fall back on, even though you may be friends and you've initiated the hand shake agreement.  Think of it as protection on both of your parts.  There are many locations to get a good sample lease template that you can use.  If there are any rules you want to add, you still can and just create addenda to the lease.  If the house is older than 1976, make sure you have your Lead Based Paint disclosure, and then add any rules you need to setup.  It's also going to be important to set that end date as well, especially if you plan on leasing out the whole thing, sell it, or otherwise.  If you have nothing setup, just think how hard it will be to get them out when you need them out and they aren't cooperating.  Being a roommate with anyone is hard and it may not always be rosy in the end, right!?