Rent by the room Leases/ rules

Portland, Maine
House Hacking
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Rent by the room Leases/ rules

Lynn JoachimPro Member
Member since 2024 · 6 posts · 1 vote

Hello! 

I'm Lynn. My husband and I are health providers and rookie real estate investors. Prior to our wedding this year, we each purchased a multi-family (2 units each, 4 doors total between the 2 of us). This helped us benefit from the first time homebuyer programs that were available to us. I

work 1.5 hours away from home and house hack one of the properties while he house hacks the one in Portland. We plan on doing this for a year (3 months in so far). The hope is for me to move to Portland full-time next year and purchase a thirds multi-family together to further grow our portfolio. 

My question is regarding renting by the room. We want to do furnished room rentals for one of the units in Portland. 

      -  Are there any lease examples that anyone could share with us?  

      - What are some key items that I should include in the lease?

     - PadSplit is currently not active in Maine, what other websites can we use to list the rooms?

   - Any other advise/ things that we should keep in mind? 

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1mo

What are you expecting regarding tenant quality?

Padsplit claims they get great tenants that are "young professionals", but several have posted here on BP that it's not always the case.

Depends on your job & housing markets, the property location and how nice it is.

Regarding a lease, you can use a pretty standard lease.
Any unique language will actually depend on the shared spaces of the property itself and what you plan to provide:
- Utilities?
- Shared bathrooms?
- Shared kitchen, fridge, etc.?
- Shared living room, TV, etc.?
- Shared laundry?
- Shared storage?
- Shared parking?

You'll want to create House Rules around:
- Cleaning up after yourself
- Respecting private access areas
- Shower time limits
- Leaving laundry in the machines, so others can't use
- Not boxing each other in when parking
- Etc.

Maybe get a lease from college shared housing and copy what applies.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1mo

    What are you expecting regarding tenant quality?

    Padsplit claims they get great tenants that are "young professionals", but several have posted here on BP that it's not always the case.

    Depends on your job & housing markets, the property location and how nice it is.

    Regarding a lease, you can use a pretty standard lease.
    Any unique language will actually depend on the shared spaces of the property itself and what you plan to provide:
    - Utilities?
    - Shared bathrooms?
    - Shared kitchen, fridge, etc.?
    - Shared living room, TV, etc.?
    - Shared laundry?
    - Shared storage?
    - Shared parking?

    You'll want to create House Rules around:
    - Cleaning up after yourself
    - Respecting private access areas
    - Shower time limits
    - Leaving laundry in the machines, so others can't use
    - Not boxing each other in when parking
    - Etc.

    Maybe get a lease from college shared housing and copy what applies.

    [email protected]248-209-6824
    Logical Property Management4.9459 Reviews
    WebsiteView Page
    4Reply
    • Lynn JoachimPro Member
      OP
      Member since 2024 · 6 posts · 1 vote
      1mo
      Quote from @Drew Sygit:

      What are you expecting regarding tenant quality?

      Padsplit claims they get great tenants that are "young professionals", but several have posted here on BP that it's not always the case.

      Depends on your job & housing markets, the property location and how nice it is.

      Regarding a lease, you can use a pretty standard lease.
      Any unique language will actually depend on the shared spaces of the property itself and what you plan to provide:
      - Utilities?
      - Shared bathrooms?
      - Shared kitchen, fridge, etc.?
      - Shared living room, TV, etc.?
      - Shared laundry?
      - Shared storage?
      - Shared parking?

      You'll want to create House Rules around:
      - Cleaning up after yourself
      - Respecting private access areas
      - Shower time limits
      - Leaving laundry in the machines, so others can't use
      - Not boxing each other in when parking
      - Etc.

      Maybe get a lease from college shared housing and copy what applies.

      Thank you so much for the response!
      For tenant quality- we are both young professionals who work long hours- so we are hoping to find other professionals as well. The property is within walking distance to a nearby major hospital- so hoping this will help us reach this working population. 

      For house rules, would they be outlined in the lease as well or as an addendum that people sign?

      I love the idea regarding college shared housing. Do you know where I could find an example?

      0Reply
  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    1mo

    You should also clearly identify each individual's private spaces. This will include their main BR, as well as specific storage spaces in common areas such as shared bathroom (toiletries/towels/etc.), shared kitchen (cabinet/shelf, refer shelf, etc), shared main living/rec space, laundry area (laundry soap/dryer sheets), and any other available storage closets/areas, PLUS their parking space. BR entry doors should be numbered/lettered, and each associated storage area should be similarly identified. Only the BR should have an actual lock (including a deadbolt) for their personal safety and protection of their valuable property. House rules should address the storage areas in shared spaces. 

    I recommend separate parking agreements if space is an issue. It should not reference the rental agreement for the living space, so you can terminate the parking agreement with minimal delay and make it more difficult for the tenant to remain, if you need them out. You also need to include specified "quiet hours", such as 10 PM - 8 AM daily.

    House rules need to spell out who is responsible, and when, for cleaning shared areas, emptying rubbish, and other common tasks. 

    1Reply
    • Lynn JoachimPro Member
      OP
      Member since 2024 · 6 posts · 1 vote
      1mo
      Quote from @Richard F.:

      You should also clearly identify each individual's private spaces. This will include their main BR, as well as specific storage spaces in common areas such as shared bathroom (toiletries/towels/etc.), shared kitchen (cabinet/shelf, refer shelf, etc), shared main living/rec space, laundry area (laundry soap/dryer sheets), and any other available storage closets/areas, PLUS their parking space. BR entry doors should be numbered/lettered, and each associated storage area should be similarly identified. Only the BR should have an actual lock (including a deadbolt) for their personal safety and protection of their valuable property. House rules should address the storage areas in shared spaces. 

      I recommend separate parking agreements if space is an issue. It should not reference the rental agreement for the living space, so you can terminate the parking agreement with minimal delay and make it more difficult for the tenant to remain, if you need them out. You also need to include specified "quiet hours", such as 10 PM - 8 AM daily.

      House rules need to spell out who is responsible, and when, for cleaning shared areas, emptying rubbish, and other common tasks. 


       Wow! Thank you that was so insightful. I never thought about placing locks on the bedroom doors- but it such a great idea that will likely bring tenants some peace of mind. 

      For cleaning of shared areas, would you recommend having a shared calendar with tenants? or simply have it in their lease that they would be responsible for cleaning shared areas every X weeks (ex: every second and fourth weekend or day of their choosing)?

      0Reply
    • Richard F.
      Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
      1mo
      Quote from @Lynn Joachim:
      Quote from @Richard F.:

      You should also clearly identify each individual's private spaces. This will include their main BR, as well as specific storage spaces in common areas such as shared bathroom (toiletries/towels/etc.), shared kitchen (cabinet/shelf, refer shelf, etc), shared main living/rec space, laundry area (laundry soap/dryer sheets), and any other available storage closets/areas, PLUS their parking space. BR entry doors should be numbered/lettered, and each associated storage area should be similarly identified. Only the BR should have an actual lock (including a deadbolt) for their personal safety and protection of their valuable property. House rules should address the storage areas in shared spaces. 

      I recommend separate parking agreements if space is an issue. It should not reference the rental agreement for the living space, so you can terminate the parking agreement with minimal delay and make it more difficult for the tenant to remain, if you need them out. You also need to include specified "quiet hours", such as 10 PM - 8 AM daily.

      House rules need to spell out who is responsible, and when, for cleaning shared areas, emptying rubbish, and other common tasks. 


       Wow! Thank you that was so insightful. I never thought about placing locks on the bedroom doors- but it such a great idea that will likely bring tenants some peace of mind. 

      For cleaning of shared areas, would you recommend having a shared calendar with tenants? or simply have it in their lease that they would be responsible for cleaning shared areas every X weeks (ex: every second and fourth weekend or day of their choosing)?


      This really depends on the type of tenants you will be able to attract and approve. Either way, you need to define "cleaning" for each space. "Professionals" covers a wide range...some will be working long hours and have difficulty making time for household chores, while others may be "neat freaks" that are happy to take it on. I would re-evaluate/revisit at least every six months, if not three, to make sure everyone is happy and the work is being done regularly. It also will depend on if you are renting to a mixed group or single sex. A shared calendar that you monitor might work very well, if everyone cooperates, and provides a certain amount of flexibility when needed.
      0Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    1mo

    I've been renting 3 houses doing the co-living thing for the last 5 years. I just wing it and don't really have too many rules. I tell them to do their dishes after they eat and try to keep the common areas clean. And keep noise levels down after 9pm. This seems to work and people tend to respect each other. And I do my leases for free with apartments.com. It's easy to do and the profits are about double for me vs renting it to a family. It's not for everyone, but they work for me. 

    2Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    1mo

    Lynn, one thing I’d get right before listing furnished rooms is the lease structure and house rules, because renting by the room creates more shared-space issues than a traditional whole-unit lease.

    I’d have a Maine landlord-tenant attorney review or provide the lease rather than relying on a generic online template. I’d want it to clearly cover the individual bedroom being rented, shared areas, utilities, internet, furnishings, parking, guests, cleaning expectations, quiet hours, smoking, pets, damage to common areas, security deposits, lease term, and what happens when one roommate leaves while the others remain.

    For marketing, I’d look at platforms geared toward furnished and medium-term housing, local Facebook housing groups, university or hospital housing boards, and relocation or traveling-professional networks. Since you’re both healthcare providers, you may also have a natural connection to people looking for furnished housing around hospitals and medical facilities.

    From the tax side, keep the personal-use and rental-use portions clearly separated. With a house hack, depreciation and expenses generally need to be allocated between the portion you live in and the portion being rented. Furnishings, utilities, repairs, and shared expenses also need good documentation.

    I'd also evaluate cost segregation on the rental portion once everything is placed in service, but only after determining whether the accelerated losses would actually be usable under your passive-loss situation. And I would not rush into additional LLCs just because you're adding room rentals. An LLC may help with liability or ownership, but it does not automatically create rental tax savings.

    Happy to connect!

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  • Ashley B.Business Member
    Specialist · Washington, DC · Member since 2026 · 35 posts · 19 votes
    1mo

    Hi Lynn, congrats on the portfolio.

    Can't speak to specific lease templates or Maine listing sites, but on the "key items to include" and "other things to keep in mind" side: rent-by-the-room is one of the highest-conflict rental structures there is, just by nature multiple unrelated tenants sharing common space means disputes are less "if" and more "when." A few things worth building into your lease and house rules from day one, before you have a full house:

    • Individual leases per room, not one joint lease. This keeps one tenant's issue (nonpayment, lease violation) from becoming everyone's problem, and makes it much easier to remove one person without affecting the others.
    • Explicit common-space rules in writing
    • cleaning schedule/responsibility, kitchen use, quiet hours, guest policy (how many, how long, overnight limits). Vague or verbal-only rules are where almost every roommate conflict starts.
    • A clear process for reporting issues between tenants who they come to, how disputes between roommates get handled, so it doesn't default to tenants trying to resolve it themselves (or one tenant just leaving a bad review instead).
    • Notice-to-vacate terms spelled out clearly how much notice is required on either side, and what happens with the room if someone leaves mid-term (do you re-list it? does rent get reallocated among remaining tenants, etc.).
    • A dispute resolution clause worth considering mediation or arbitration as the specified path instead of defaulting straight to court for lease disputes. It's faster, less expensive, and less disruptive to the other tenants living there than litigation would be, and having it spelled out in the lease upfront means everyone knows the process going in rather than figuring it out mid-conflict.
    • Move-in/move-out condition documentation per room, not just the unit as a whole, since damage disputes get messier with shared spaces.

    The lease terms matter, but honestly the bigger factor in how smoothly this goes is how clearly you set expectations before someone moves in, not what's buried in the lease language. Most room-rental conflicts come from things that were never actually agreed to in writing.

    Good luck with it sounds like you two are building this thoughtfully.

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  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    1mo

    Hey Lynn,

    For furnished room rentals, I'd make sure the lease clearly addresses the basics, including rent, security deposit, utilities, furnishings, maintenance responsibilities, house rules, guests, parking, common areas, and the terms for ending the tenancy. Since you're renting by the room, I'd be especially clear about shared spaces and expectations around noise, cleaning, and guests.

    I'd also make sure whatever lease template you use is specific to Maine and reviewed for local landlord-tenant requirements rather than relying on a generic form.

    For finding tenants, I'd look at the major rental platforms as well as local housing groups and your own professional network. With room rentals, good photos and a clear description of the living arrangement can make a big difference.

    You have a great setup already, and it sounds like you're being thoughtful about scaling. All the best! Feel free to reach out. I'm always happy to help in any way I can.

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