Have you decided to lease your rental unit to more than one tenant? In that case, you'll need to draw up a room rental agreement to specify the details of the arrangement. If you've never created this type of contract before, keep reading!
We'll provide all you need to know about room rental agreements in this post.
Room Rental Agreement
A Colorado room rental agreement is a legally binding document in which the original tenant and landlord agree to lease a room to a new tenant in exchange for monthly rent.
This document specifies the rent amount, security deposit requirements, rental period, and the terms and conditions of the arrangement, many of which also appear in the master lease.
The terms of the room lease agreement might also specify the responsibilities for cleaning and maintenance that each roommate will bear. Unless an alternative arrangement is defined in this lease agreement, the cost of a repairman's services shall be split equally if one needs to be summoned.
In Colorado, anyone considering leasing a room should be informed of any details that the initial tenant received along with the master lease when they first moved in. Before completing any paperwork, the original renter should confirm that the landlord has given permission for the lease of a room.
This type of agreement must be signed by all the relevant parties to be considered valid.
Why Use One?
A room rental agreement or roommate agreement (when the landlord plays no part in the arrangement) is a legal contract that aids two or more parties in making timely rent and utility payments. When someone is considering renting a home or a condo, but the rent is a little too much for them to pay on their own, they may want to take into account this agreement.
The cost of the apartment can be made more reasonable for both tenants, which is a fantastic solution. Moreover, the initial or primary tenant will be included in the master lease, but the agreement will still be enforceable.
When landlords notice that the original tenant is having trouble paying the rent, they may agree to allow this type of arrangement. Additionally, if a guest stays for long periods, the landlord may request that the person sign a roommate agreement.
Not Having One
The purpose of a room rental agreement is to safeguard a tenant's rights. When the original tenant decides to sublet all or a portion of the rental property to additional occupants, the agreement is drawn up.
Because this lease agreement details the conditions of renting a room, it can also establish clear boundaries between both tenants, which can prevent conflicts. You will have fewer problems when you come to an agreement that benefits all parties.
Another important thing to think about is eviction. If an issue arises and you need to evict a roommate, this can be considerably more difficult if there is no formal agreement in place. That's because there's no proof that the tenant was informed of their duties and responsibilities.
Although the terms "Colorado roommate agreement" and "room rental agreement" are frequently used indiscriminately, there is a critical difference between the two.
A Colorado roommate agreement is drawn up if the landlord is not involved in the arrangement. The terms of leasing a room are outlined in these agreements, and the initial tenant is ultimately responsible for the roommate. Moreover, a Colorado roommate agreement is only considered valid once the initial tenant and new roommate have signed the completed document.
On the other hand, a room rental agreement is made to outline the conditions of renting a room in which the initial tenant and the landlord are equally involved in the lease. It is important to remember that for this type of agreement to be valid, the document must be signed by the landlord.
How to Write One
When building this type of lease agreement, it is important to include certain details. Here's what you'll need to add to your room rental agreement:
Personal Information and Other Details
In the first section of your Colorado roommate agreement, you will need to include the details of all the parties involved. State their names and contact details, along with a description of the property and explicit information about the rental period.
Details from the Master Lease Agreement
The new roommate must be aware of the details of the master lease agreement. Furthermore, the lease's start date, duration, and end date must be stated in this section. Even if the lease agreement can be renewed, these details must appear in the document, as it will offer the prospective tenant an indication of what to anticipate.
If a security deposit is necessary, it must be specified in the contract so that it can be divided equally among the occupants and returned in equal portions to each at the end of the contract. Be sure to include language in this portion of the agreement telling the tenants which parts of the apartment will be covered by their security deposit.
You will also need to include details about the rent amount payable each month in addition to the day it is required. It is crucial to include a breakdown of who is responsible for paying what portion of the rent because this agreement is meant to be used when several people are living in the same place.
The monthly rent amount charged will probably depend on the size of the bedroom they are leasing when the rooms differ in size. Additionally, the rates for room rentals are often not broken down per person but rather according to the amount of space that each tenant can claim as their own.
The costs should be divided equally if your tenants will share utilities. Any expense that will not be paid by the landlord must be noted in this section and divided evenly or based on a proportion for each person, as one roommate won't want to be responsible for the utilities.
Cleaning, fixing things, and hosting visitors are all possible topics for this section of the room lease agreement. Any item that seems like it can cause a problem later on, can be mentioned here to prevent future disagreements amongst the renters. If the rules are clearly spelled out, there won't be any problems that could be contested in court, adding unnecessary legal costs.
To be considered legally binding, it is important that the completed document is signed by all the parties involved.
Ensuring that your Colorado roommate agreement or room rental contract is compliant with state and federal law is essential. Here are some of the laws to take note of when creating this type of agreement:
- Lead-based Disclosure. According to federal law, if your property was built before 1978, you must provide a disclosure to alert the new roommate of the possible risk of lead exposure in your roommate rental agreement.
- Security deposits. Unless the lease agreement clearly indicates otherwise, the landlord must refund the deposit to the tenant within one month of the termination of the lease.
When two people are forced to live together, there are bound to be disagreements. However, to minimize the risk of serious problems, it is important to ensure that your agreement is as detailed as possible to provide precise details about boundaries, restrictions, and responsibilities.
You should also conduct a background check on your new tenants to ensure that they have a good credit score and can afford to pay rent each month to prevent falling into any financial issues or problems due to non-payment.
Keep in mind that late fees should apply when the rent is paid after five days, and landlords have a right to evict a tenant in Colorado who fails to pay the rent within 10 days of the due date.
Build Your Own
If you need to create your own Colorado roommate agreement or room rental contract, you can use DoorLoop to quickly and easily create customized legal documents. Our software has a handy autofill tool, so you won't have to spend hours entering your details. Alternatively, you can use our free form:
Contact us today to try DoorLoop out for yourself and book a free demo!
If you need to sign a room rental or roommate agreement with a new tenant, you want to make the process as easy and efficient as possible.
With DoorLoop, you can get your agreements and templates eSigned in a few seconds. You can also get to the eSignature step much faster by creating reusable templates that are autofilled with tenants' information.
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For more information about DoorLoop, learn more or schedule a free demo.
Now that you have all the information you need, you're ready to build your very own Colorado room lease agreement! You can use DoorLoop to get the job done faster, conduct tenant screening, keep track of your accounting, and so much more!
Can a rental room agreement be used in addition to a commercial lease agreement?
No. A commercial lease agreement is used to provide the terms and conditions of leasing a business complex, unit, or space and does not involve the addition of roommates.
Is there a limit to the amount I can charge as a security deposit?
No, unlike many other states, Colorado does not place a restriction on the amount that you may request for a security deposit.
Does a Colorado roommate agreement or room rental agreement need to be signed to be considered legally binding?
Yes. All the parties involved must sign the lease agreement for it to be considered valid. A Colorado roommate agreement will have to be signed by the original tenant and the new tenant, while the room lease agreement must be signed by both tenants and the landlord.