Roommate Agreement FAQ - United States

Roommate Agreement FAQ - United StatesRoommate Agreement FAQ - United StatesGeneral Information about Roommate AgreementsWho are the parties in a Roommate Agreement? Generally, all the members of a single household are parties in a Roommate Agreement. Oftentimes, the property owner or landlord of that property would not be a anlass unless they also reside in the home with the other occupants. If the landlord lives in the home, renting out a room using a Residential Rental Agreement may be mora suitable and offer more protection for both the landlord and tenant(s) than a Roommate Agreement would. What is included in a Roommate Agreement? A Roommate Agreement typically includes The date the agreement was made The address of the property where everyone will live The personenname of each roommate The details of the Rental Agreement (if any) that one or more of the roommates signed with the landlord of the property, including the dates the lease begins and ends and the type of lease entered into (fixed or automatic renewal) The landlords name and contact information (if there is one) The total security deposit paid (or to be paid) to the landlord (if any) The total rent amount to be paid, the frequency of payments (weekly, monthly, etc.), and when it is due How payments, including rent, utilities, and deposits, will be divided among roommates (and if each roommate will pay equal amounts) How the household will be managed, including rules, duties, and restrictions Information on how one or more roommate can terminate the tenancy, if needed Why should I have a Roommate Agreement? With a written Roommate A greement in place, all the members of the household can examine the terms and conditions thoroughly and anticipate and plan for profil problems before they arise. It is common for roommates to make informal, oral agreements about their living situation, such as how rent, bills, and chores will be divided or what the rules of the household are, but oral agreements are easily forgotten or misinterpreted, which is why it is better to create a written one. What is the difference between a Residential Lease Agreement and a Roommate Agreement? The main difference between a Residential Lease Agreement and a Roommate Agreement is based on which parties are involved. A Residential Lease Agreement is an agreement between a property owner (or landlord) and one or more tenants whereas a Roommate Agreement is an agreement between all the individuals sharing one living space. Because a landlord is a part y in a Residential Lease Agreement, the agreement includes terms pertaining to the landlord, for example, their obligations to the tenant. It also addresses the tenants right to occupy the leased property without being unreasonably disturbed by the landlord. A Roommate Agreement, on the other hand, is not binding on the landlord and only applies to individuals sharing one home as roommates. Is a Roommate Agreement legally binding? The financial obligations listed in a Roommate Agreement, such as duties to pay rent or bills, are legally binding and one roommate can sue another for failing to pay their portion of rent or bills. That said, you and your roommates likely signed a Rental Agreement for your living space, and that agreement is binding regardless of any issues you and your roommates may have. This means you and your co-tenants are still obligated to pay rent on time and in full even if one roommate f ails to contribute their share. A Roommate Agreement may include some components (such as household chores) that may not be enforceable in court but are useful in establishing expectations in the home, mitigating disagreements, and maintaining a pleasant living situation. What if a roommate needs to end a lease early? Prior to moving in, you and your co-tenants signed a Lease Agreement to rent the property for a specific period of time. The lease is still binding even if one roommate leaves before the lease ends. For this reason, it is recommended that roommates discuss what to do and how rent will be paid if one roommate decides to move out before the end of the lease. Some landlords may allow tenants to end a lease early with advance notice or by paying a fee. Similarly, roommates could allow a roommate to move out with notice or a fee. Keep in mind, if the roommate i s listed as a tenant in the Residential Lease Agreement, they are still bound to that agreement unless the landlord indicates otherwise. Upon request, a landlord can relieve a tenant of their obligations or assign their obligations to a new tenant (who will become a new roommate in the home), but whether this request is accommodated is up to the landlordnot the roommates. Also remember that individuals named as tenants are all equally responsible (a concept called joint and several liability) for the amount of rent listed in the Lease Agreement. In other words, if one roommate doesnt pay their share of rent, the landlord can demand the entire payment from any of the tenants named in the Lease Agreement. handhabung Rent, Utilities, and Deposits How should roommates split rent? Roommates can choose to split rent equally or unequally, and how they decide to divide rent can depend on the living situation or any negotiations made bet ween housemates. Oftentimes, it is easier for roommates to split rent payments equally amongst all the homes occupants. However, unequal rent payments may be preferable in living situations such as Two roommates are a couple and are sharing one room One (or more) roommate has a child (or children) and/or a pet One (or more) roommate has access to more household benefits (for instance, one or more household members have sole use of the laundry room) Keep in mind, regardless of how roommates choose to divide their rent payments, landlords typically prefer one lump payment for rent, such as one check from one occupants bank account as opposed to multiple checks from each house members bank account. For this reason, it is recommended that roommates designate one person to collect rent from the others t o pay the landlord. How should roommates divide utility costs? Roommates can divide utility costs equally or unequally, depending on their situation, and may find it helpful to clarify Will utility costs be mandatory, or can one or more roommates opt out of using and paying for a service (for instance, if the household has cable TV but one roommate only uses Netflix or another streaming service, are they still required to contribute towards the cable bill)? How will each roommates portion of a utility payment be collected, and how will the entire payment be made? Keep in mind, the utility bill will likely be in one roommates name (not in all the roommates names) and that roommate will be responsible for contacting the company, if required. This person would also bear the consequences of nonpayment (like a lower credit scor e), which is why having a Roommate Agreement is a good idea as it would provide that roommate some sort of protection if nonpayment occurred. What is a security deposit? A security deposit, sometimes called a damage deposit, is a sum of money paid by the tenant(s) of a rental property to the landlord of a rental property. A deposit is paid at the departure of the tenancy and used to recover unpaid rent or utilities, if any, or pay the cost of repairs for any damages made by the tenant(s) or their houseguest(s), with the exception of normal wear and tear (sometimes called ordinary wear and tear). At the end of the tenancy, the deposit is returned to the tenant, minus any funds used to cover unpaid bills or repair costs. How should roommates split the cost of a security deposit? In a roommate situation, the whole household generally contributes money for the security deposit t hat is provided to the landlord. As with rent, the roommates can choose to split the damage deposit equally or unequally, depending on the living situation (like if two people are sharing one room) or on any agreements made between the occupants. When the tenancy ends, the roommates reclaim the money they contributed towards the deposit, less any funds removed from the deposit by the landlord to cover unpaid bills or repair costs. Issues may arise if one or more of the roommates decides to move out before the end of their rental propertys lease and thus before their portion of the deposit is returned by the landlord. Roommates may want to address how this problem can be resolved (such as by having a new roommate pay a departing roommates deposit) at the beginning of their tenancy. What is normal wear and tear? Normal wear and tear, sometimes called ordinary wear and tear, is a concept that applies to damage deposits. Normal wear and tear is defined as damage or wear that occurs from everyday living that cannot be repaired using funds from a tenants security deposit. For example, faded wall paint caused by sunlight exposure would be considered normal wear and tear. On the other hand, the tenant painting the walls a different color without permission would not be considered normal wear and tear, and, in this instance, the cost to repaint could be withdrawn from the tenants deposit. In short, the concept of normal wear and tear is used to assist landlords and tenants in determining which party (the landlord or tenant) must pay for the cost of a particular repair. How should roommates handle pet deposits or fees? If your Lease Agreement permits pets on the premises, you may want to discuss how pet deposits or fees will be handled between roommates. A pet deposit is a sum of mon ey held by a landlord to cover damages, if any, made by a pet. Unused deposits are returned to tenants. A pet fee, on the other hand, is a nonrefundable charge tenants pay to have pets in their home. This fee is typically added to your rent payments. Roommates may want to discuss who will pay the deposit or fee (which may depend on who owns the pet) and how deposits will be reimbursed (particularly in instances when one roommate who shared this cost moves out before the lease ends). Managing Rules and Chores in a Roommate AgreementShould rules be included in a Roommate Agreement? To prevent future disagreements over household rules, it is recommended that roommates include household rules in their Roommate Agreement. Roommates should discuss any rules that are relevant to their living situation, for instance Smoking Can roommates smoke on the premises and where? Alcohol Can roommates drink alcohol on the premises, is alcohol allowed to be kept in the fridge, and are there any restrictions to drinking (such as defining which nights roommates are allowed to drink)? Parties What constitutes a party, are parties okay in the household, and do roommates need approval from the rest of the household before planning a party? Quiet hours At what times are roommates required to be quiet? Guests When are guests allowed over, at what times, and can they stay overnight? Personal property Can one roommate use another roommates property (such as a computer or video game system) and do they need to request permission before each use? There may be other rules applicable to your particular living situation, such as rules regarding Pets F ood Security Keep in mind, some of the aforementioned rules may be addressed within your Residential Lease Agreement and any agreements made between roommates regarding rules will be dependent on the contents of the Lease Agreement for the property. Should roommates include chores in a Roommate Agreement? Discussing household chores is always a good idea and including those decisions in your Roommate Agreement is helpful in ensuring everyone knows what is expected of them. In a Roommate Agreement, roommates can specify if chores will be divided evenly, unevenly, or based on a negotiated chore list that can be attached to your contract. In some instances, it makes sense to assign chores unevenly. For example, if one roommate owns a pet, that roommate could be solely responsible for caring for and cleaning up after the pet. Are rules and chores included in a Roommate Agreement legally enforceable? There are parts of a Roommate Agreement, specifically pertaining to rules and chores, that may not be legally enforceable. However, often it depends on the situation itself and whether the parties experienced any loss, damage, or injury. As an example, you will likely not succeed in suing your roommate over them failing to wash the dishes. On the other hand, lets say the Roommate Agreement indicates one roommate is responsible for shoveling snow from the homes sidewalks and they fail to do so. If the household is fined because that roommate neglected to fulfill his duties, as agreed upon in your Roommate Agreement, then the other roommates may be able to pursue legal action against the offending roommate. However, a court will take most financial issues seriously. For instance, if a roommate failed to pay their portion of rent on time, the other roommates could take legal action against them. Why should roommates address rules and chores in a Roommate Agreement? With a written record of your agreements, roommates know what conduct is appropriate in the home and what is expected of them. It also provides something roommates can reference in order to resolve potential disagreements. Dealing with Specific Rules and Chores in a Roommate AgreementHow should roommates handle smoking in the home? The Lease Agreement you and your co-tenants signed with your landlord will indicate whether smoking is allowed in your rental unit. However, regardless if smoking is allowed indoors, roommates should discuss smoking in more detail, specifically where roommates can smoke inside or outside the house. If smoking is allowed indoors, roommates will want to address if smoking in bedrooms or common areas, such as the living r oom or bathroom, is acceptable. If smoking is only acceptable outside, roommates should discuss where it is appropriate (e.g. on the balcony, porch, or in the backyard). Roommates may want to discuss other issues as well, such as what will be done if The designated smoking area becomes a problem (e.g. gets overcrowded, blocks exits, etc.) Smoke drifts into non-designated smoking areas There is a concern about the current household rules pertaining to smoking Cigarette butts are not disposed of properly One or more of the roommates is allergic (or develops an allergy) to smoke Even if all the occupants of the house are nonsmokers, it is still recommended that roommates discuss smoking to protect themselves in the event that one roommate starts smoking in the future, a new roommate who i s a smoker moves in, or a guest who is a smoker is invited to the home. How should roommates address alcohol in the home? Everyone has their own opinion about alcohol, and some individuals may prefer having an alcohol-free home for a variety of reasons. Because alcohol can be a difficult topic to discuss with roommates, especially after everyone has settled into the home, it is recommended that roommates consider rules pertaining to alcohol and include them in their Roommate Agreement. Roommates may want to deliberate If drinking alcohol is allowed in the home If alcohol can be kept on the premises (e.g. in a liquor cabinet or in the fridge) If roommates are allowed to consume alcohol on work nights If roommates can keep open alcohol containers in the fridge and/or drink openly in the household Micromanaging the use of alcohol to this degree may seem extreme. However, addressing these topics can help ensure everyone remains comfortable in their living space. How should roommates handle guests in the home? Roommates should discuss how guests will be handled in the home. Particularly If guests are allowed in the home How many guests can be in the home at one time If a roommate is required to ask permission before inviting a guest to the home If guests can stay in the home overnight How an unwanted guest will be handled Overnight Guests Overnight guests can become a problem in a shared living situation. If roommates decide to let guests to stay overnight, they may want to discuss Where guests will sleep for instance, are guests required to sleep in that particular roommates room or can they sleep on the living room couch or in a spare room, if one exists? If there is a couch or spare room, will roommates need to reserve a sleeping space for their guest in advance? How many consecutive nights a guest can stay overnight for If a guest breaks a house rule, how it will be handled for example, can another roommate ask a guest to leave if they are not following the house rules? Roommates may decide not to allow guests in the home overnight but may still find it helpful to discuss rules pertaining to one-off incidents, such as what will occur if a guest drinks too much alcohol and cannot drive home or if a guest is unable to go home due to being locked out. Unwanted Guests There are various reasons why other roommates would want a roommates guest to leave the premises. For instance, they could be rude, disrespectful, or abusive toward the others in the home or may be willfully ignoring the house rules. Discussing unwanted guests between roommates can be uncomfortable, especially if the topic is brought up after the guest has been invited into the home. It is recommended that roommates consider this issue prior to moving in together, specifically If roommates can prohibit a guest If a guests inappropriate behavior can have them removed from the home (and what kind of inappropriate behavior can result in a guests removal) If there are limits to how many consecutive days a guest can come over If one roommate and a guest do not get along, what can be done to minimize their interaction (for instance, prohibiting th at guest from staying overnight) How should roommates manage parties in the home? There may be a time when a roommate wishes to host an event in the home. To prepare for this eventual request, roommates should discuss how the household will handle parties. For instance, roommates might clarify What is considered a party as opposed to an informal gathering? How many guests can be in the home at one time? On which days can a roommate have a party for instance, can a roommate invite people over on a weekday? Can roommates restrict a guest from attending another roommates gathering? Can roommates limit the number of gatherings one roommate may have per month? Who will be responsible for managing guests and cleaning up after the event? What can roommates do if another roommate is not following the house rules pertaining to guests or parties? By establishing such rules when everyone first moves in, roommates can feel at ease knowing parties in the home shouldnt get out of hand (and knowing what to do in the event that it does). How should roommates handle noise in the household? Your municipality may have laws pertaining to noise (known as noise ordinances) but creating an agreement between roommates about noise is typically a good idea. For instance, roommates may want to consider when the homes quiet hours start and end (such as 10 p.m. to 7 a.m. on weekdays and 11 p.m. to 8 a.m. on weekends) and what the appropriate volume is for televisions, stereos, computers, or other devices during those hours. Should roommates make rules about the use of personal property? It is recommen ded that roommates make rules regarding whether other members of the household can use another roommates personal property and if roommates should ask permission before each use. Personal property could include items such as Televisions Stereo or gaming systems Computers Kitchen appliances (e.g. blenders, toasters, etc.) Motor vehicles Clothes Books Subscriptions to a service (e.g. Netflix, Spotify, etc.) Keep in mind, whether roommates can use items could depend on where the item is located. For instance, if a television that belongs to one roommate is placed in a shared living room, it can generally be assumed that any individual using that space could use the television. Should r oommates discuss pets in their Roommate Agreement? The Rental Lease created with your landlord should indicate whether pets are permitted on the property. If there is no mention of pets in your Lease Agreement, you may want to ask your landlord for permission before bringing a pet in to the home. If pets are allowed, roommates may find it helpful to discuss how pets will be handled, including Whether pets will be allowed in the home (as roommates can still agree among themselves not to allow pets regardless if the propertys lease allows it) Who will be responsible for looking after the pet Where the pet will sleep Who will pay the expenses related to the pet, such as pet deposits or fees, food, veterinary bills, etc. Should roommates address food in their Roommate Agreement? A Roommate Agreement works best when it is thorough and explores many situations that may come up when people live together. Discussing food and food-related expenses is a good idea in order to clarify Whether roommates will share food expenses (or if each person will be responsible for their own food) Whether certain items (such as condiments, spices, etc.) will be purchased by the household regardless if roommates choose not to share food costs If responsibilities like grocery shopping or cooking will be shared among members of the household How space in the fridge will be divided If food costs are not shared, how roommates will identify which items belong to each resident How should roommates address security in the home? It is important to consider how security will be handled in a shared living situation. Roommates may benefit from discussing specific rules about locking up the home, if anyone outside the home will have an extra key, and where spare keys will be kept, if any. The home may also have a security system. If so, roommates may need to discuss if the cost of the system will be shared equally and when the alarm should be turned on (e.g. at night, when no one is home, etc.). How should roommates divide chores? Roommates can prevent disagreements by discussing chores before everyone moves in, for instance Who will be responsible for which chores? When are chores expected to be completed? Keep in mind that some peoples standards for cleanliness differ from others, so you may also want to discuss everyones expectations for how clean the property will be kept in order to avoid disagreements about cle anliness in the future. What should roommates do about repairs? In a rental property, some repairs are required to be fixed by the landlord, such as Repairs that affect the habitability of the unit (e.g. plumbing or heating issues) Repairs on amentities that are listed in the Lease Agreement (for example, if a Lease Agreement indicates a washer and dryer are included with your unit, the landlord is required to fix it) Other repairs are typically made at the end of the tenancy and are paid for by the landlord or the tenants depending on who caused the damage. If the damage was caused by the tenants or their guests, then the tenants pay the cost of the damage, usually using their security deposit. When it comes to paying for repairs using the security deposit, roommates may want to discuss who will pay for damage that wa s not caused by everyone in the home (like if one roommate made a hole in the drywall). Signing a Roommate AgreementHow do you sign a Roommate Agreement? The only requirement for signing a Roommate Agreement is that all the parties involved use their full, legal name when signing. Signing your agreement in front of a witness is not required but can assist roommates in the event that there is doubt about whether a roommate signed the agreement. Do you need to sign a Roommate Agreement in front of a witness? No, you do not need to sign your Roommate Agreement in front of a witness for it to be a valid agreement. However, signing in front of a witness can help prove that the roommate intended to sign and that the signatures are legitimate. What name should roommates use to sign a Roommate Agreement? Roommates should sign their Roommate Agreement using their full, legal name. Using an individuals full, legal name (as opposed to a nickname) ensures the document can be used in court in case the courts assistance is required to resolve an issue. How do you add a roommate to the household after a Roommate Agreement is signed? To add a new roommate, you should first receive permission from your landlord. Your landlord may decide to update your Residential Lease Agreement to accurately reflect the current situation. This may include Your landlord reviewing your propertys occupancy limits (i.e. the number of people who can live in one home based on the size of the property) Your landlord checking the new roommates credit history, rental history, and references If your landlord approves their application, roommates can create an entirely new Roommate Agreement with all parties or amend their current agreement using a Contract Addendum (a document that is used to freundchen the terms of an existing contract).