How do I go about creating a lease agreement if I am trying to rent out an extra room in my home?

Question

How do I go about creating a lease agreement if I am trying to rent out an extra room in my home?

Answer 1

1.  Make sure you check out your intended tenant thoroughly.

2.  Go to a legal supply store and buy a lease form from them. Get the "landlord" version, not the "tenant" version, if there is such a difference in your jurisdiction. The difference is which party is favored by the terms of the lease. If you can't find a legal supply store near you, go to a friendly real estate agent or broker and get one of his/her multi-part forms. If all else fails, call Histacount Deluxe Pinpoint at 1-800-645-5220.

Answer 2

You can go to Staples or Office Depot and buy a kit.  Keep in mind there are tax implications to renting out a room in your house.  For example, if the room in your house is 10% of the total square footage, you have to treat 10% of your home as a "rental property" and all the tax implications that come with that (including when you sell it you'll pay capital gains on 10% of your home the Rental Property portion)... etc.

Answer 3

Be very careful on this one and get legal advise, not from the Internet, but from a legal source.

  There are some types of lease agreements where if the leasing or renting party fails to pay rent when due, or damages the property, or is guilty of misuse and illegal use, you cannot get him or her out without court orders, and that can be expensive and time consuming, and in the meantime, you get no rent.

  Sometimes a simple weekly or monthly agreement is best.