Can you rent out a room if you are renting?

Renting out an unused room can be a practical way to offset housing costs. For tenants, this process requires careful review of your obligations and securing the proper permissions, as you are not the property owner. Successfully bringing in a subtenant hinges on understanding your existing lease, communicating with your landlord, and formalizing the new arrangement to remain compliant with your legal responsibilities.

Confirming Your Right to Sublet

Before searching for a potential roommate, your first step is to examine your current lease agreement. Look for specific clauses that mention “subletting,” “assignment,” or “additional occupants.” A sublet clause will state the terms under which you can rent out a portion of your space; it may be prohibited entirely or allowed with the landlord’s consent.

Subletting means you are adding a new tenant who pays you rent, but you remain fully responsible to the landlord for the entire lease. An “assignment” is different, involving the transfer of your entire lease to a new person, which ends your responsibilities. Some leases have clauses about “guests” or “additional occupants,” which might specify time limits for how long someone can stay before they are considered an unauthorized tenant. If your lease prohibits subletting, you may still ask your landlord for an exception.

Beyond the lease, you must consider local and municipal laws. Many cities have occupancy limits dictating how many people can legally reside in a dwelling based on the number of bedrooms or square footage. You can find this information by searching for your city or county’s housing or property maintenance codes online.

Obtaining Landlord Consent

Once you confirm that your lease and local laws permit subletting, you must formally request permission from your landlord. This request should always be made in writing to create a clear record of your communication. An email is often sufficient, but a certified letter provides proof of delivery.

Your letter to the landlord should state your intention to sublet a room and briefly explain your reason. If you have already identified a potential subtenant, include their name and basic information. Reassure your landlord that you will continue to be responsible for the full rent payment and all other terms of the original lease.

Receiving your landlord’s consent in writing is a requirement. An oral agreement can be difficult to prove in a dispute, so do not allow a subtenant to move in until you have a signed letter or email from your landlord approving the arrangement.

Preparing the Sublease Agreement

With the landlord’s approval secured, you must create a formal sublease agreement. This document is a legally binding contract between you (the sublessor) and your new roommate (the sublessee). While you can find templates online, the agreement must be tailored to your specific situation and include several components to be effective.

The agreement must identify all parties, the property address, and reference the master lease, stating that the sublease is subject to its terms. This ensures the subtenant is aware of all property rules. The agreement should also detail:

• The exact monthly rent amount, due date, and accepted payment methods.
• The security deposit amount and the conditions for its return.
• How utilities will be divided, such as a 50/50 split or a fixed fee.
• Specific house rules on guests, noise levels, or shared spaces.

Managing the Subtenant Relationship

Before anyone signs the agreement, you should screen potential subtenants thoroughly. This process can include running a credit check, verifying employment or income, and contacting references.

Once you have selected a suitable candidate, both you and the subtenant must sign the sublease agreement. After signing, you will collect the security deposit. The requirements for handling security deposits vary by jurisdiction. In some areas, you may be required to hold these funds in a separate bank account, which may need to be interest-bearing.

Finally, establish a clear and consistent process for collecting rent each month. Providing receipts for payments creates a helpful record for both parties. Maintaining open communication and adhering to the terms in the sublease agreement will help ensure a smooth arrangement for the duration of the term.