MAKE YOUR FREE Room rental agreement

Use this tenancy agreement to rent out a room in a property you own but do not live in.

For use in England and Wales only.

A room rental agreement is a legally binding tenancy agreement for private landlords. It allows a landlord to rent out rooms in a property they own but do not live in.

Give yourself peace of mind when letting to a group of people who are not all members of the same family by creating separate agreements for each tenant. Try this assured shorthold tenancy (AST) to let out your whole house for a short period at full market rent and be able to get it back, if you wish, after six months. 

This type of tenancy agreement also makes it simpler and quicker to evict tenants who fail to pay their rent or cause a nuisance and complies with tenant fees legislation.

Use this room rental agreement:

• when you are looking to rent out a room (or multiple rooms) at your property

• when you want to enter into separate tenancy agreements for each room

• when you will not be living at the property

• when the tenant is an individual

• when the property will be the tenant's main home

• when there is only one landlord

• only when the property is in England and Wales

This room rental agreement template covers:

• the amount of rent payable for the room

• if a security deposit is required and how much it is

• landlord responsibilities

• obligations and duties of the tenants eg reporting any damage, keeping the room in good condition

• optional rent increase

• ending the agreement

• the requirements under the Homes (Fitness for Human Habitation) Act 2018 and the Tenant Fees Act 2019

You will need a room rental agreement if you own a property that you do not live in and want to rent it to a number of tenants at a market rent.

If you live in the property you want to rent out, you should make a Lodger agreement.

There can be no more than three tenants (who are unrelated) living at the property. If there are more than three unrelated tenants the property may be classified as a House in Multiple Occupation (HMO) and additional regulations may apply. This includes applying for an HMO licence and carrying out further property checks.

The tenant has exclusive use of a bedroom at the property. They also have the right to use other parts of the property that are shared with other tenants. These areas are known as the common areas and are usually the kitchen, living room and bathroom.

The rent can be set at any level up to £100,000 per year in England or Wales and can be payable monthly or weekly. The level of rent will be the market rent similar to other lodgings and tenancies in the local area. 

The rent in this agreement does not include outgoings (eg electricity and gas) and the tenant is responsible for a proportion of these costs. If you want your residential tenancy to include outgoings, speak to a lawyer.

The landlord can ask for a deposit to cover the cost of any breakages or damage to the property or its contents. If there is no damage or rent due when the tenant leaves, the money is returned. All deposits must be placed in a government-authorised tenancy deposit scheme within 30 days of receiving the deposit. For more information, read Deposit protection schemes.

An Inventory is a detailed list of all of the items in the property that the tenant can use. An inventory should always be made as it can be used to prevent disputes at a later time about the condition of items.

A landlord can increase the rent during the course of a tenancy using a rent increase clause in the tenancy agreement. Landlords must also follow the correct procedures and the proposed rent increase must not be excessive or unfair. This tenancy lets you choose if you want to increase the rent (and how).

It is recommended that for tenancies for less than two years the rent is fixed for the duration of the tenancy. If the tenancy is for more than two years, the rent can either be fixed for the duration of the tenancy or the landlord can choose to increase the rent once per year.

For more information, read Private renting rent increases.

Generally, tenants cannot end the agreement before the end of the tenancy term unless a break clause is present. This tenancy agreement allows you to specify if a break clause exists, who can rely on the break clause and how.

Termination by the landlord depends on when the notice to terminate is given. However, landlords cannot get possession of the property during the first six months of the tenancy.

Yes, this document complies with the Tenant Fees Act 2019. It excludes fees prohibited under the Act, while it also allows for certain damages to be recoverable. For more information, read Tenant fees.

Ask a lawyer for advice on:

• tenants who want to run a business from the property
• student/college accommodation
• advice if there are 3 or more prospective tenants that form more than 1 household, as the property may need to be licensed
• a property that is outside England and Wales