What is the need to sign a Roommate Agreement?

Whether tenants move in with strangers or close friends, roommate agreements avoid arguments between housemates. Students who live on campus at many universities are required to complete a dorm roommate agreement. A written list of roommate rules can help to avoid arguments and maintain harmonious relationships between roommates.

What should be included in a Roommate Agreement?

1. Effective Date of Agreement- provide the effective date of the roommate agreement.
2. Parties name- Due care must be taken to correctly identify the parties to the agreement. Fill in the full name of each roommate with other details such as contact no., and email address. It is paramount to specify the full name of the landlord with contact details.
3. Recitals- most contracts contain, underneath the title and parties’ block but before the body text of the agreement, a group of paragraphs known as the ‘preamble’ ‘recitals’ or ‘whereas’ clauses. Recitals address a few characteristics of the agreement, the related transaction or the parties’ business and help the reader to understand the background before digging into the definition section.
4. Property Address- write the address of the property being shared clearly.
5. Term- the term of the lease is the time period during which the roommates will share the premises. The date of commencement and termination of the lease need to be unambiguously mentioned in the agreement.
6. Rent- roommates may be responsible for the payment of rent as well as additional economic burden of the property such as rent payments, taxes, insurance etc.
7. Payment mechanism of rent- the rent forms a basic element of the agreement, and it must be clearly discussed by the roommates and the landlord. The mode of payment, the rate at which it will increase, due date etc. must be clearly stated in the agreement.

The monthly due date for rent payment should be fixed. The parties are free to determine any date.

The grace period before a penalty is charged must be subject to negotiation. The penalty amount must be negotiated.

8. Expenses Breakdown- to avoid future conflicts between the roommates, it is advisable to write down a breakdown of each tenant’ contribution towards shared expenses, including rent, security deposit, utilities, and shared supplies/ groceries.
9. Shared and private rooms- it is necessary to indicate which parts of the house are common areas and which rooms are private to one or more tenants.
10. Security Deposits- it should be clearly specified whether there will be any interest on the deposit. In India, usually, the deposit is interest-free. The manner and time of refund of the security deposit must be specified. Oftentimes, it is specified that the deposit will be returned immediately at the time of handing over possession.
11. Guests and Parties- Roommates should discuss collectively under what circumstances each other’s consent is required before having guests over. Set guidelines for parties and bigger groups of guests, as well as restrictions on how frequently roommates may receive visitors.
12. Pets- if your lease allows, consider if you are fine with having a pet in the house. It is necessary to specify in writing what will happen if the pet owner is out of town, or the pet causes any damage to the property.
13. Chores- it is necessary to divide the chores between the roommates. The upkeep and thorough cleaning of communal spaces including the kitchen, bathroom, and living area should be shared by all roommates. A rotating plan for daily, weekly, and monthly chores is something we advise doing.
14. Quiet Hours- It is wise to share each tenant’s timetable so that everyone may respect one another’s sleeping and studying schedules. Establish designated quiet times (for instance, between 12 AM and 7 AM) during which roommates agree to be as quiet as possible.
15. Repairs and Maintenance of Premises- the obligation of repairs and maintenance of the premises must be evenly divided between the landlords and roommates. It is necessary to specify clearly which party is responsible for what repairs and maintenance. It is also advisable to put a cap on the expenditure the tenant must incur for such repairs.
16. Early move out- What will happen if a roommate vacates before the contract expires is one of the main worries when sharing a lease with other people. In most cases, roommates are still expected to pay their share of the rent even if they leave early. However, some agreements permit a renter to find a replacement tenant or sublet their space. Include any essential provisions for early move-out in your roommate agreement so that tenants are aware of their options in the event that their circumstances call for them to do so.
17. Rules of Practice- the contract should clearly state the treatment required for the premise and maintenance around the surroundings along with the premises. This section should also mention whether or not alterations may be made. Finally, it should state the terms and conditions of using common amenities.
18. Governing Law- under this clause, fill in the state’s laws that will govern the construction of the roommate agreement.
19. Signature and date- at the end of the agreement, it should be signed by both the parties i.e., by the roommates and landlord. The date of signing should be accompanied with the signature itself.