Room Rental Agreement (NM)

Renting out an extra room in your house that you are not otherwise using can be a great way to bring in extra cash. However, it's important to have a written agreement in place to clearly outline the rights and obligations of all parties. This is especially important when you will be living together with other individuals. This agreement will outline responsibility for utility bills, rules surrounding guests and parties, rules regarding smoking and alcohol use, and privacy rights, among other things.

This particular room rental agreement should be used where you are renting a single bedroom to 1-2 people on a month-to-month basis. A month-to-month basis means that this agreement continues each month until either one of you provides the notice required by the rental agreement. Usually this period of time is 30 days, but can be shorter depending on state. It is only for use in an owner-occupied property and not for a room rental in a non-owner occupied property, such as a boarding house, or by a tenant wishing to sublet.

Keep in mind that many states treat a Room Rental Agreement the same way a Lease Agreement is treated. Despite the fact that you reside within the same property, laws concerning lead paint, evictions and security deposits may still apply. Choose your tenant wisely as any conflict could result in a very uncomfortable living arrangement until the legal process has been completed to evict them. Be sure you fully understand the laws prior to entering into a Room Rental Agreement.