What’s a Room Rental Agreement?
Room Rental Agreements are written agreements between a landlord and a tenant defining the relationship between the two parties while establishing the rules and expectations for the leased space. Room rental agreements are commonly used for rentals of a room in a home, room in a non-transient youth facility or room in a school or other non-profit institution. For example , a room rental agreement could be used for a room in a dormitory at a university. Room rental agreements differ from traditional leases as the individual renting out the space is often sharing common space with the roommate(s) or tenant(s) as opposed to renting out an entire apartment or house. Room rental agreements are governed by the Colorado Roommate Law, Colorado Civil Code §38-12-101.
Essential Elements of a Room Rental Agreement in Colorado
The essential components of a Colorado room rental agreement are similar in nature to those of a standard Colorado rental lease. You should at least include those items that are required in a lease, set out your expectations, and describe the obligations and responsibilities of each party.
The essential clauses and other components you should include are the following:
Rent – describe how much the rent is and when and how it is to be paid. For example, is the rent due on the first day of the month? Does the renter pay weekly, bi-weekly, or monthly? Remember, never allow for any cash payments. Cash is easily lost and very difficult to prove. Payment type is important, too. Should it be paid by cash, check, money order or electronically?
Security deposit – while Colorado does not have a statutory limit on the amount of deposit you can require, it is advisable to only require the amount that is necessary for your financial interest. Some landlords will even waive the requirement for a security deposit if there are no potential issues with the person leasing the room. Statutorily, landlords must notify tenants about interest on the deposit and how the deposit is being held.
Lease term – while room leaser’s often believe the lease is indefinite and allows them to stay until they find more permanent housing, the truth is that a Colorado landlord-tenant should limit the term of the lease in order to have clear rights going forward if a dispute arises. It is easy to just state that the lease starts from such and such date, but be sure to also for what duration. For example, you can state that the lease is from April 1, 2020 to June 30, 2020 or you might want to limit the lease to one month at a time (meaning, at least 30 days’ notice must be provided prior to termination) so that you both have time to remedy any problems you might be having with each other.
Pet policy – this one seems rather obvious; however, as a landlord, you may have a difficult time with some tenants with pets. If you do not allow pets, it is best to just say so. It avoids problems and arguments in the future.
Entry – in Colorado, if you ever want to enter the room for maintenance, cleaning or inspection, etc. you must give the tenant notice of your intent (24 hours is generally reasonable) and also provide a specific timeframe (i.e. from 10 a.m. to noon).
House rules or policies – you may want to include other details like whether smoking, listening to loud music or watching loud movies is allowed and rules regarding guests. Make sure to also outline any common area expectations like cooking and cleaning as well as chore expectations. The goal is to avoid arguments or misunderstandings.
Additional documents – you may want to attach other documents to the room rental agreement you have with your tenant. For example, you may have an application or a checklist that was filled out at the time of lease signing.
Requirements to Rent a Room in Colorado
In Colorado, the specific legal requirements and regulations governing room rental agreements can be found in the Colorado Revised Statutes, Chapters 13-40 and 38-12. Colorado statutes regulate the four potential types of legal arrangements that could apply to room rentals – land leases, leases of residential premises, tenancies, and lodger arrangements.
IMPORTANT NOTE: If you qualify for assistance from a low-income public housing agency, or in the case of an emergency, these protections may vary. In addition, if your landlord participates in a federal or state program providing subsidies including very low-income Section 8, some of the protections may not apply to you.
Lodger/Tenant Relationship. When a tenant has rented a room in which he or she resides and shares bathroom and/or kitchen facilities with an owner, the relationship between the parties is that of lodger/tenant relationship. As a lodger, the tenant has no special rights to enter the private, separate living space of the owner. The lodger may have access during normal waking hours only, and when agreed upon by both parties, but at all times must be given a reasonable amount of prior notice and those times should be scheduled between the parties. Colorado law provides that if the landlord or owner becomes incapable of caring for him or herself due to physical or mental incapacity, and the bed and breakfast services terminates, then the tenant shall give 30 days’ notice to quit and also provide remuneration for room rent provided and where appropriate, for food prepared, and care given.
In the alternative, a tenant may rent separate space on the premises from the owner which is fully furnished and includes access to a private bathroom and kitchen. In this case, the tenant is more than a lodger, the relationship is a tenancy as defined and protected under Colorado law. Tenants have more rights. The owner must give the tenant proper notice of termination and follow all of the protections afforded by statute.
Land Leases. There are four types of leases or tenancies of interest here, all with their own set of protections set forth by Colorado law. Land leases include the following: commercial or industrial real estate leases, leases of residential premises, tenancies, and lodging agreements. The protections for all four types of leases are slightly different. Commercial and industrial leases are also referred to as land leases and tenancies with different specific rights and obligations attached. The protections afforded to the tenants will depend on the statements made on the agreement and whether there is room rental.
Lodging Agreement is an agreement for the use of a room for dwelling purposes with or without food or additional services. Lodging agreements do not include the right to use separate space on the premises. This type of agreement is governed by C.R.S. 38-12-902, including the protections listed below:
Tenancies. Tenancies or common interest communities are governed by the Colorado Common Interest Communities Act (CCIOA) and the Colorado Revised Statutes, Chapter 38, Sections 38-33.3-101 to -320.
Leases for Residential Premises. If the lease is for residential premises, then it is also governed by the Colorado Revised Statutes, Chapter 38, Sections 38-12-101 to -602.
Commercial Leases. If the lease is for a commercial business, then it is governed by the Colorado Revised Statutes (C.R.S), Chapter 38, Section 38-30-101 to -140 and applicable contract agreements.
How to Tailor a Room Rental Agreement
A room rental agreement can be highly customized to meet the needs of the parties but must comply with Colorado law. For example, while landlords often believe a room rental agreement should include a clause that tips the balance in their favor to protect their expectations, tenants should not agree to clauses in a room rental agreement that violate Colorado law governing residential tenancies. An example? In Colorado, a landlord cannot charge a tenant for attorney’s fees for the costs of a breach or enforcement (the "American Rule"). Colorado Revised Statute § 13-17-102. Most landlords understand this and try to include the following clause in room rental agreements with tenants: "In the event that Tenant breaches this Agreement, Tenant shall pay all Landlord’s costs, fees and expenses incurred in enforcing this Agreement, including, without limitation, reasonable attorney’s fees, costs and expenses such as depositions, court filing fees , court appearance fees, fees for removal of Tenant and Tenant’s personal property and other costs associated with litigation of this matter." This provision is illegal. There are many other ways in which room rental agreements may be tailored to the parties’ needs in compliance with the law. For example, the parties may agree (as is common) to make rent due on the first of the month. The parties may also agree to require the tenant to give notice if the tenant intends to vacate in advance of the end of the lease term. On the other hand, while Colorado Revised Statute § 13-40-112.3.5 protects the parties from "self-help" it does not permit a landlord to turn off utilities. Instead of attempting to turn off utilities for failure to pay rent, landlords should consider serving tenants with a 3-Day Notice to Quit and utilizing the forcible entry and detainer procedure described in Colorado Revised Statute § 13-40-106 or in applicable municipal ordinances.
Common Pitfalls and Errors
There are a number of common mistakes that landlords and tenants should be sure to avoid when creating or signing a room rental agreement in Colorado. For instance, one of the more typically overlooked aspects of most room rental agreements is the specific inclusion of provisions relating to the affordability of rent. As experts in the field, our local room rental lawyers understand that many disputes over room rentals occur because the terms of the agreement were not sufficiently clear on this point.
A second common pitfall that we often see occurs where an agreement does not sufficiently address the privacy and access considerations for both parties. Coverage on these topics is critical, as issues frequently arise when either party believes that they have different rights when it comes to privacy and access to the room, or the home itself, than what the room rental agreement actually affords them.
As noted above, rents are another area that can lead to problems if the agreement is deficient. There are any number of issues that can arise if the agreement fails to accurately address the topic of the rental rate of the room, such as the amount, payment due dates, and late fees.
Issues can also arise as to pets, and often are. For this reason, we work closely with clients to ensure that provisions addressing pets are included in the agreement and are sufficiently clear.
A final common pitfall that we advise our clients to be aware of is how concerned they should be with issues of habitability and habitability standards. While the majority of room rentals do have such concerns, there is an important distinction that should be made when it comes to the issue of a landlord’s duty to maintain the property. For example, one of the problems that we frequently encounter is that tenants will assume that they have the same maintenance and repair duties as residential landlords do. The reality is that tenants seldom do have this duty and should not expect to do so.
Handling Legal Disputes
If you are not able to resolve your dispute with the landlord regarding your room rental situation – either the amount of rent you owe, or your landlord’s responsibility to pay utilities or other costs – you can seek outside help. Persistence seems to be the best help. In many cases, speaking to the landlord about your concern with the behavior or condition of the room may be enough to convince him or her to address the matter. If that does not work, you can also write to them and put them on notice. If your landlord did not make necessary repairs to the room, you should always contact him or her to address the problem and give them an opportunity to do so. You can help your case of going to court by notifying them in writing so there is a record of your grievance.
Small Claims Court
If you still have not been able to resolve your concern with your landlord, you can take them to small claims court and try to recover some or all of the money you are owed. According to the Colorado Judicial Branch, small claims court "is a division of the district court where individuals may pursue quick, inexpensive legal remedies for issues, such as breach of contract, negligence, and recovery of personal property, value of personal services, and wrongful taking of rented or leased property." If you are unable to recover your money or reach a resolution with your landlord , you can usually bring your case to small claims court. Typically, you don’t need a lawyer. Small Courts in Colorado have jurisdiction (authority) to hear claims of up to $7,500, but taking a case to court can be costly and time-consuming as well, so it should be your last resort after trying to resolve the matter directly with whoever you have a dispute with. In Denver, small claims court is located at 720 S. 16th St., 4th Floor, Denver, CO 80202. To contact the clerk, call (720) 865-7840 or visit their website to learn more about fees due, times to file, or to glean more about the process.
Mediation or Arbitration
If you believe you can come to a resolution with your landlord, but they are still not cooperative, you can agree to mediation and have a third party act as a mediator to help you negotiate a resolution. One of the benefits of mediation is that it is a confidential process. You may, however, have to pay for the mediation service you use. This is one of the drawbacks to mediation, is that you each have to agree to the agreement reached during mediation. If you can’t reach an agreement, you may need to go to small claims court. For more information on who to call in the Denver area to find a mediator, call 303-825-0585.