Simply put, a room rental agreement is a legally binding contract between the owner of the room and the person who will rent it. A simple room rental agreement can be made by the principal tenant to ensure a good relationship between himself and the person who will be renting. For example, some properties will have an independent contractor do repair and maintenance in the building. You’ll need to decide what works best for your needs and make sure that information is included in the contract. With this information in hand, you’ll be adequately prepared to execute a commercial lease. However, there are other things that need to go into a business lease. Be sure your lease or rental agreement complies with all relevant laws including rent control ordinances, health and safety codes, occupancy rules, and antidiscrimination laws. State laws are especially key, setting security deposit limits, notice requirements for entering rental property, tenants' rights to sublet or bring in additional roommates, rules for changing or ending a tenancy, and specific disclosure requirements such as past flooding in the rental unit. Step 9 – The signature section will require the signature and printed name of each co-tenant (roommate) and the party witnessing an individual co-tenant’s signature. Rent is usually due on the 1st of the month, but feel free to change it to to another day.