Step 2 – Sign the agreement and give it to your main tenant for signature. Keep a copy to yourself. If you rent part of a house or unit to another tenant – and that tenant has a written lease with the owner of the premises – then they are your primary tenant. Common Law can only apply to a room rental agreement with shared access to the facilities. It cannot apply to an agreement to lease an entire piece of land (i.e. an entire house or apartment). There is no increased legal flexibility by not signing an agreement, as the right to residential ownership cannot be cancelled and also covers oral agreements, so it is in your interest to read and understand the agreement. The housing rental right applies automatically if your contract applies to an entire building (i.e. an entire house or apartment). Landlords and tenants can agree that the right to rent accommodation applies when the contract provides for a part of a piece of land (i.e. a rental of space) with access to community facilities. For the rental laws to apply to your contract, the tenant must pay the rent in exchange for the right to use the premises.

If the premises are made available free of charge, the laws on residential tenancy do not apply. A common law agreement is more flexible than a housing rental agreement because roommates can agree to all the terms. However, because each term must be negotiated and agreed, common law agreements are often not as comprehensive or defined as a housing rental agreement.