Leases are legally binding contracts that explain the obligations and rights of the tenant and lessor. Even if you only rent a room in your home to a friend or family member, you`ll need a lease for legal protection if you have problems with your tenants. Use a monthly lease if you don`t want to commit to renting your property for a full year or more, but still need to protect your rights. Using a monthly lease allows you (and your tenant) to be flexible. To rent a room, both parties sign the contract and the landlord collects a deposit from the tenant before handing over the keys Almost as important as the monthly rent are the incidental fees and services included in the rental agreement.