To rent out a room in your apartment, you need written permission from your landlord before anything else, a sublease that doesn’t conflict with your master lease, a subtenant chosen without violating fair housing law, and a plan for the deposit, insurance, and taxes that come with becoming a sublessor. Skipping the landlord step is the fastest way to lose your own apartment, and the rest of the work protects you from financial and legal exposure once a stranger is living in your space.
Start With Your Lease
Your existing lease controls whether you can sublet at all. Most leases either prohibit subletting outright or require prior written approval from the landlord. If your lease says nothing about subletting, that silence does not automatically grant permission in many jurisdictions, so check local law before assuming you’re free to proceed.
Contact your landlord in writing and explain what you want to do. Many will agree but attach conditions: approving the subtenant personally, requiring proof of renter’s insurance, or adding a subletting addendum to the master lease. Keep whatever approval you receive in writing, whether that’s an email, a signed letter, or a formal amendment. Moving someone in without authorization is a lease violation that can trigger eviction, no matter how reliably you’ve been paying.
Occupancy, Safety, and Lead Disclosure
Landlord approval doesn’t override local building codes. Most jurisdictions adopt some form of the International Residential Code, which sets minimum bedroom size, dimension, and egress requirements, and local occupancy standards often cap density at roughly two people per bedroom. A room that functions as a home office may not legally qualify as a bedroom if it lacks a closet, an egress window, or sufficient floor space.
If your building was built before 1978, federal law requires you to disclose the possible presence of lead-based paint before the subtenant signs anything. Under 42 U.S.C. ยง 4852d, you must give the subtenant the EPA’s lead hazard information pamphlet, share any reports or records about lead paint in the unit, and include a signed Lead Warning Statement in the sublease.1Office of the Law Revision Counsel. 42 USC 4852d – Disclosure of Information Concerning Lead Upon Transfer of Residential Property The EPA requires anyone acting in a landlord capacity to keep signed copies of these disclosures for three years after the lease begins.2US EPA. Real Estate Disclosures About Potential Lead Hazards
Setting Rent and the Security Deposit
There’s no universal formula for pricing a room. A common starting point is the percentage of the apartment’s total square footage the private room represents, applied to the full monthly rent. Adjust downward if the room is smaller than the others or lacks a private bathroom. Decide upfront whether a share of utilities is included in a flat monthly amount or split separately based on actual bills, and spell out who pays for electricity, internet, and streaming subscriptions.
Security deposit limits vary by state, with most capping collection at one to two months’ rent. Several states also require you to hold the deposit in a separate account and pay interest on it. These rules apply to you as the sublessor, not just to traditional landlords. Collect the deposit before handing over keys, and document the exact amount in the sublease.
What the Written Sublease Should Cover
A handshake deal is legally fragile. Put everything in a written sublease that both parties sign. At a minimum, it should include:
- Names and contact information for both parties
- A property description identifying the specific room and which common areas the subtenant may use
- Exact start and end dates
- Rent amount, due date, and payment method
- Security deposit amount and conditions for deductions or return
- Utility responsibilities
- House rules on guests, quiet hours, cleaning, and shared space
- Termination provisions, including required notice
The sublease cannot conflict with the master lease. If your landlord prohibits pets or smoking, those restrictions pass through to the subtenant. Some landlords want to review and approve the sublease before signatures. Local housing clinics and legal aid offices often provide template forms that comply with your jurisdiction’s requirements.
Advertising and Choosing a Subtenant Without Violating Fair Housing
The federal Fair Housing Act prohibits housing discrimination based on seven protected classes: race, color, religion, sex, national origin, familial status, and disability.3Office of the Law Revision Counsel. 42 USC 3604 – Discrimination in the Sale or Rental of Housing and Other Prohibited Practices These protections apply broadly to anyone offering housing, including tenants who sublet.
You may have heard of the “Mrs. Murphy” exemption, which carves out owner-occupied buildings with four or fewer units from certain Fair Housing Act requirements. It generally doesn’t help a tenant subletting a room because it applies to owners who live on the property, not to tenants.4Office of the Law Revision Counsel. 42 USC Ch. 45 – Fair Housing – Section 3603 Even where the exemption does apply, the ban on discriminatory advertising still holds. You cannot post a listing stating a preference based on race, religion, sex, or any other protected class.
Courts have recognized that choosing a roommate for your own home involves personal association rights different from renting a separate unit you don’t occupy. In practice, your private in-person selection has more legal latitude than your advertisement does. Keep listings neutral and focused on move-in date, budget, and lifestyle compatibility. Many states and cities add protections for source of income, sexual orientation, and immigration status, so check your local fair housing office before posting.
Screening Applicants
A bad roommate can cost thousands in unpaid rent, property damage, or an eviction fight. Ask for proof of income and look for monthly earnings of at least two-and-a-half to three times the rent. Request references from previous landlords and actually call them. A five-minute phone call can save months of trouble.
A background and credit check gives you a clearer picture of payment history and financial reliability. Third-party screening services run them for a fee, typically $30 to $75 per person, which you can usually pass to the applicant. Some states cap screening fees, so check local rules before collecting one.
Close the Insurance Gap
Your renter’s insurance almost certainly does not cover your subtenant’s belongings or liability. If the subtenant causes a kitchen fire or a guest slips in the bathroom, your policy will not respond to claims involving them. Require the subtenant to carry their own renter’s insurance before moving in, and write that requirement into the sublease. A basic renter’s policy runs about $15 to $30 per month and covers personal property, liability, and additional living expenses if the unit becomes uninhabitable.
Call your own insurer and tell them you’re subletting a room. Some carriers want notice, and failing to disclose a subtenant can jeopardize your own coverage if you later file a claim.
Document the Move-In
Collect the first month’s rent and the full security deposit before handing over keys. Use a traceable payment method; electronic transfers or cashier’s checks create a record. Cash without a signed receipt invites disputes.
Before the subtenant unpacks, walk through the room and shared spaces together and document the condition of everything. Photograph scratches, stains, scuff marks, and existing damage. Record it in a dated condition report and have both parties sign. That document is your primary evidence if there’s a disagreement about damage at move-out. Without it, you’ll struggle to justify deposit deductions, and the subtenant will struggle to prove they didn’t cause damage that was already there.
Give the subtenant everything they need to actually live in the unit: entry codes, mailbox keys, parking information, laundry access, building rules, and emergency contacts.
Reporting the Rent on Your Taxes
Every dollar of rent your subtenant pays you is taxable income, with no minimum threshold. The IRS requires you to report room rental income on Schedule E, even if you’re a tenant rather than the property owner.5Internal Revenue Service. Instructions for Schedule E (Supplemental Income and Loss) If the IRS later discovers unreported rental income, it can assess back taxes, penalties, and interest.
You can deduct ordinary and necessary expenses against that income. For a one-room sublet, deductible expenses include a proportional share of the rent you pay your landlord, a proportional share of utilities, advertising costs for finding the subtenant, and screening fees.6Internal Revenue Service. Tax Guide for Small Business (For Individuals Who Use Schedule C) The allocation is based on how much of the apartment the subtenant uses. If they occupy one of three equally sized bedrooms plus shared common areas, roughly a third of your housing costs may be deductible. You cannot deduct the value of your own time managing the arrangement or any capital improvements.
The IRS has a narrow exception for renting an entire dwelling fewer than 15 days a year, but it does not apply to a subtenant paying monthly rent.7Internal Revenue Service. Topic No. 415, Renting Residential and Vacation Property
Ending the Sublease and Returning the Deposit
A fixed-term sublease expires on its end date, though it’s courteous to confirm move-out timing a few weeks ahead. A month-to-month arrangement ends when one party gives written notice, with the required period set by state law, typically 15 to 30 days.
If the subtenant stops paying or violates the sublease, you cannot change the locks, shut off utilities, or remove their belongings. Self-help evictions are illegal in virtually every state, even when the subtenant is clearly in the wrong. You must follow your state’s formal eviction process: written notice, a court filing, and a judge’s order before anyone can be physically removed. The process can take weeks or months, which is another reason screening matters.
Once the subtenant moves out, most states give you a limited window to return the deposit, typically 14 to 30 days, though some allow up to 60. If you’re withholding any portion for unpaid rent or damage beyond normal wear and tear, you generally must provide an itemized written statement for each deduction. The move-in condition report is what makes those deductions defensible. Missing the deadline or failing to itemize can trigger statutory penalties that in some states exceed the deposit itself.