Resident Rent/Lease Agreement: Clarity of Financial Expectations

Resident Rent-Lease Agreement in Recovery Housing > Resident Rent/Lease Agreement: Clarity of Financial Expectations


Security Deposits

Many recovery homes do not charge security deposits.  This is because people in early recovery in need of a recovery housing environment may not have the resources to pay such a deposit.  However, you are permitted to charge security deposits. If you choose to do so, you must include the amount of the deposit, and the terms and expectations for the return of the deposit.

Monthly Fees

All financial terms need to be included in your resident agreement.  Consider the following items that residents will be charged for when drafting your resident agreement:

  1. Rent
  2. Utility Fees
  3. Trash Pick up fees
  4. Parking Fees
  5. Cable/Internet/Phone charges

It is not permitted to include fees in other policies, such as your code of conduct, and then NOT include those fees in the resident agreement.  If there is a fee that must be paid for residency, then it must be included in the resident agreement.

Payment Terms

Your agreement needs to be clear about when payments are due and how they should pay their rent.  This can help you eliminate any potential confusion about due dates.

Sliding Fees Scales

As mentioned previously, an organization can use sliding fee scales for resident rent payments.  These are situations where resident rent payments are based on resident income and other factors, but the sliding fee scale needs to be based on clear written criteria that are easy for residents and others to predict how much is due each pay period and how such amounts are calculated.  And the sliding fee scale needs to apply to all residents equally. And increases in rent payments cannot be used as a way of placing time limits on resident length of stay.

Be sure to seek legal guidance and advice on how to create your sliding fee scale policy to ensure it meets your needs.