Resident Rental Agreements: 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.

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Monthly Fees

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

1. Rent
2. Utility fees
3. Trash pick-up fees
4. Parking fees
5. Cable, internet or 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 rental agreement. If there is a fee that must be paid for residency, it must be included in the resident rental agreement.

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Payment Terms

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

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Sliding Fee Scales

An organization can use sliding fee scales for resident rent payments. These are based on resident income and other factors. The sliding fee scale needs to be determined using clear written criteria to make it easy for residents and others to predict how much is due each pay period and how such amounts are calculated. The sliding fee scale also needs to apply to all residents equally. Increases in rent payments cannot be used as a way to place time limits on resident length of stay.

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