Lease-by-room

Lease-by-room, also known as individual leasing, is an arrangement whereby a tenant and their roommates pay rent for their own rooms instead of each tenant being equally liable for the rent for the whole apartment. Typically lease-by-room leases are multi-room apartments or townhomes with shared bathrooms and living rooms. What distinguishes lease-by-room leases from joint leases is that tenants take on a lower financial risk, as they will not have to cover if their roommates do not pay rent and they cannot be evicted if their roommates fall behind on payments.