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Co-tenancy agreement

A co-tenancy agreement is the internal contract between roommates who are all on the same lease. Because every signer of a US lease is jointly and severally liable to the landlord, the co-tenancy agreement is what actually divides rent, deposit, utilities, chores and exit rules between roommates — and provides the written proof a court needs if the relationship breaks down.

Core terms

Names of every co-tenant and the property address.
Each roommate's share of monthly rent (by percentage or dollar amount).
Each roommate's contribution to the security deposit and how it will be returned.
Utility split — flat share or by usage.
Bedroom assignment and access to shared spaces.
House rules — guests, quiet hours, cleaning, pets.
Exit rules — notice, finding a replacement, deposit refund.

Joint and several liability

Reminder. Every co-tenant who signs the master lease is fully liable to the landlord for 100% of the rent. The co-tenancy agreement divides the burden between roommates but does not reduce anyone's obligation to the landlord.

Sample clauses

Rent split. Each co-tenant shall pay an equal share of the monthly rent on or before the 1st of each month, into the shared account at [bank].
Deposit. Each co-tenant contributed $______ to the security deposit. At move-out the deposit shall be refunded in proportion to each co-tenant's contribution, less that co-tenant's share of any damage they caused.
Replacement. A co-tenant who wishes to leave before the lease end shall give 30 days' written notice and shall find a replacement acceptable to the other co-tenants and the landlord.
Dispute resolution. Disputes between co-tenants shall first be discussed at a house meeting; unresolved matters shall go to small-claims court in the county of the Premises.

Who keeps the deposit when one leaves?

Approach	How it works
Replacement pays out	Incoming roommate pays the departing roommate their share of the deposit
Held until move-out	Landlord keeps the full deposit; refund is split when the last person leaves
Partial return	Landlord returns the departing share with all roommates' written consent (rare)

India practice

Flat-mate arrangements in Bengaluru, Hyderabad and Mumbai commonly have a single primary tenant on the leave-and-license agreement and the other flat-mates as "permitted occupants," with an internal sharing note. A formal co-tenancy agreement with all flat-mates named on the main lease is rarer but cleaner — and avoids the primary tenant bearing all the legal risk.

FAQs

What is a co-tenancy agreement?

A co-tenancy agreement is a contract between two or more people who sign the same lease as co-tenants, covering how rent, utilities, deposit and chores will be shared between them. It sits on top of the master lease and is enforceable among the roommates.

What does joint and several liability mean?

It means each co-tenant is individually responsible for the full amount of rent and damages, not just their share. If one roommate skips, the landlord can collect everything from the remaining roommates, who must then pursue the absentee privately.

Is a co-tenancy agreement legally binding on the landlord?

No — the co-tenancy agreement binds only the roommates. The landlord's rights come from the master lease, where every co-tenant is still jointly liable. Use the co-tenancy agreement as an internal contract between roommates.