Since landlords and tenants occupy the same space, landlords must discuss boundaries and expectations at the beginning of the tenancy. For example, a landlord can specify when they can legally enter the tenant`s room, what house rules apply and how they are enforced, how guests are treated, and more. With a lease, landlords can declare that they are renting a room rather than an entire unit. With a lease for rental spaces, landlords can be sure that tenants understand their rights and obligations, including rental rates, when they are due, which areas of the property they can access, and more. Even if you don`t have a written contract with your tenant, there is a rental agreement. Pursuant to section 54(2) of the Property Law Act 1925, a tenancy exists as soon as a tenant begins to pay the rent.