Before creating your roommate contract, it`s important for both of you to understand the difference between a lease and a colocation agreement. A lease is an agreement between the lessor and the tenants, while the colocation contract is a legal document that binds individual tenants who reconcile several conditions of cohabitation. If the applicant is approved, it`s time to create a colocation (download) agreement. This must be done with all roommates (if more than two (2) in total). It is customary that when signing the lease and before moving in, the new roommate pays the deposit (if applicable) and the first (1st) month`s rent. This could save you and all roommates from many headaches if the person tries to get free housing in the short term. Before proceeding with an agreement, you need to understand the purpose of the colocation agreement.