While we typically think about rental liability in terms of an individual living in his/her own apartment or house, rental liability may actually take several different forms. For example, renting a room within someone else’s private dwelling may be a form of rental liability.  This would apply when an individual lives in the same dwelling with the landlord, but maintains a “separate household” from the landlord. A separate household functions as a separate economic unit, and more than one economic unit may exist in a single dwelling. If the individual and the landlord do not function as separate economic units, the individual is not in a separate household and cannot have rental liability.

A flat fee for room and board may be another form of rental liability. It is a variation of separate room rental within a private dwelling. With flat fee, the individual maintains a separate household from the landlord and pays a flat rate for food and shelter.