Legal Question in Real Estate Law in California

Re: Owner occupied/roomate agreement

Aside from the homeowners' insurance issue which is of overriding importance, your other problem is they aren't going to do any work, they are going to sit around drinking beer and watching TV, and unless your agreement us very specific about what work they are going to do, and how you will measure the results, your arrangement is doomed to failure no matter who writes the contract.

Re: Owner occupied/roomate agreement

Under the circumstances you describe, the two nonowner-occumants are likely to be lodgers, rather than tenants. I assume you are remaining pretty much in control of the common areas, the kitchen, etc., keeping keys, paying the utilities, and so on. These are some hallmarks of an owner-lodger relationship rather than a landlord-tenant arrangement. Lodgers are not tenants. They are mere licensees, and have substantially lesser rights. Among other things, they are not subject to the notice and formal eviction processes and can generally be told to leave at any time on short (but reasonable) notice.

This being the case, I'd suggest a combined work-and-lodging agreement in writing, detailing the work to be done, that their "pay" is free lodging, that they are not tenants, and that the work engagement and the lodgings can be terminated at any time when in your opinion the work is not satisfactory.

Don't forget the insurance!