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In this video tutorial, Matthew explains how to create a room rental agreement using legal templates. He encourages viewers to use the link provided to access the necessary templates. The process involves navigating to the "real estate forms" section and selecting the "room rental agreement" under the tenants' category. After choosing a random state, viewers proceed to create the document by specifying details such as the type of lease, tenant names, monthly rent amount, and security deposit. The tutorial guides users through each step to ensure they complete the agreement accurately.