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In this video tutorial, Matthew explains how to create a room rental agreement using legal templates. He starts by directing viewers to a link beneath the video, which leads to real estate forms. He navigates to the tenant section to find the room rental agreement. Matthew randomly selects Texas as the state for the document creation. He then guides viewers through the steps, including choosing the type of lease agreement, which he opts to be standard, and entering details like the principal tenant's name, the names of additional tenants, and the monthly rent amount.