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In this video, Matthew discusses creating a room rental agreement and recommends using legal templates. He instructs viewers to click a link for real estate forms, then select the option for tenants. After finding the room rental agreement, he guides viewers to choose a state and identify the principal tenant. Matthew then prompts the user to select the type of lease agreement, opting for a standard lease. He encourages participants to enter necessary details, including the principal tenant's name, the names of any additional tenants, and the monthly rent amount.