How to Split Rent With Roommates
So you've decided to move into your new home with friends, and of course everyone is super excited, but have you spoke about how the rent will be split? Discussing money with friends can be a little awkward and you have to make sure that the decisions being made are fair for everyone involved. It is important to understand that rent must be paid in full to the landlord or everyone on the lease faces the possibility of eviction, so being sure everyone understands their responsibilities is a necessity. That's why before you decide on a number, we thought it important you read these tips on how to split rent fairly.
Room Size
Bedrooms generally vary by size so measure out the square footage. This way the person with the largest room will pay the highest rent. Dividing rent based on room size is the best way to make sure that everyone gets exactly what they are paying for. Of course, that is not to say that room size is the only thing you should base your decision on. Things such as household responsibilities, or amenities can also play a role.
Amenities
Some roommates may be specific about having an attached bathroom. You may decide they will have to pay more as they won't have to share a bathroom like the others. Different rooms may have different qualities such as additional storage so it's important for you to discuss as a group which features are a priority for whom.
Split by Income
Not everyone has the same income or the same spending power, so it's easiest to have an honest conversation about each person's budget to determine which room size they can afford. Knowing and understanding the background of your roommates will keep things fair and prevent anyone from being left out if they can't afford it.
Split it Evenly
This is the easiest way to split rent amongst roommates. This way everyone pays an equal amount regardless of any factors. While this is the most mathematical and convenient way to divide rent it might stir up problems in the future. So before feeling tempted to choose this option make sure all your roommates are all on the same page with this option.
Based on Responsibilities
You can also choose to split costs based on responsibilities. So if one person chooses to get the groceries for the house, this will reduce their rent payment to balance out costs. Similarly someone can choose to pay the utility bills. Segregating responsibilities like this eliminates the need to chase down someone to pay their share of the particular bill.
Additional Tips
Ignore your phone calculator and check out these apps that make the splitting of finances so much easier. These apps calculate how much you will have to pay based on the earnings and spendings of your group. This makes sure everyone's spending totals are the same to keep things fair and consistent.
Splitwise Rent, Good Calculators are two popular examples that make life amongst roommates and groups much easier.
Determine Payment Methods
Give one tenant the responsibility of transferring the rent to your landlord every month. This means that everyone else will have to transfer their cut of the rent to the lead tenant on time. Transfer your money through apps like Paypal and Venmo or directly pay it in cash.
A Roommate Agreement
Once you've signed the lease and everything is finalized amongst the group, take some time out to create a roommate agreement. This agreement should highlight each roommate's rent and responsibilities, who gets which room as well as what to do in case someone's financial situation changes. This solid written format will prevent unnecessary conflicts amongst roommates anytime in the future.
Overall, having a clear communication, understanding and agreement is what will create a harmonious living experience with your roommates.
