So you’ve decided to move into your new home with friends, and of course, everyone is super excited, but have you spoken about how the rent will be split? Discussing money with friends can be a little awkward, and you have to make sure that your decisions involve everyone. It is important to understand that rent must be paid in full to the landlord or everyone. Everyone faces the possibility of eviction on the lease, so ensuring everyone understands their responsibilities is necessary. That’s why, before you decide on a number, we thought you must read these tips on how to split rent fairly.

Room Size

Bedrooms generally vary by size, so measure 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 ensure everyone gets exactly what they are paying for. Of course, that is not to say that room size is the only thing on which you should base your decision. 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 must pay more because they won’t have to share a bathroom like the others. Different rooms may have different qualities, such as additional storage, so you need to discuss which features are a priority for whom.

Split by Income

Not everyone has the same income or 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 your roommates’ backgrounds 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 among roommates. Everyone pays an equal amount regardless of any factors. While this is the most mathematical and convenient way to divide rent, it might cause problems in the future. So, before being tempted to choose this option, ensure all your roommates are on the same page.

Based on Responsibilities

You can also choose to split costs based on responsibilities. For example, if one person decides to buy a house, they will reduce their rent payment to balance the 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 simplify the splitting of finances. These apps calculate how much you will pay based on your group’s earnings and spending. This ensures that spending totals are the same to keep things fair and consistent.

Splitwise Rent and Good Calculators are popular examples that make life easier for roommates and groups. Payment Methods

Give one tenant the responsibility of transferring the rent to your landlord monthly. Everyone else must transfer their rent cut to the lead tenant on time. You can transfer money through apps like PayPal and Venmo or pay it in cash.

A Roommate Agreement

Once you’ve signed the lease and everything is finalized among the group, take some time to create a roommate agreement. This agreement should highlight each roommate’s rent and responsibilities, who gets which room, and what to do if someone’s financial situation changes. This solidly written format will prevent unnecessary conflicts among roommates in the future.

Clear communication, understanding, and agreement create a harmonious living experience with your roommates.