It's not so far-fetched to have roommates these days.
Living with roommates is a wise approach to reduce expenses and lower the cost of renting. However, dividing the rent can be a challenging task if you do not know the best way to do it. Does someone need to pay more? Does someone deserve a lower rate? Do you need to divide everything equally?
Having a clear strategy makes it easier to answer these questions and divide the rent fairly. Continue reading as we walk you through doable strategies in this guide for equitably splitting rent, keeping your finances and your relationship with your roommates intact.
Should Roommates Split Rent Equally?
Roommates do not need to share rent equally. It depends on the situation, such as the size of each bedroom, accessibility to certain features or rooms, and ease of access. The easiest and most common way for roommates to pay rent is to split the rent evenly; however, when one of the roommates has a feature that distinguishes their room/accessibility from the other roommates, it gives potential for inequality.
There are different methods that landlords can use to split rent fairly among roommates. Splitting the rent evenly is obviously the easiest way to rent bedrooms when all the rooms are the same size, and the roommates have equal access to all of the shared living features. Sharing rent equally is particularly simple if all roommates have approximately the same bedroom sizes, access to the same bathroom, living room, and kitchen.
If one roommate has their own bathroom, that is an additional room relative to the other roommates, thus complicating the renting situation. To be proactive about the concept of fairness, it is advisable to check in with the other roommates to ensure they still consider the rent fair.
What Expenses are Normally Divided Between Roommates?
Roommates often split many household costs, which, if not handled appropriately, can easily become points of contention. Rent, utilities, groceries, and household supplies are examples of costs that are frequently split. Think about which expenses are necessary and which are not when choosing which bills to divide. For instance, although some roommates may value cable or streaming services, others may not be willing to share the cost of these services. Discuss with a Texas rental manager your concerns if the tenants have significantly different incomes.
When determining how to divide costs with roommates, rent and utilities, including gas, electricity, water, and internet, are the primary shared living expenses to consider. Along with common furniture and appliances, such as a couch, TV, and refrigerator, there are also groceries and household essentials like toilet paper and cleaning supplies.
Key Considerations when Splitting Rent
1. Regular Reevaluation
Regularly re-evaluating rent distribution is an important consideration when determining how to share rent between roommates, as all living situations, financial situations, and the amount of time spent in shared spaces can change. Regularly re-evaluating the distribution would ensure that it is both transparent and fair, and also prevent any potential misunderstandings and conflicts.
It is ideal to reassess a rent split every time a lease is renewed, when someone moves in, or when someone moves out, for clear communication, equitable sharing of costs, and establishing an appropriate rent distribution. Additional consideration will be necessary when changing the distribution based on utility usage. Drafting a roommate agreement or simply having a conversation to address any adjustments to the distribution, at the very least, will ensure consideration for harmony and fairness.
2. Other Factors that Impact Fairness
Multiple things can contribute to fairness when dividing rent with roommates, including the size of the rooms and any exclusive amenities. Bedrooms differ in size and square footage, and this can play a role when it comes time to decide how to split rent with your roommates. If you plan to divide rent based on the size of your bedrooms, the person with the largest room will pay the highest rent, and similarly, the person with the smallest room will pay the least.
Alternatively, some apartments have bedrooms with additional amenities, such as an attached bathroom, while others have features of value, such as more windows, natural light, or a distance from the main door. Therefore, it is important for you and your roommates to discuss things that are important to each of you and what, therefore, may or may not be considered fair for each of you. For example, it may be fair for the person with the en-suite bath to pay a greater amount of rent than other roommates who will have to share bathrooms.
There will be differences in the amount of money that each roommate has. The best course of action in this case is to find out about your housemates' backgrounds and monthly income. Your roommates won't be excluded from the group simply because they can't afford to pay as much as the others if you divide the rent according to income.
Ultimately, these factors rarely exist alone and are often used in combination to divide the rent evenly among roommates based on their use, financial situation, and preferences.
Final Thoughts
Sharing a space with roommates can significantly reduce rent, but dividing rent equitably requires meticulous preparation. Everyone can feel good about their renting position if they know how to divide rent equitably, whether it be by amenities, income, or room size.
Keep in mind that flexibility and frequent financial check-ins will enable your household to adjust to shifting conditions. With the tips in this guide, you can build a more peaceful and financially sustainable shared house, whether you're preparing to move in with new roommates or want to enhance your current living arrangement.