While there are benefits to living solo, having roommates can be a lot of fun – especially when you already have an established friendship. There’s truly nothing better than coming home at the end of the workday and having someone to talk to over a beer or glass of wine!
In addition to the social benefits, living with roommates is a great way to save money. However, it can be challenging to know how to split rent, utilities, and other costs associated with an apartment. Should someone pay more? Should someone pay less? Should everything be split down the middle?
In this guide, we’ll dive into how to fairly split rent with your roommate. We’ll explore various factors that could impact the rent split including room size, pets, budgets, and shared spaces.
This guide might also be helpful for couples determining how to split housing expenses fairly without negatively impacting their relationship.
Who Should Pay More?
The Roommate Who Owns a Pet
Most landlords charge a monthly fee for a pet to live in a house or apartment. If that’s the case, the roommate who owns the pet should be responsible for all associated fees.
If a couple owns the pet together, they should discuss how they want to split the fees (or they might decide to split the fees down the middle).
If one roommate owns multiple pets, it might be necessary for them to pay more of the rent. Alternatively, they might offer to put more money down on the security deposit than the roommates, as pets can bring extra wear and tear to an apartment.
The Roommate with a Larger Room
Before determining how to split rent, measure the square footage of each bedroom. The roommate with the largest room should pay the most, followed by those in the smaller rooms.
The Roommate with More Amenities in Their Room
Houses and apartments are often comprised of master bedrooms with ensuite baths as well as smaller bedrooms. If one room has more amenities than the other rooms, that roommate’s rent should be higher.
For example, if a room comes with an ensuite bath, walk-in closet, fireplace, or other amenities, it is typically fair to adjust the rent accordingly.
The Roommate Who Uses the Common Areas Much More
If one roommate uses the common areas considerably more than the other roommate, it might be necessary for them to pay more.
For example, a roommate might enjoy hosting dinner parties frequently and spend several hours in the kitchen preparing. Or perhaps they work from home and spend most of their day using the dining area/living room as their workspace. If this is the case, consider adjusting the rent accordingly.
Other Ways to Split Rent
Income-Based Split
The income-based split typically works well for couples but might be a bit awkward for friends/roommates.
If you’re comfortable disclosing your salary, you and your roommates can have an honest conversation about how much money you make and how much you’re comfortable paying in rent.
If you find a place where the room sizes are the same, the person who has a higher salary might opt to pay more for the total rent to accommodate the roommate with a reduced income.
Usage-Based Split
The usage-based split works well for roommates who spend very different amounts of time in the apartment.
For example, let’s say one roommate works from home every day, while the other roommate has a job that involves several days of travel throughout the week. The roommate who works from home might opt to pay more since they’re using the space far more than the roommate who spends most days on the road.
If both roommates agree to split the rent evenly, the roommate who works from home might offer to cover utilities (or contribute a higher amount to utility bills). This brings us to our next idea:
Utility-Based Split
If one roommate has an air conditioner in their room but the other does not, they might opt to pay more for the electricity bill to cover costs.
This also applies to roommates who tend to have guests in town frequently or who have a partner who stays in the apartment for extended periods.
It might also be worthwhile to have a conversation before signing the lease and agreeing on an appropriate amount of time that guests can stay (for example: 3 nights per month).
The Even Split:
This is the simplest method, where the rent is divided equally among all roommates. This option works best when everyone has similar incomes, living spaces, and use of the common areas.
It also could work well for couples who want to reduce complications in their living situation and prefer to split their living expenses 50/50.
Additional Considerations
Consider Using a Written Agreement
It might be helpful to sit down with your roommate before moving in together to discuss your living styles, expectations, and financial contributions.
From there, you can draft an agreement together that outlines what you both agree to pay in rent, how you will split utilities, pet bills, etc. You can also include the guest policy in the document, specifying the number of nights guests can stay each month.
After you have both agreed to everything outlined in the document, print it out and sign it. It’s a good idea to review the rent and the agreement periodically to ensure it remains fair.
Final Thoughts
Remember, open communication and a willingness to compromise are essential. Here are some additional tips to keep in mind:
- Be Transparent: Clearly communicate your financial situation and expectations.
- Use a Rent Calculator: There are online tools to help calculate rent splits based on the various methods outlined above.
- Be Flexible: Be open to finding a solution that works well for everyone.
If you’re in the market for a new apartment, Draper and Kramer’s luxury rental properties offer tenants apartments with plenty of space to share with roommates. Contact us to learn more about our luxury homes.
