How to Split Rent in Share Houses
They say sharing is caring, but living in a share house can be far from pleasant if the rules about splitting expenses aren’t well established.
For starters, before you move in set ground rules, so everyone knows what is expected from them and put these rules in writing, so there’s no ‘he said, she said’.
The first order of business is deciding how much rent each person should pay. If you’re setting up a house with mates, you can choose to split the house in different ways to make it even. But most share homes are established or run by one person generally speaking. And the easier way to do it then is by making each room a specific amount, depending on the prices in the area.
A bedroom with an ensuite and walk-in robe should cost more than a bedroom with a shared bathroom, for example. Other perks, like a garage spot, should be reflected in the room’s rent too, especially if there is only one spot. You need to work out who has what and what each bit is worth. In some scenarios, though, it could be an even split: one person gets the regular bedroom and the garage, while another gets the master with the ensuite.
When it comes to deciding how to split rent between housemates, have each housemate jot down their thoughts on the price of each room. This can help you start the conversation. If the prices match up, then it’s a very simple process; if not, then at least you have some idea of what to expect from the ensuing negotiations.
Split rent based on bedroom features - An ensuite and walk-in wardrobe add luxury and value to a room. Housemates should take into accounts these added features when discussing how much a room should cost. Balconies and parking spaces should also be considered.
Calculate rent on room size - It’s hard to argue against data. So, for those who are good at maths, figuring out the cost per square metre could be an appealing option. This method will help in share houses with a granny flat or a less traditional floor plan. However, basing the rent of a bedroom on size doesn’t take into account extra amenities, or access to other key areas of the house.
Consider charging more for couples - Even though a couple shares a bedroom, they are both using the common areas of the house, such as the kitchen and living room, which is important to remember when splitting rent. Overall, having a couple in a share house can be appealing, because it often makes rent cheaper. Experts recommend charging couples between 15 per cent and 40 per cent more for a room.
Sharing the costs of utility bills When it comes to splitting bills, an even split is often the best approach, as it can be tricky to track individual usage. You should interview potential housemates about their usage and habits before moving in together. This way you can ensure that you’re living with like-minded people and that you’re on the same page when it comes to electricity usage and payments. If you end up in a situation where one person is using electricity non-stop, you need to come to an agreement.
Sharing food costs between housemates Food costs can also be shared. The best arrangement will depend on your housemates’ preferences. In some share homes, it works well when everyone chips in for food and shopping. Or you can have a kitty for communal expenses, such as milk and bread, but everyone buys everything else themselves. If you are living with someone who is super strict about the way they eat, [who is] on a special diet or fanatical about money, it’s easier for everyone to do it themselves and not bother splitting the groceries.
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The above information has been sourced from Realestate.com.au. To read the full article CLICK HERE.