Considerations
Living together and sharing expenses can be very helpful from a financial standpoint, but sometimes friction occurs — even among the best of friends. Some people are meticulous with record keeping and always plan to have enough money available to pay the bills, while others have difficulty with managing money and paying bills on time. The best way to ensure an equitable relationship is to develop a plan for financial fairness. Read on to learn a few ideas to make sure that both you and your roommate have a good experience.
Divide Responsibility Equally
A good plan is for each person to take responsibility for one or two expenses, with the goal being that each roommate takes responsibility for the same dollar amount each month. For example, one roommate could take responsibility for internet, cable, and electricity, while the other roommate could take responsibility for heat and water. Because some months may have higher costs than others, set a schedule for totaling bills and reimbursing the roommate who spent more money.
You may also want to check with your landlord about submitting payments; some landlords might allow each roommate to pay one half of the rent. One benefit to having some of the bills in your name is that you may be able to build your credit score.
Be Honest With Your Landlord
If there is a roommate change, be sure to get the lease updated. Otherwise, the original occupant has total legal responsibility for the lease. Make sure the landlord is aware of any changes. Remember, you may need your landlord’s recommendation for your next rental, so be responsible.
Stick With a Cellphone
Since most people have a cell phone, a landline may be an unnecessary expense, and it could just be another potential source of conflict.
Avoid Joint Purchases
Rather than purchasing large items together, you might want to consider individual purchases. For example, if you need a sofa and television, one roommate could purchase the sofa, while the other could purchase the television. Purchasing items in this manner makes it clear as to who owns what. In the event of a roommate “breakup,” life is much easier if you don’t have to determine who gets to keep which piece of jointly owned furniture.
Buy Your Own Food
Unless you are making meals together, it’s best for each roommate to maintain his or her own supply of staples and respect the food of the other roommate.
If you and your roommate mutually agree on each person’s financial roles and responsibilities at the beginning of the living arrangement, the chance of a financial misunderstanding will be greatly reduced.
Additional Resources
Set up an account with the AAMC Financial Wellness program to review additional articles about Roommates and Money and Renting an Apartment.