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Splitting rent between rooms / people
Deusfaux
Registered User regular
Registered User regular
What do you guys find is common or think is fair in roommate situations for splitting rent? How do you decide?
I'm going to throw out a few scenarios. I want to know what you think each person should pay or would be fair, and the reasoning behind it.
Apt is $1800 in each case. Call the people A, B, C, etc. Unless stated otherwise, assume all the bedrooms are equal size.
#1a. 2 bedrooms. 2 people
#1b. 2 bedrooms different size. 2 people (how different exactly doesn't matter - give an answer to apply to most situations or assume a large or small difference)
#2. 3 bedrooms. 3 people
#3. 2 bedrooms. 3 people, 2 of them sharing 1 of the bedrooms.
I'm going to throw out a few scenarios. I want to know what you think each person should pay or would be fair, and the reasoning behind it.
Apt is $1800 in each case. Call the people A, B, C, etc. Unless stated otherwise, assume all the bedrooms are equal size.
#1a. 2 bedrooms. 2 people
#1b. 2 bedrooms different size. 2 people (how different exactly doesn't matter - give an answer to apply to most situations or assume a large or small difference)
#2. 3 bedrooms. 3 people
#3. 2 bedrooms. 3 people, 2 of them sharing 1 of the bedrooms.
Deusfaux on
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1B is dependent on room size, but if it isn't noticeably larger maybe $25 or so. If one bedroom has a bathroom attached, change it to like $75 or something.
2 is obvious again. $600 each
3 is the person in their own bedroom pays $800, the other 2 pay $550, unless the bedroom is monstrous, then maybe they each pay an additional $50 or something.
1B really just depends. Best bet is to discuss with the roommates and decide what is fair/what one person is willing to spend extra to have the larger room/private bathroom.
For 3, I've always had it split by room and then the rooms split by number of occupants, so $900, $450 and $450 There is an argument that they should pay more because there is now more people using the common area, but its never been a big deal in my housing situations. As long as come up with your rooms rent and everyone treats the common space with respect, I've never cared how many boyfriends, girlfriends or homeless buddies you cram into that bedroom.
Ooh yeah, this is a good idea. Thats what happened with me in my last share. You want the room with the balcony? Well you gotta park on the street..
My own personal preferences are as follows:
1a) 2 Bedrooms, 2 People
50:50 split
1b) 2 Bedrooms of different size, 2 People
Sum the total square footage of each room. Divide the total rent by this sum. Each person pays according to their $ per square foot.
2) 3 Bedrooms, 3 people
Each person pays 1/3 of the total rent.
3) 2 Bedrooms, 3 People (with 2 sharing 1 room)
Again, assuming both rooms are the same size, this one is much more difficult to determine. Any range from (15:15):70 to (33:33):33 is potentially acceptable to all parties.
The problem with theoretical exercises like this is that they are precisely that, theoretical. Living with multiple people in a shared space is a far more complex calculation than just square footage, rent, and number of bodies. Because everyone values different things, each living situation is different, and people are flexible in cost, there is a very wide spectrum of would would be called acceptable outcomes. Cost doesn't even have to be the determining factor - people are perfectly willing to trade things like "loading the dishwasher" for paying more rent or even "dibs on parking", so unlike what some economists might argue, this isn't a single-dimension problem.
1b: depending on how different the rooms are, one person could pay $800 and the other $1000.
3. In this one, the people sharing the room should be paying significantly less than the other person. Something like $800/$500/$500. If the room they're sharing is enormous (or the room the one guy is using alone is a closet) then they should pay a little more.
for instance, if the two people are splitting a 200 sq foot room and the solo is a 100, it should be about the same price for all but there might be a $50 increase just for the privacy of a single instead of a double. if the 2 people living together are close/dating then there is no concern.
so again, take the rent. divide it by 2 and then divide that by how many people you have living in the apartment, this is the amount that each person has to pay towards public space. then take the sq footage of the rooms and divide up the rest according to what people get out of it. (a 12x10 room is 120 sq feet, a 8x10 room is 80 sq feet. if the 2 people take the 120 sq foot room, they each get 60 sq feet which is 30% of the available room space so they pay 30% of the private space rent.)
Of course, one might argue that just because two people are deciding to share a room, it doesn't mean that the third person should have her rent cost increase. An adjustment in relative value does not necessarily equate to an adjustment in real [paid] value. Consider that the third person also "loses" some value in that there is a additional person with whom the common areas must be shared. Even should all utilities be evenly split three ways, one could argue lost opportunity cost (e.g., watching TV, doing laundry). Also, the third person could potentially just as easily find a single roommate willing to pay for the whole room. This is probably the strongest illustrative example (and argument) for "the odd man out" not paying more. "Why should I pay more just because you guys want to pay less?"
A method so tried and true there's a wikipedia article for it: http://en.wikipedia.org/wiki/divide_and_choose
I've been in situation 3 as the couple. The apartment complex mandated that each "room" pay 50% of the rent, so we picked up the utilities, which made the total split something like 60/40. Worked pretty well for all involved.
These values are the same for everybody in the house/apartment:
r = Total rent for the whole room
n = Total number of people staying in the house/apartment
t = Total area of the whole house/apartment
s = Total area of shared space used by everyone
These values vary per person/room:
x = Area of room
p = Number of people staying in this room
So in your 2-bedroom example for $1800, we would need the square footage of the entire room. Let's assume 200 ft^2 for the solo guy's room, 300 ft^2 for the couple's room, and 400 ft^2 for the shared space. Plug in as below for the solo guy:
And per person in the couple's room:
This will give you a fair rental split based on both shared space and private space. It's a start at least, to see what's fair, and you can go adjust up/down based on other variables during renting, like if one guy uses the kitchen a lot and the other person doesn't cook, etc...
Utilities are a lot more complicated, I'd say split it evenly per person, not per room.
Umm, since you guys are all into this, thought I would throw another situation out there....hope that ok to the OP, he seemed to get his question answered.
BF just recently started living with GF. GF and GF sister (who currently lives out of state) own the house together (each pays half a mortgage)
BF currently pays $1000 to GF sister a month (includes utilities). BF is currently using the "spare" bedroom for all his clothes, video game systems, most furniture (bed, dresser, etc.)
GF sister is moving back into house!
What should BF new rent be? (I have an idea of what I want to ask for, curious if other people think the same or different)
Other facts: Master bedroom (where BF and GF currently sleep) is bigger. However, the extra area has GF desk, litter boxes (for GF cats), the entire area is used by GF. Bathroom in "Spare Bedroom" is slightly bigger. Master bedroom has more closets. (Currently just enough space for GF shoes/clothes) BF will have to get storage unit for his stuff when GF sister moves back in. There is room for 2 cars in the garage.
Please show all work, partial credit may be given. :-)
Please confirm the following:
Current mortgage payment
Location (the more specific the better)
Average rent prices in the area for similar situations
Size/layout of the house (square feet, number of rooms, types of rooms, one- or two-story, etc.)
Right now the only thing I'd say is that you'll most likely end up paying less than you do now, although I could easily see you paying the same or maybe just very slightly less. How much less depends on a bunch of different factors. The truth is, if the sister felt strongly enough she could kick you out. Obviously that's not going to be a first (or even last) option, but keep in mind that it is her place, too. She's paying the mortgage, so don't walk around like you're entitled to stay at the place. This is probably going to be a difficult adjustment for both you and your GF (or BF?), given you've gotten used to having the place to yourselves. In fact, you may want to think about just getting your own place for yourself. All things considered, it might be the best option.
At the very least, you're going to have to figure out what to do with all your extra crap...
Location (the more specific the better) South San Jose CA
Average rent prices in the area for similar situations - I know a couple renting a house slightly bigger for $2000/month
Size/layout of the house (square feet, number of rooms, types of rooms, one- or two-story, etc.) Two story 1370 sq ft, walk in the front door, kitchen on the left with kitchen table, living room with my desk and couches and TV, half bath off the kitchen. Stairs going up. Laundry room at top of stairs. Turn right, master bedroom, turn left spare bedroom
Dunno if this helps too, but up until I moved in, they had a renter for the spare bedroom that was paying $750/month.
It's basically the same thing, but my formula will also take into account the size of the room. Ie if one of the rooms is a large master bedroom, and the other is a tiny closet, it should be split up a little differently than if each room had an even share.
This could definitely backfire. The last thing you want is one person feeling resentful after a month or two for how much they're paying. Sure, you could tell them to suck it up, that's what they agreed to, but being technically correct (even though it's the best kind of correct) doesn't make for a great living situation, especially since you'll probably be stuck with your roommates for at least one year. At the very least, finding out the "fair value" is a good starting point before you begin the bidding wars for rooms.
This is a bit of a toughie. Unfortunately the GF and her sister are tied down, so they can't exactly walk away from the place. Also, it's not like there would be a spare room to rent once the sister moves in, so it could be argued that anything you contribute is "gravy". In addition, the BF might objectively find a better "deal" elsewhere, but it would take some searching, and there would be some negatives (and positives) associated with that move.
I'm not gonna throw out any numbers, but I could very well see the BF continuing to pay $1k a month. Or maybe pay a little bit less. I'd be hesitant to pay less than $750 per month, but that's just me. I'm the kind of guy who would recognize that I had a pretty sweet deal previously, and would place a high premium on both living with my girlfriend and building goodwill with her family.
What I wouldn't do is pay more than I want to, and then get all resentful about it. If the BF is unwilling to pay what the sister feels is acceptable, he should be an adult, treat it as a reasonable disagreement, and find another living arrangement.
Which I guess brings me to another question - is everyone involved actually comfortable with everyone living together? Sometimes people say one thing but secretly think another. I think it would be a good idea to ensure that everyone, particularly the sister, is actually OK with the potential new living arrangement.
The public spaces should then be split equally, in my opinion. That works for both Deusfaux and Kathris. If certain areas are 'claimed' that could be worked into the calculations, but assume the bathrooms are shared etc.
There are a lot of ways to split the rent. The main thing is to make sure everyone is okay with what they are paying and no one feels like they are unfairly overpaying. While not one of your scenarios, I lived in a 3 bedroom where I got the smaller, low ceiling, cracked floor room. My roommates were pretty awesome though, and offered lower rent for that room - about $125 below what they were each paying. We shared space pretty equally and all helped out with cleaning when we could. I'm not sure what formula or whatnot they used to determine rent, but it worked for us and that's what mattered.
For the BF (hijack guy):
I would suggest that you pay $1000 - storage space cost if that works for the GF sister. I agree that if that or what you ultimately agree on is too much to pay, you should look into finding another place to live.
Step 2: Come to a mutually agreed upon amount
Step 3: Pay that.
My thinking is that 3 falls between 1 and 2. As many rooms as 1, but as many people as 2. With the simple conclusion that A in the solo room would be paying something between those two extremes. Less than 50%, or $900, and more than 33%, or $600.
I'm seeing a couple people suggest the solo room still pays 50%, several suggest close to 50% with a small discount (like 6%), and only one person seems to suggest they'd pay 33%, the same as if there were 3 bedrooms.
Anyone else has various means for determining a percentage in the middle.
HMMM
We all pay the same rent & third of the bills though.
I would say that $1000 is still more than fair for you. I'm curious however as to how your rent will be split when the sister moves back in.
That's a good point, actually.
Luckily, car parking is non issue, no balconies either. Nobody is on a term lease either. Not sure what other differences could factor into deciding split.
Which is actually re-deciding split. One roomie is not happy after 10 months, suddenly.
Me too, that's why I asked. I do think it is curious that no one has stated they think my rent should go down. (That was my opinion)
This actually in a way becomes similiar to the problem that the OP was asking, 3 people in a house, 2 sharing a room.
Looking at comp that I used, the whole house if rented would be $2,000. I am currently paying $1,000.
Now another person is moving in. One would think that my rent would go down....
Anyway, I was thinking about asking for $670. (1/3 total rentable value of house) I thought this was generous even though I do not have my "own" room.
I do not see why the monthly mortgage payment even matters in a situation like this. I would think the monthly rent value would be the "base"
Anyway, that's in my opinion, everyone is different, just curious as to what people would say.
(I THINK that sister is ok with me living there, if she is not, Im sure my GF would tell me that we need to find a new place for the two of us)
Because of this, I think it would be best to actually work with the details of the situation, with a focus on discussing and addressing the issues of the complainant... No sense working in hypotheticals if you actually have reasons for the unhappiness.
How was it before and what are the problems that have been brought forward?
I would say it totally matters. It's not necessarily a matter of them being "cool" with sharing a room, just that someone is going to have to. I think unless they're a couple or just really want to share a room, their rent should be cheaper than Mr Has a Room To Himself.
Systems lke that can get super retarded quick. Imagine a 3 bedroom house with thre couples in it. You would charge them per person and it would result in them paying 100% more than if it was a per room basis. No offense but when landlords pull shit like that it is money grubbing.
1b) $900 each
2) $600 each
3) $600 each
If you think you should pay less for having a smaller room, or if you're not romantically engaged with the person you're sharing the room with then don't fucking move in you silly goose.
I didn't consider it to be money grubbing, but equitable. I should also probably point out that this was a house I lived in, and most of my other renters, or perspective renters were looking for solo rooms. Rent IMO is not just for a bedroom, but also for a share of the common space and resources in the house or apartment. Is it fair for a person who happens to have an SO they want to share a bedroom with to get a discount on their rent compared to a single person when they end up taking up more bathroom, kitchen, and common area space and time than a solo renter?
The people sharing a room get a discount, because they're sharing a room. But everyone else who lives with them also gets a discount, because there's one more person splitting rent. It's not like you just split the room rent in half...
We're doing an even 3-way split with rent and all utilities and most of the time I feel like I'm the one who's overpaying, considering that they also monopolize the common areas and use much more electricity than I do (even though they like to insinuate that I'm somehow responsible for our power usage and bellyache every time the bill comes in).
I guess what I'm saying is, there are a lot more variables than x people and y rooms, and deciding rent splits is about compromise rather than a square footage formula.
Charging everyone the same price means that everyone should have equal space. If two people are sharing a room and two other people are not, the two in the same room have less space than the other two. It doesn't matter if you are including common areas/bathrooms etc because it is still a fact that they have less space. I'm not saying that people sharing a room should get to pay 50% of what one person would pay because that does not take common areas into account. A fair 50% for common areas, 50% for room which means that sharers would pay 75% of what a single person pays. In this case, the landlord (you), would still get 50% extra from them which should be enough to justify their taking up more space outside of their room.