Stop me if you’ve heard this story before. A group of college friends move into an apartment or house together, and things start off great. But eventually, unresolved frustration and simmering resentment leads to a friendship-ending argument between some or all members of the household.
This is a story that plays out on every college campus, every year – and the source of tension is often money. That’s why it’s important for roommates to talk about money before moving in together, so everyone is on the same page from the beginning.
These can be complicated and uncomfortable conversations, but they’ll help you avoid even more uncomfortable household drama later on. Here are some strategies for how to approach the important topics.
How to Handle Finances with Roommates
prefer to charge more or less depending on living conditions.
For example, should a roommate pay more if their bedroom is significantly bigger than the other bedrooms or has a bigger closet? If there are multiple bathrooms, should one person pay more for their own bathroom? If one roommate brings more furniture than the others, should they receive a break on rent for a month?
Even if you think everyone should pay the same amount, you should still talk about these issues openly so they don’t become a source of resentment.
You should also discuss how to split groceries. Many roommates choose to buy food separately, but some choose to split basics like milk and eggs. Again, discuss this before taking a swig of your roommate’s beer or pinching some rice from their side of the cupboard. If you do choose to share groceries, get specific about how you’ll split the cost and responsibility.
If you and your roommates have a TV in the common area, discuss what streaming services you’ll sign up for and how you’ll divide those costs. This can be a huge sticking point if one person doesn’t want to sign up for the same streaming sites that the others do.
Talk about what kind of internet package you should buy, keeping in mind that you may need to pay more to accommodate multiple Zoom calls a day.
You should also discuss who will actually be responsible for making the bill payments. Ideally, each person will be responsible for paying some household bill so it doesn’t all fall on one housemate’s shoulders. For example, if there are three people in the apartment, one person could pay the rent, another person could pay the utilities and the third person could pay for the internet and streaming services.
Next, discuss when each person is responsible for paying their portion of the bills. For example, if rent is due on the first of the month, then decide when each roommate has to send in their share of the rent. Is it by a specific date, or is there some wiggle room? This answer will depend on household dynamics and personality types, but it’s important for everyone to agree on the rules.
If possible, ask your landlord if each person can pay their share of the rent separately. This will ensure that one person isn’t responsible for collecting rent from multiple people.
How to Split the Bills
Nowadays, there are many different apps you can use to split the bills. Splitwise is a free Android and iPhone app that lets you divide bills by percentage or amount. For example, if you’re splitting rent with three other roommates, you can add the rent bill in Splitwise and divide it between the four of you.
Splitwise is handy if you have more than one roommate, because it handles the math for you. After you’re done adding the bills with Splitwise, each person can settle up their portion via PayPal or Venmo.
If you only have one roommate, then you probably don’t need to use Splitwise. Instead, you can add bills via Venmo, Paypal or Cash App.
Be Responsible for Bill Payment
When you’re responsible for paying bills like rent, you need to pay them on time. If you pay rent late, your landlord could charge you a hefty late fee. Use shared calendar reminders to make sure you don’t miss a bill due date. Decide if you’ll split late fees or if only the person who made the late payment will be responsible for them.
If you’re paying utility or internet bills, you can sign up for automatic payments so the bill will be automatically withdrawn from your bank account on or before the due date. This will ensure that the bill is paid on time and you don’t incur any late fees.
Learn to Communicate
One of the most common financial problems that can arise with roommates is a lack of communication, which can lead to one party making assumptions about what another can afford. For example, let’s say you need to buy a couch for the apartment. Instead of asking your roommates how much they can afford to pay, you start looking on your own.
You find a $100 couch on Facebook Marketplace and buy it. When you get home with the couch, your roommates refuse to chip in because they were only willing to spend $50 on a couch. Now you’re upset because you’re paying more than your fair share, and they’re upset because you’re asking for more than they budgeted for.
Before you make any financial decisions that could impact your roommates, you need to discuss them in detail. You never know what your roommate’s financial situation is and how it might differ from yours. Even asking someone to pay $20 more a month could cause them financial stress and anxiety. Go into each conversation with an open mind and give everyone the benefit of the doubt.
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