Living with roommates can be a great way to save money on rent. But it can also be a bit of a hassle if you’re not sure how to split the rent evenly. If you’re not careful, you could wind up paying more than your fair share or, even worse, end up on the street.
Whether you are just moving into your first apartment, looking for ways to reduce your monthly expenses, finding your roommates online, or moving in with your longtime best friend, you can use helpful advice. Here are a few steps you can take when figuring out how to split the rent with roommates.
Step 1: Establish some ground rules
The first step in figuring out how to split up rent with roommates is establishing some ground rules. That is especially important if you’re moving into a new apartment with people you don’t know well.
Do you know how your lease agreement details every aspect of when and how you need to pay the property manager? You can create a roommate agreement that does the same. A friendly, honest discussion at the start of the roommate relationship to set ground rules and guidelines for splitting rent and other costs with roommates can go a long way in preventing future conflicts.
If you’re already living with roommates, discussing finances is still a good idea. You may find that you’re not on the same page about what you consider an acceptable expense. For example, one person may think that eating out is a necessary part of life while another may prefer to cook at home to save money.
Step 2: Decide together how to split the rent
Here are five different ways to split the rent between roommates.
- Divide the rent equally. Everyone pays the same amount each month based on the number of occupants. For example, if four people live in your apartment for $1,600 per month, each person would pay $400 per month in rent.
- Use proportional splitting. Rent is split based on each person’s income. For example, what if the monthly rent is $1,350, Person A makes $60,000 per year, and Person B makes $30,000 per year? Person A would pay $900 per month in rent, while Person B would pay $450.
- Base rent portions on room size. Rent is split based on the size of each person’s bedroom. For example, what if the rent is $900 per month and Person A has a bedroom twice the size of Person B’s bedroom? Person A would pay $600 per month in rent while Person B would pay $300.
- Take turns. Each person takes turns paying the entire rent amount every other month. This arrangement often works well for couples who are living together.
- Use an online calculator. You can also use an online calculator to help you split the rent. That is an option if you want to ensure that everyone pays their fair share.
These are popular methods, but you can decide which one makes the most sense for your situation.
Step 3: Figure out which bills you’ll share
Next, you all need to decide which expenses you’ll share and which costs each renter will shoulder alone. For example, should all roommates split utilities equally? What about groceries, transportation, other regular costs that you incur each month, or extras like streaming services?
Roommates often decide it makes sense to split utilities like electricity, water, and entertainment everyone uses equally, like cable bills. But what if one roommate must have something like a subscription to one premium channel added to the shared cable package that another roommate doesn’t want or use? Then you can have the roommate who wants the extra perk cover that added amount.
Step 4: Decide which bills you’ll keep separate
You don’t have to share every bill with your roommates because you live with them. Some costs are better kept separate. Expenses you might separate include cell phone service, data plans, and streaming subscriptions that you’ll use on your own.
Likewise, even if you share something, you don’t always need to split the bill. Furniture provides a prime example. Unless you plan to sell all shared furniture when you move out, you might think about buying various furniture pieces separately. Otherwise, shared furnishings can create stress when it comes time to figure out who gets to keep which items.
Instead of splitting all costs for shared electronics and furniture evenly, some roommates prefer to list all the things you need for your new place and then assign roommates to get different items. You can keep overall costs equal while making individuals responsible for getting certain items.
Groceries offer another example of costs roommates often choose to separate. Especially if you and your roomies have different diets and tastes, splitting grocery bills can create tension. If you’re planning to share groceries, you might use meal planning and budgeting tools to ensure one roommate doesn’t have to bankroll another’s expensive meal choices.
Step 5: Get organized
Getting organized is an integral part of keeping the peace. Some ways to get and stay organized include:
Creating a spreadsheet for splitting bills with roommates
After setting ground rules for splitting the rent and other costs, you might need a spreadsheet. Your spreadsheet should outline each expense and how each roommate must pay. You’ll want to include details like:
- Due dates
- Amounts owed
- The person responsible for paying
Pro-tip: Monthly roommate meetings to discuss bills and go over the spreadsheet can help keep everyone on the same page. That way, no due date or cost can come as a surprise.
Planning and managing payments with apps
Do you need to calculate how to split utilities between roommates? There’s an app for that. Especially with big-ticket expenses, apps can help with math and payment collection. Some apps to check out include:
- Venmo: You can send and request money using Venmo. This app can also help you let roommates know that a bill is due.
- Splitwise: Another popular app, Splitwise, lets you track bills, tally who has paid, and send reminders. It’s an alternative to the more old-school spreadsheet method.
- IOU: Using IOU, you can upload expenses, share expenses equally among roommates, and send email reminders. You can even create a payment plan for big purchases or set recurring IOUs for monthly bills.
- Splittr: This easy-to-use bill-splitting app doesn’t require anyone to log in. You can upload costs and choose between even or uneven splittings with your roommates.
- OurGroceries: If you decide to share food, drinks, or communal ingredients with roommates, this app lets you share grocery lists. You’ll have an easy tool to make and adjust lists, even crossing items off once you buy them.
Don’t miss out on our complete list of the seven best apps for splitting bills with roommates. Figuring out how to split the rent with roommates legally doesn’t have to create tension in your relationship. Whether you need a way to divide necessary costs like water and electricity or plan to deal with entertainment, groceries, and more as a group, staying organized will help keep the peace in your home.
Start by having an open, direct conversation with your roommates about which bills you should (and shouldn’t) share, then create a system that keeps everyone in the loop. You’re well on your way to maintaining a positive roommate relationship while staying on top of your bills.
Looking for an apartment with new roommates? Start your search and discover thousands of apartments for rent on Zumper.
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