How to split rent in a sharehouse
Hooray, you’ve signed the lease on your new share house! Whilst you’re probably getting excited about living with your housemates and all the fun times to be had, there’s also the less thrilling side of sorting out the rent split and annoying money stuff.
When setting up a share house, your first discussion with your housemates should be to agree on the rent split. Although it may seem awkward, this should happen before you sign the lease.
Does everyone pay an equal share?
Do you pay based on room size?
What about the housemate who gets the balcony or ensuite, should they be paying more?
Methods to calculate splitting the rent for each room
There are many factors that go into calculating a rent share, and it is important to sort out the housemate split as soon as possible. When deciding, keep the amenities and room size in mind. If the rooms are all similar enough, then it makes sense to split the cost equally or close to. More often than not however, all rooms won’t be valued the same.
1. Charge extra for bedroom features and amenities
A balcony or ensuite usually will add more value to a room. Charlotte Pascoe a Business Development Manager at Melbourne Real Estate suggests that these amenities should be assessed at an extra $20 to $40 a week. Carparks in the city are another added luxury. In Melbourne CBD, Pascoe says that these spaces should be valued at $50 to $80 a week.
2. Ask everyone to write down what they think each bedroom is worth
Another popular idea is to ask each housemate to write down what they believe is a fair price for each room and see if you any match. Spliddit is a useful online tool that takes each housemates’ nominated preference into account and determines the best split based on your answers. Just be careful you don’t have a cheeky housemate who deliberately skews the results 😉
3. Calculate based on the room size in square metres
If you enjoy a good maths equation, divide the total rent by the number of square metres for each room. This will determine each room cost based on per square metre. This approach also means that you’ll be paying literally for the size of the room, however it won’t take into consideration things like proximity to the bathroom or lounge etc.
Should a couple pay more rent in a share house?
Splitting the bills by the number of housemates is easy, but what about situations when you have a couple sharing rent for one bedroom? Should they pay based on the room size only or on an individual basis? Even though a couple would only occupying one bedroom, it’s still an extra two people sharing and using the common spaces. It’s also more appealing to other housemates to have a couple move in if it means the overall rent will be cheaper.
Justin Ferguson the director of Justin Ferguson Property Specialists believes that couples should pay more. He suggests determining what the room rates are and then increasing the couple’s room rate by 15%.
At easyshare, we have a high number of couples using the app who are renting in share houses. On average, most of these couples are paying between 25% and up to 40% more than would be charged if the room was occupied by a single housemate.
Everyone should agree on the final rent split decided.
No matter how you decide to calculate your share house rent split, make sure everyone agrees on their paying share before moving in. So before calling dibs on the big room with the balcony, it’s probably a better idea to discuss with your housemate how much extra it may cost you.
And of course, once you’ve all agreed on everyone’s share of rent, get the easyshare app to take care of the collecting and paying! Simply tell us how much rent everyone pays, when it’s due, and we’ll pay the total on behalf of your share house. Visit the homepage on our website for more info.