Well, nobody moves in with their best friend thinking that he or she would become a forensic accountant. But, having been living together for six months and dealing with Venmo requests and passive-aggressive Post-Its regarding the Wi-Fi, you start calculating everything in your sleep. Equal splitting of expenses is the key for any successful relationship between roommates, and failure in this aspect can destroy your friendship in no time.
First of all, it is necessary to decide on the splitting system right after you move in. Just sit at the kitchen table and discuss the list of things that you need to split – the rent, electricity, internet, gas, water, garbage pickup, renter’s insurance. There is no need to complicate the situation – write down the list on a piece of paper. It is enough, although Google Sheets or some special applications can be useful, such as Splitwise, created specifically due to the fact that millions of young adults complained about this problem.
It is interesting that some expenses should be distributed based on the specific system. For instance, equal splitting of the rent is unfair. In case there is a difference in square feet, en suite bathrooms, or amount of sunshine, one of the roommates should pay extra for these features. It may seem to be too petty at the moment, but if you do not discuss it now, there may be conflicts later.
The next mistake is equal distribution of utilities. The person that warms up the apartment or takes 40-minute showers uses more money and should pay additionally for it. Buying smart plugs and an energy monitor will cost you approximately twenty dollars, but will solve the problem. Divide the base cost equally, but make additional corrections for the difference in the level of usage. It is not the attempt to create the tension, it is just accounting.
Groceries should be discussed separately. It is unnecessary to buy toilet paper or trash bags along with the other groceries. There is a special joint bank account or debit card used only for purchases of products for household needs. You may use applications, such as Splitwise, that will track the balance and prevent the situation when somebody states that he or she has been buying the products lately.
Sometimes, internet may be the subject of discussions as well. In case one roommate works from home and streams 4K videos, and the other one uses the computer rarely, 50/50 splitting is too generous for the first roommate. It does not matter for the providers, such as Spectrum or Xfinity, whether the first or the second roommate uses more data, but it matters for you, and you should consider this fact and split accordingly, for example, 60/40.
Now the unpleasant part starts – what to do if one of the roommates cannot pay on time. Late payments affect the relationships much worse than almost anything in the shared life. Define the payment date (it usually is the first day of the month), the grace period (for example, three days), and discuss what will happen in case of the delay in paying the bill. Sometimes, roommates put the penalty for late paying, and it may seem to be rude, but it is actually very effective as it prevents any ambiguities.
Use the technologies that will automate this process for you. The automated payment of the Internet and other bills, and usage of Venmo requests for regular payments will considerably reduce the opportunities of creating a conflict.
One more thing that is usually ignored – the exit strategy. You may need to leave the apartment at some point – for example, if you have met your boyfriend or girlfriend, have to relocate for a new job, or just want to live alone. So, it is necessary to think about what will happen with the shared expenses. Discuss it and write the information about it down in case one of you will leave in the future.
The main principle of the process is transparency. Hidden costs cause suspicions. Discussion of financial issues will become the foundation of the trust that will make everything easier. You are not trying to save money at the expense of your roommate, you are an adult person.