If you hate the idea of coming home to a quiet rental, then renting with roommates could be for you. Or maybe you just want to save some money by splitting rent with another person. Whatever your reason, knowing how to rent with a roommate creates a comfortable and positive living situation.
Part of finding a roommate is having the tough conversation about how to split rent and what kind of lease you want to sign. Being on the same page allows you to start off on the right foot. Know what your lease and rent splitting options are so you can enter the conversation prepared.
Lease Options for Roommates
There are many types of lease agreements that can work for roommates. Know your options to pick which one works best for you.
|
Lease Type |
Definition |
Pros |
Cons |
|
Joint Lease |
Single lease signed by all roommates |
Cheaper |
Everyone is held accountable Responsibilities must be divided |
|
Individual Lease |
Separate leases for each bedroom |
Each roommate is responsible for themselves |
More expensive May not be able to pick your roommates |
Joint leasing
Joint lease agreements are a single lease that is signed by all roommates, meaning you are entering a co-tenancy with them. All of you are collectively and individually responsible for the lease terms and rent, including utility costs, getting rent paid on time, and maintaining the rental. That means that if a roommate doesn’t pay their portion of rent, the rest of you are accountable for their portion.
For those focused on finding cheap rent, then look for joint leases. They are typically cheaper as landlords have fewer administrative tasks and lower risks with a joint lease. However, you will have to divide up responsibilities and rent among yourselves.
Individual leasing (by-the-bedroom)
An individual lease, or by-the-bedroom lease, is when you sign a separate lease for your own bedroom in a multi-person unit. This means that you’re responsible for paying your own rent and your individual responsibilities on your lease. Depending on the landlord and situation, you may be able to find your own roommates, or the landlord may be in charge of that.
This individual responsibility is nice because you aren’t affected by what your roommates do. For example, if a roommate fails to pay their rent, you won’t be held responsible as you would be in a joint lease. As nice as individual leases are, they are more expensive and difficult to find as they are mainly used for student housing. However, with the rise of co-living, individual leases are becoming more readily available for non-students.
How to Split the Rent with Roommates
One part of creating a budget with roommates is figuring out how to split the rent. The three most popular methods are: splitting rent evenly, splitting rent based on income, and splitting rent based on room size and amenities.
|
Method |
How It Works |
Best For |
Advantages |
Disadvantages |
How to Use the Method |
|
Split Rent Evenly |
Rent divided equally among all roommates |
Similar room sizes and incomes |
Simple and fast |
Unfair with unequal rooms |
Total rent ÷ number of roommates |
|
Split Rent Based on Room Size and Features |
Rent based on room size and perks |
Unequal room sizes or features
|
Fair for different sized rooms |
Ignores shared spaces
|
Find each room’s percentage of all bedrooms combined Appy to rent |
|
Split Rent Based on Income |
Rent based on how much each person earns |
Different income levels |
Ensures no one is financially burdened |
Requires income disclosure |
Calculate each person’s income percentage of total household income Apply to rent |
Split rent evenly
When you split rent evenly, you divide the total amount of rent by the number of people, so you all pay the same amount. It is often the simplest approach as room size, income, or other influencing factors do not play a part. If all your rooms are a similar size, your amenities are comparable, or if you all don’t care about these details, then evenly splitting rent could be for you.
Split rent by bedroom size and amenities
For a fairer approach to splitting rent, you might want to split rent by bedroom size and amenities. To split rent by room size, find the percentage that each person’s room occupies compared to the total square footage of all the bedrooms, then apply that percentage to the total rent.
Each roommates’ rent is proportionate to the space they are renting. For example, if you have a bigger room and more personal amenities (private bathroom, balcony, walk-in closet, etc.), then you would pay more than your roommates with a smaller space.
Before you start calculating how much rent you each should pay, you need to gather:
- The square footage of each bedroom
- The total square footage of all the bedrooms
- Total rent
Once you have that information, you can use this equation to get each roommate’s portion of rent:
- (Roommate’s Bedroom Square Footage ÷ Total Square Footage of All Bedrooms) × (Total Rent) = Roommate’s Portion of Rent
Example of how to split rent by bedroom size and amenities
Let’s say you live in a three-bedroom apartment with two roommates and each of you has a bedroom. This is the information you would gather:
- Total rent: $3,000/month
- Total square footage of apartment: 1,179 sq. ft.
- Combined bedroom and amenities square footage: 448 sq. ft.
- Bedroom A: 185 sq. ft.
- Bedroom B: 145 sq. ft.
- Bedroom C: 118 sq. ft.
To divide the rent based on bedroom size and amenities using the equation, you would do these calculations:
- Bedroom A: (185 ÷ 448) × 3,000 = $1,238.84
- Bedroom B: (145 ÷ 448) × 3,000 = $970.98
- Bedroom C: (118 ÷ 448) × 3,000 = $790.18
Split rent by income
Dividing rent by income is a more personalized method of splitting rent to make sure no one is financially burdened. Calculate the percentage of each roommate’s income compared to total household income, then apply those percentages to the total rent amount.
The more income someone makes, the more their rent portion will be. However, it does require you all to be transparent about your income, which can feel a bit too personal for some people.
If you’ve decided to split rent by income, here’s a handy equation to find out the percentage each person should pay:
- (Roommate’s Monthly Income ÷ Combined Monthly Income of All Roommates) × 100 = Roommate’s Percentage Portion of Rent
Example of how to split rent by income
You and your two roommates are trying to calculate how much you each should pay for rent based on income. Your incomes look like this:
- Roommate A: $3,800/month
- Roommate B: $4,250/month
- Roommate C: $4,950/month
- Combined monthly income: $13,000/month
Now you need to divide each of your incomes by the total income, then multiply by 100 to convert the number into a percentage:
- Roommate A: (3,800 ÷ 13,000) × 100 = 29 percent
- Roommate B: (4,250 ÷ 13,000) × 100 = 33 percent
- Roommate C: (4,950 ÷ 13,000) × 100 = 38 percent
If $3,000 is the monthly rent, you’d calculate each share by finding that roommate’s percentage of the monthly rent:
- Roommate A: (29 ÷ 100) × 3,000 = $870
- Roommate B: (33 ÷ 100) × 3,000 = $990
- Roommate C: (38 ÷ 100) × 3,000 = $1,140
How Apartments.com Makes It Easy to Pay Rent with Roommates
Apartments.com lets you use whatever method you want to split rent with your roommates. Your landlord will invite you all to one payment and you each will individually input your rent portion. This allows you to decide whether you want to split rent evenly, based on room size, or based on income.
FAQs
Can I remove my roommate from our lease?
You may not be able to remove your roommate from a lease, but that doesn’t mean you are out of luck. The first method you should always try is to repair your relationship with your roommate and have a healthy discussion about the issues. If that fails, then check your lease to see what options you have.
You might be able to break your lease and move, though this typically comes with heavy consequences. You could also suggest your roommate move out and sublease their room if your landlord allows that.
How should bills be split with roommates?
Before you move in with your roommates, you need to discuss how you are going to split the bills. For utilities, it may be easiest to just split each bill evenly. However, you could also do it depending on usage, but that can get tricky to figure out. Whatever you decide, make sure to include it in the roommate agreement so that everyone’s responsibilities are clear.
Should you split rent 50/50?
Splitting rent 50/50 is entirely up to you and your roommate. It is the easiest method, but if your room size or income isn’t similar, then it can foster feelings of unfairness. Even if it feels uncomfortable, sit down and talk it out with your roommate so you can come to a decision that you both agree with.
