A Guide to Fair and Hassle-Free House Sharing
Sharing a house with fellow students can be a great way to save money, make friends, and enjoy your life at university with your built-in social crowd. However, managing shared bills can be a significant source of stress if not handled properly. Here are 8 steps to split bills with housemates to set up a fair and effective system for everyone, and tips on handling situations where a housemate doesn’t pay on time or refuses to split a bill.
What Most People Do Wrong when House Sharing and How You Can Avoid It
Many students make the mistake of not discussing financial expectations in advance or failing to use tools or apps to simplify managing bills. Miscommunication and a lack of planning can lead to disputes and financial strain. By addressing these common pitfalls, you can ensure a smoother house-sharing experience, starting with our top tips on how to split bills with housemates.
How Housemates can Split Bills Fairly: 8 Essential Tips
Step 1: Discuss Financial Expectations Upfront
Before moving in together, have an honest discussion about finances. Make sure everyone understands the importance of paying their share of the bills on time. Agree on a budget and decide how you will split the rent and utility costs. This conversation will set the tone for your living arrangement and help prevent future misunderstandings.
Step 2: Choose a Fair Method for Housemates to Split Bills
There are several ways to split bills fairly with housemates:
a) Equal Shares:
Split all bills equally among housemates.
b) Proportional Shares:
Allocate costs based on room size or amenities. For example, a larger room might cost more.
c) Usage-Based:
Split utility bills based on individual usage, such as dividing the broadband cost by the number of devices each person has.
Choose a method that everyone agrees is fair.
Step 3: Set Up a Shared Bank Account
Simplifying Transactions:
Consider setting up a joint bank account for the payment of household bills. Each housemate contributes their share of the bills into this account each month. This makes splitting the rent and bills easier and ensures transparency. Document all transactions so everyone can see where their money is going.
Step 4: Use Bill-Splitting Apps
Streamlining Management of Bills:
Bill-splitting apps like Splitwise, Splittr, and Venmo are all easy for housemates to use and can simplify the process of managing shared expenses. These apps allow you to keep track of who owes what, send reminders, and make payments. Using an app can reduce the risk of forgetting or disputing payments.
Step 5: Create a Payment Schedule
Consistency is Key
Establish a clear payment schedule. Decide on a specific day each month when everyone must pay their share into the joint account or directly to the bill payer. Having a consistent schedule helps everyone plan their finances and reduces the likelihood of late payments.
Step 6: Assign a Bill Manager
Delegating Responsibilities to Housemates
While one person should not have to bear the brunt of being responsible for all decisions in a house-share, it is worthwhile assigning specific roles and responsibilities among housemates. You could have a Lead Tenant for all home management issues, such as maintenance or contacting the landlord or property agent, a Procurement Manager could be responsible for buying shared household goods such as toilet roll or washing up liquid. And a Bill Manager, who is responsible for collecting everyone’s share of the bills, making payments, and keeping records. Rotate these roles periodically to ensure fairness and prevent burnout.
Step 7: Document Everything
Keeping Track
Maintain detailed records of all bills and payments. Use a spreadsheet or a dedicated section in your bill-splitting app to log amounts, due dates, and payments received. This documentation will be invaluable if any disputes arise. You can track expenses in our Student Budget Calculator, available to download from our Student Bundles.
Step 8: Dealing with Non-Payers
Keeping Track
Despite your best efforts, there may be times when a housemate doesn’t pay their share of the bills on time, doesn't have the funds momentarily, or refuses to pay altogether. Here’s how to handle these situations:
Communicate Clearly and Calmly: If a housemate misses a payment, approach them calmly and ask if there’s a problem. Sometimes, financial issues or simple forgetfulness are to blame. Clear communication can often resolve the issue without conflict.
Set Consequences: Agree on consequences for late or missed payments when you first move in. For example, you might impose a small late fee or require the person to cover an additional household expense. Knowing there are consequences can motivate timely payments.
Adjust the Agreement: If a housemate is facing genuine financial difficulties, consider adjusting your bill-splitting agreement temporarily. You might agree to cover their share until they can repay you or reduce their contribution for a short period. Flexibility can maintain harmony in the household, however, don't get yourself into difficulties trying to help others out financially. Each tenant needs to be responsible for their own expenses and debt.
Legal Action as a Last Resort: If all else fails and a housemate refuses to pay their share of the bills, legal action may be necessary. This should be a last resort, as it can damage relationships and create stress. Before pursuing legal action, consult with your landlord or seek advice from a student legal service.
Parting Advice for Fair Bill Splitting
Sharing a house and splitting bills doesn't have to be a source of stress. By setting clear house rules and expectations, using helpful tools, and maintaining open communication, you can create a fair and harmonious living arrangement. Addressing issues promptly and calmly helps navigate the challenges of house sharing successfully. Here’s to a smooth and enjoyable university living experience!
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