When you move in with new roommates, it’s understandable if you’re shy about discussing money and the bills. However, setting expectations at the beginning can prevent awkward conversations and passive-aggressive tension later. To keep your roommate finances in order, follow these tips for splitting household bills.
Calculate Your Household Bills
When you’re considering moving in, you should make a list of all your bills and the approximate amount they will cost each month. Make sure all roommates know and accept their responsibilities before signing the lease. Bills that might need to be split include: electricity, gas, water, trash, cable and internet. Your landlord might cover some of these bills as part of your lease agreement, so be sure to ask what you and your roommates are responsible for.
Some bills are easier to budget than others. For example, internet and cable usually costs the same every month. On the other hand, electricity charges depend on how much you use. You might need to live at your new place for a couple months to figure out the average monthly cost. Or, you could ask your landlord what they estimate the bill would be.
Also consider shared items within the apartment. How will the costs of household items like toilet paper, light bulbs and cleaning supplies be divided? Some roommates share the costs of food and furniture. Decide up front what items will be held in common.
Decide How You Want to Split Bills
One easy way to split bills with roommates is to divide them equally between everyone. For example, if there are three people living together, you each pay a third of every single bill. Another option is to assign different bills to different roommates. For example, you pay the electricity bill and your roommate pays for gas and cable. This way everyone has a responsibility and one person doesn’t have to chase down the rest of the household for payment.
Bills can also be adjusted based on use. For example, if one person works from home, they’ll likely use more electricity. It might make sense for them to pay a larger percentage of the bill. However, haggling every month over a few percentage points can create a strain in your roommate relationship. If using this method, get everyone to agree on a set percentage in advance.
To keep everyone on track, set up a chart or calendar in a common area that lists when bills are due each month and what each roommate needs to pay. For a more high-tech solution, try using a shared Google Sheet or an expense-sharing app like Splitwise.
Keep Communication Open and Honest
If a roommate owes you money for a bill, bring it up with them right away. It’s possible they just forgot or they have a reasonable excuse. Find out when they can pay you and don’t be afraid to follow up. They owe you money and you shouldn’t feel bad asking for it. Be direct and keep the discussion focused on bills. You don’t want it to turn into an argument about other roommate problems.
You should still pay all your bills even if a roommate is late on payment. Otherwise, you could lose service. This is even more important if the bill is under your name because a late payment could eventually hurt your credit score.
If your roommate keeps delaying, get more assertive. If you and another roommate have been paying, you could hold a group meeting to discuss when the other roommate will pay. You could also ask the roommate to sign a written schedule of payments to catch up.
Last Ditch Efforts
If your roommate never pays bills, contact your landlord. This might get one more person on their case. As a last resort, you could try taking the roommate to small claims court for payment, but this could be more work than it’s worth. You may have to just take the loss and look for a better roommate as soon as possible.
Healthy communication and the right planning can make paying bills a smooth and easy process. Be sure to follow these steps for successfully managing roommate finances either before or as soon as you move into a new place. Once that’s out of the way, you can relax and enjoy a great year with your roommates.