Do you live in Australia? I bet you know Australia is experiencing a painful rental crisis, further contributing to increased rental costs. According to a recent report, approximately 3,77,600 people in Australia need housing.
Among them, 3,31,100 are in rental stress, and 46,500 are homeless. Given this scenario, many people are considering splitting rent. Besides addressing the vacancy issue, a rent split just may help save money on rent every month. Who knows! If you are also planning to split rent, this post is a must-read.
It explores how to split rent to enjoy the concepts’ best benefits. Read on!
How to split rent fairly – the 6 efficient hacks!
Consider the following hacks to split rent evenly as a couple or in a sharehouse –
Look for a suitable property:
Start searching for a suitable property. Typically, rent may vary in sharehouses depending on factors including total square footage /room size/closet space/private bathroom inclusion/ terrace availability, and so on.
Find something that matches your budget!
Craft a budget
Before you agree on the split…you should figure out how much rent you can afford after managing your bills and buying essentials. To create a budget – calculate your monthly income and subtract essential expenses. Once you deduct the expenses for bills and groceries, check the amount left in hand and decide how much you can accommodate for rent.
For instance: earning AUD 2000 monthly and spending AUD 600 on bills and utilities would have AUD 1400 left (AUD 2000-600). You can now pay $300-400 towards your rent and keep the rest for savings and non-essential expenses.
Pro tip – Use a spreadsheet to maintain a monthly cash flow record. It will help you make necessary adjustments with budgeting as and when required.
Get a roommate agreement
When renting to family and friends or living in a sharehouse in Australia, drawing up a roommate agreement is imperative. It serves as a contract between you can your roommates – spelling out exactly what everyone can expect when living together.
Your roommate agreement should clearly classify how you will split rent with roommates, guidelines for using common areas, norms for sharing food and supplies, responsibilities related to common household works, including cleaning, pet rules, moving out specifics ,and so on.
In fact, it should also include the terms upon which everyone has agreed regarding late-night parties and hosting guests.
Overall; the document should include circumstantial, behavioural, and financial scenarios influencing your co-living arrangements.
Talk over utility bills
When it comes to living in a sharehouse, utility bills turn out to be a significant expense, especially when one partner owns the house. Ensuring everyone in the house contributes equally or fairly is crucial to avoid disputes.
Generally, the utility bill split is done by dividing the monthly bill by the number of people living in the house. This ensures proper distribution.
To avoid confusion – you can nominate one person from your sharehouse to whom everyone can transfer the money. They can then forward the entire due amount to the utility company. If you share the expenses as a couple, things should be translucently clear… you should split the cost in half to avoid hassles.
Bond negotiation
Budgeting for the bond is essential when moving into a sharehouse for the first time. A bond is usually paid upfront and considered a type of deposit. In Australia, the bond amount is equivalent to four weeks’ rent. For example: if you have agreed to a weekly rent of $200, the bond amount will be $800.
The challenge emerges when any roommates decide to leave the house before the lease ends. The process can be unimaginably expensive. What’s more, it can impact everyone sharing the house. Given this, you should always negotiate your bond when splitting the rent.
To avoid additional costs, clarify that you will line up someone to take over the lease when any roommates propose leaving. Notify your rental agency to avoid any room for dispute. This way, you can dodge unexpected fees, and your landlord will appreciate your wisdom!
Use a rent split calculator
Finally… use a rent split calculator to maintain accountability – this tool can help you calculate the appropriate rent for each person, allowing you to split the rent evenly.
Usually, rent split calculators split rent based on the total rent, square footage of the property, square footage occupied by each tenant, number of private and shared bathrooms, and more.
People also ask
Can you split the rent in Australia?
Yes, you can! Splitting rent as a couple or in a sharehouse allows you to save significantly while helping you obtain a fun co-living experience. Therefore, if you’re running tight on budget and shrugging to find accommodations – share a house ( as a couple/in a share house).
Should you consider the monthly income when splitting rent?
When it’s about paying rent, your monthly income is one of the primary factors determining your abilities; therefore, whether you are splitting rent or living individually… you should always consider your monthly income.
Why do you need a roommate agreement?
In sharehouses, roommate agreements are crucial- they help avoid financial disputes. Additionally, they allow you to dodge chances of fallings-out (triggered by behavioural and/or circumstantial factors). Furthermore – they help foster a cherishable bond between those sharing the home.
