Ok so I'm thinking about buying a townhouse/condo. My brother and I would be roommates and then we'd rent out to a third roommate. Do we split 3 ways. I'd think this was better as long as I was living there so I can just pay the place off. My brother wants to try and split the rent between us two and then just charge the other person a set rate plus utilities. Of course my brother and I would split the utilities as well with the roommate. What sounds better? What have you done?

11/30/2007 10:53:10 PM

Utilities and groceries are usually split equally between everyone. As far as rent goes, the person who has the master bedroom in a house usually pays a little more than the other two (or three) people.

11/30/2007 11:33:10 PM

When I first bought my house and had two roommates, I just charged them as if it we were sharing an apartment.

Since I hate going through the pain of splitting out utilities, i just charged them a flat $400/month.

12/2/2007 9:37:55 AM

yeah the master bedroom makes the percentages 40/30/30 imo, with 40 percent being the person with the master bedroom...also, what ^ said is what i would do...shit is more simple

12/2/2007 11:30:27 AM

yeah, except that he's the one who is buying the fucking thing so he had to put down a down paymetn and is ultimately responsible. i say split it even.

12/2/2007 11:53:02 AM

I own a 3 bedroom townhouse and I just started renting out 2 of the bedrooms a few months ago. I charge each person a set price for rent + split utilities 3 way.

only reason I don't charge a flat fee for utilities is because the utilities have gone up since they moved in (obviously). When I lived alone my utilities were at a minimum because I never left lights on, tv's on etc. Now the lights are always on in every room and the TV is on even if no one is watching it so I didn't feel like paying extra out of pocket.

[Edited on December 2, 2007 at 12:11 PM. Reason : .]

12/2/2007 12:09:49 PM

I do the same thing that Bobby said, just a flat rate.

Quote :

"he's the one who is buying the fucking thing so he had to put down a down paymetn and is ultimately responsible. i say split it even."

He's also the one that gets to build equity through payments towards the principle along with appreciation.

12/2/2007 2:10:44 PM

i am waiting at least another year before I buy a house...I am in NOVA and the market is a buyers market but the prices are gonna continue to drop, especially when all those ARMs adjust in 2008 and there are massive foreclosures. Most of the people that got ARMs arent going to know what is available until it is to late...sad for them, good for buyers.

the house beside where I am renting, bought for 600k a few years ago, for sale for 354k and there hasnt even been a nibble on it.(nobody lives there now) Every week seems to be another "For Sale" popping up in this neighborhood.



[Edited on December 2, 2007 at 3:46 PM. Reason : w]

12/2/2007 3:44:19 PM

I'm not in your situation, but if I was, I'd level with my sibling about how much the total payments were/month, and come to some terms on how much we felt was a comfortable charge. Personally, I'd treat my sibling different than the average renter, but some people may feel differently.

As the owner, I think I would look at comparable rents around the area, and base my price off of what I would expect to pay as a renter in the situation. I'd use that basis to start determining rental rates for both the subling, and the other roommate.

Utilities I would split 3 ways, unless one person was always leaving lights, TV's, other electronics, etc., on all day every day - then they'd have to pay more on a % basis (this 100% comes from me having to pick up the tab for other people being careless in the past).

Again, not in your situation, but make sure you get everything in writing no matter what you do

12/2/2007 5:04:14 PM

thanks for the different ideas...will talk to my bro later.

12/4/2007 5:44:22 PM

I charge the 2 roommates a flat $425 a month that includes all. They pay my mortgage and I dump extra on it and pick up the total utils.

12/13/2007 9:15:48 AM

i rent two of my rooms out as well. i charge 550 for one and 500 for the other with all utilities included. the rooms are also furnished.

my brother and i talked about him moving in but i told him i really couldnt move a lot off of my price. i would help a little, but you have to also think of opportunity cost. you charge him $50 less a month, thats $600 a year you are basically giving to him. if you and him are comfortable with that, so be it.

12/17/2007 2:44:38 PM