How much to charge a roommate?

[Pyro81]

It's getting more and more apparent that i need to get a roommate to help with my money situation. I know how to go about getting one, but the problem is i have no idea in what i should ask for in monthly rent.

Whomever ends up living with me will get the two extra rooms in the house since they are both a bit small. They will also get one of the garage bays in the garage (i've got three of them, i think i can spare one of them, lol.)

I figure i'll charge at least a third of my mortgage payment since the majority of the house/garage/sheds/etc will be mine. The problem rests in figuring out how much the electric, propane, and water bills will increase. It'll be impossible to figure out exactly how much it will increase because everybody's habits and usages differ. But if i can figure out an average base it'll help.

So basically i'm wondering if anybody has some experience in this sort of thing and can help me out?

[marinofan]

If i was going to rent from somebody, assuming your renting to one person, and there's one of you, utilities should be split 50/50, not whatever the difference is because you pay X amount regardless.

So just tell them half for utilities and I wouldn't do a 1/3 of your mortgage I would do at least 50%, you have to realize you still have to pay for upkeep, your renter doesn't.

Where I'm at I pay my own utilities, he had a separate box ran, but I'm pretty certain I'm paying 70-80% of his actual mortgage. I still have a great rental price, he gets a big chunk of his mortgage paid. I have no upkeep to worry about. Everybody is happy.

[ice992]

I rented a room from a friend a few years back, and it was 50/50 split, but we became good friends so we actually hung out together n worked on cars n stuff so it wasnt a big deal about this is mine that is yours etc... the only thing we payed for by itself was food stuff unless we were barbecuing or something. all said and done, I payed 600/ month. which included us splitting having the grass cut by someone and such.

I would set it up as X amount per month + 50% of all utilities.

[Pyro81]

That's basically what i started to think about doing. The only thing i don't like about it is waiting till i got the bill then asking for money. I might just end up doing it like that anyways. I mostly want to know about how much my utilities is going to increase, so i can at least give a ball park figure in how much they will be paying me each month.

[s3fight4freedom]

good ball park is an added 250 total for all utilities

[frenchblueC2]

That's basically what i started to think about doing. The only thing i don't like about it is waiting till i got the bill then asking for money. I might just end up doing it like that anyways. I mostly want to know about how much my utilities is going to increase, so i can at least give a ball park figure in how much they will be paying me each month.

I don't blame you. But at the same time, I can also see the risk in asking for a single monthly rate.
The renter may abuse the hell out of that and leave lights on and run water, kinda like how people treat a hotel or dorm room. Cost is the same for them, so why should they care?


Perhaps go to your electric company's website to see if they have a calculator for how much it costs to run certain appliances in a home.
Pretend like your roommate will potentially leave on his computer, tv, a/c, lamps, etc 24/7 to get a ballpark of what that'll cost each month.

Perhaps also check around for apartment listings in your area that have unlimited utilities like heat/hot water, and see what they're charging per month. That may help you get an idea of how much renters are willing to pay monthly.

[Rhino]

That's basically what i started to think about doing. The only thing i don't like about it is waiting till i got the bill then asking for money. I might just end up doing it like that anyways. I mostly want to know about how much my utilities is going to increase, so i can at least give a ball park figure in how much they will be paying me each month.

I think what you have to look at is that if these people rented anyplace else it would be flat rate for the rent and then a different amount each month for utilities based on how much was used. I don't think anyone would be upset if you say it will be $xxx for rent and the half of utilities. I see that all the time in ads listing rooms for rent.

If you are renting to a friend I'm sure you can agree that "you don't abuse the utilities and I won't abuse the utilities"

[Darkhorse145]

Another option is to do what I have been doing for the last year I rent the place here for about 75-85% of the guys mortgage payment, but i pay 0 in utilities, except for electric. (which runs me about 30 bucks a month. Now the place is on well water so if I'm spliting the electric with him I'm also paying for my water. but I don't pay for gas, trash, sewer or cable/internet. All in all I pay about 680 a month with my electric.

[rouar]

If you are renting to a friend I'm sure you can agree that "you don't abuse the utilities and I won't abuse the utilities"
Doesn't always work out. I have seen friendships greatly strengthened, and others completely ruined, by friends living together.

Rent prices depend on the region. You should check apartment rental websites for your area (craigslist apartments / rooms for rent is a good starter) for ideas what to charge. You don't want to go too high as it will price you out of your region, but you also don't want to go too low for your area since that tends to get problem tenants.

[mosoblkcougar]

My roommate and I split everything half and half in our apartment. I know I use less electricity, but its easier on everyone that way. We both are good about not leaving water and such on, so it works out good. When I finally move out after graduation and if I get another roommate, thats how I'm going to be doing things.
Nathan

[Blackcoog]

As said above you need to do some research and check what people are paying in your area. I don't think you should use your mortgage to gauge what you should charge. Sure you can say you want to get 1/3 or 1/2 of your mortgage payment but maybe you are paying too much or too little in the first place for your house. You may not get a roommate if you are asking too much. If you ask too little then you'll be loosing money.

[sonza68]

Several years ago now, I was renting a townhome with two roommates. One decided to buy a house on relatively short notice, so we rented rooms from him for several months until we each got our own place. The situation was similar to our previous rental setup. Our rent ended up being 1/3 the mortgage payment and utilities were split 3 ways.

[Pyro81]

I don't think asking half my mortgage would be too much. In fact, it might actually be a low number. My dad lives in a 2-bedroom apartment with a one car garage, living room, kitchen, dining room, big laundry room, and bathroom and he pays $500 a month. It's a decent apartment. Of course, basing it on just that one would be stupid of me, i definitely need to look around to see what others are asking.

Thanks, all, for the info.

[fordrule]

how much of a say do u want him to have in the house. if he pays half....half the say...but deff 1/2 utilities

[Pyro81]

Well, considering that it will only be a temporary situation till my finances improve or i get hitched and start a family what they have a say in will depend on the circumstance. Like, say, if they want to paint their room(s) then i'm fine with that since i will be basically renovating the place when i can afford it. But ultimately since i'm renting out a room in my house that's in my name rather than sharing an apartment i'll have final say in anything drastic or large. But for the most part i don't think i'll be too imposing on anything. For the most part they will have free reign on anything that is "theirs".

[fordrule]

thats a good way to look at it

[marinofan]

how much of a say do u want him to have in the house. if he pays half....half the say...but deff 1/2 utilities

I don't necessarily agree with that philosophy. Pyro is gonna be the one that has to fork out cash if something breaks. The renter just pays the same. Like I said, where I'm at now I know I'm paying about 75-80% of this guys mortgage payment. He told me that when we went out drinking one night. LOL But he has to pay to fix stuff, I don't.

[Pyro81]

Eh, it doesn't really bother me either way.

I think maybe tomorrow i'll start looking around at apartment prices.

[Blackcoog]

I don't necessarily agree with that philosophy. Pyro is gonna be the one that has to fork out cash if something breaks. The renter just pays the same. Like I said, where I'm at now I know I'm paying about 75-80% of this guys mortgage payment. He told me that when we went out drinking one night. LOL But he has to pay to fix stuff, I don't.

75-80% OUCH! Maybe his mortgage payment is low. Just keep telling yourself that. lol

[marinofan]

I only pay 500 a month for a 3 bedroom. LOL once I get some shelves, to unpack my boxes, I'll put some pics up.