The financial pros and cons
Deciding where to rent an apartment can be stressful, but choosing who to live with can be worse. Whether you are freshly out of college and looking for your first pad, or you are planning to move to a new location, deciding whether renting an apartment solo or with a roommate can be tough. Both options have their merits and their pitfalls. So, what are the financial pros and cons of renting an apartment with a roommate?
Pro: Increased Cash Flow
Renting an apartment is expensive, regardless of your age and financial situation. By renting an apartment with a roommate, you can increase your cash flow, and help cushion your budget. It is best to look for an apartment that is within your budget, but possibly at the higher range of that budget. You can then look for a roommate to help with the rent. Finding a roommate can be useful for people who own their property, as well. When you take on a roommate, they are taking on half of the expenses, which instantly creates more significant cash flow.
If you want to be extra savvy, make sure you keep your budget tight and merely bank the additional savings each month. You will build up a nest egg in no time at all.
Pro: A Nicer Place with Better Amenities
Often, renting an apartment with a roommate can ensure you get a higher-end place to live with better amenities. When you are sharing rent, you can afford to spend a bit more for a place that is in a better location or includes facilities you want without breaking the bank.
Living in a prime location, or an area with great amenities can save you on the backend, too. For example, if you live close to downtown, you’ll use less gas and have less wear and tear on your car. If you live in a location with an on-site gym, you won’t need to spend money on a gym membership.
Con: Shared Responsibility
Roommates fight, and more often than not they fight over who is responsible for tasks and payments. When you are forced to share responsibility with another person, it can be difficult not to feel like you are doing it all, and they are doing nothing. The issue of shared responsibility can be finance related, or just housework related. To avoid such problem, you and your roommate should lay down ground rules regarding bill payment, due dates, and responsibilities around the house.
Con: Your Roommate’s Financial Issues can Quickly Become Yours
When you take on a roommate, you share more than just the rent, you become intertwined with one another, whether you like it or not. Most landlords will not care if you’ve come up with your half of the rent and your roommate didn’t, and neither will utility companies. When dealing with renting an apartment with a roommate, it is essential to make sure they are financially stable, so you don’t accidentally inherit a problem.
Now that you know the pros and cons of having a roommate, it is time to make the big decision. Whether you decide to strike out on your own or inherit the friendship and issues of a roommate, you are sure to find a great place that suits you well. Once you move in, regardless of your living situation, remember to stick to a budget, pay your bills on time, and leave a little leftover for savings.
Equal Housing Lender