Listen to Living Together on a Budget
Listen/Read time 8m 9s
Living in a house share or living with friends comes with its own unique set of financial challenges. In this blog post we share some budgeting tips for tenants in shared houses, helping you to live together on a budget.
As with most things, clear and honest communication is key. At the start of the tenancy decide with housemates how you all want the financials to work. Be honest about income and outgoings and the standard of living you anticipate. Do you plan to live separately in the same house or will you share meals, drinks and entertainment? Will you buy budget or luxury brands?
It is a good idea to set up a shared household budget and expenses spreadsheet at the start. This will enable you to track what is being spent and how much each housemate is contributing. Regularly review the budget together to adjust expenditure and contributions as prices change.
How you split expenses is up to you. But it should be fair and it should be agreed by everyone. Rent in a house share is usually set by the letting agent and is split according to room size. With larger rooms or ensuite rooms demanding a slightly higher rent. Utilities and wifi is usually included in the rent. Friends sharing a house may choose to split the large bills differently.
Deal with discrepancies straight away. Letting them fester will build resentment and make the house an uncomfortable place to live. Be sure to pay your own contributions on time. We can all fall into financial difficulties from time to time so if you are unable to pay your share, tell your housemates straight away and work out a repayment plan.
You may choose to create a ‘house saving fund’ to pay for emergency expenses or even group night’s out. Establish guidelines for contributing to the fund and how and when the money will be used. Decide what happens to the fund if a housemate moves out.
An easy way to save money is to shop and eat together. Plan shared meals at the beginning of the week and shop for the ingredients as a group. You may like to take it in turns to actually go to the store.
If you prefer not to eat together, choose a cupboard or shelf where you can put shared items. If you have cooked extra of something or don’t like the biscuits you bought, another housemate can enjoy them.
If utilities are included in your rent you will likely be subject to a fair usage policy. Using more utilities than is ‘fair’ could cause your rent to be increased. If not, you will probably share the cost of the utility bills. Either way, you will want to encourage your housemates to switch off appliances when not in use. Remember to turn down heating when you can. And don’t leave taps or showers running.
Be mindful of electricity and water usage in order to save money or to prevent a rent rise.
There is no polite way to say this! A large part of being an adult is addressing your financial responsibilities appropriately. If you have committed to sharing financial responsibility for something then that should take priority over your personal ‘luxury’ or ‘entertainment’ spending. It is unfair to commit to paying for something and then not paying on time or paying the full amount. It makes you a poor housemate, a poor friend and a poor tenant.
If you have over committed and cannot afford your share, or your circumstances change, talk to your housemates and negotiate other arrangements. Do this at the earliest opportunity.
If some housemates have a higher income than the others you may find this is a source of conflict. Be firm about saying “No” to joint spending if it doesn’t save you money. And don’t shy away from suggesting that you stay in, rather than spending lots of money on a night out together.
The flipside of the previous point is to be mindful of the budget limits and preferences of your housemates. Open and honest communication is crucial in creating an environment where everyone feels comfortable discussing their financial boundaries. This understanding is important for a cooperative and harmonious living environment.
Equally important is the avoidance of pressure or judgment related to spending habits. Every individual approaches money management differently, influenced by their values, goals, and personal circumstances. It’s essential for tenants to embrace diversity in financial habits and refrain from imposing their perspectives on others. Creating a culture of mutual respect regarding spending choices fosters a supportive atmosphere, enabling everyone to navigate their financial journeys without unnecessary strain or judgment.
In shared households, financial disagreements can arise, and having effective conflict resolution strategies in place is essential for maintaining a positive living environment. Tenants should first try to resolve conflicts among themselves. As we have said previously, this involves open communication, active listening, and a willingness to compromise. Establishing clear guidelines for shared expenses and responsibilities will preemptively minimise financial arguments.
If conflict cannot be resolved among housemates, try asking a neutral third party to mediate. This neutral mediator can facilitate discussions, identify common ground, and guide housemates towards acceptable solutions. Knowing when to involve a mediator is key. If tensions escalate, a professional mediation service should help prevent conflicts from negatively impacting the overall living atmosphere.
It is important to work together to create an environment where everyone is comfortable about talking openly about what they can and can’t afford to pay for. Everyone has different financial boundaries with different spending, saving and investment goals.
Conflict is a natural part of communal living but mediation strategies should help. Even if that means bringing in a third part to oversee the negotiations.
Shared house tenants should keep their commitments to shared financial responsibilities. This way you contribute to the financial well-being of the house and create a supportive and respectful living space where everyone is listened to. Try to always build bridges of understanding, promote open communication and find ways to live in an harmoniously in your shared house.
For more posts about tenant budgeting see
Cooking, drying clothes, showering – even breathing – add to the moisture in the air. If this moisture is allowed to build up it can cause damp. This can increase the risk of respiratory illness and cause black mould growth on walls, ceilings, furniture and clothing. In this blog, we’ll get right into why this…
At New Mills Properties, we pride ourselves on providing unparalleled service to both tenants and landlords. Recently, we had the pleasure of facilitating a rental transaction that exemplified our commitment to efficiency and excellence. In just under 7 days, we successfully handed over the keys to a new tenant, from the initial inquiry to moving…
Listen to The Ultimate Guide to Deep Cleaning Your Rental Read/Listen 8m 24s Deep cleaning is the act of thoroughly cleaning your home from top to bottom. Traditionally carried out in the Spring, it is often called Spring cleaning. It is an ancient tradition, still followed by many people around the world. Iranians ‘shake…
