Tips For Managing Roommate Finances
Matt Perkins • October 26, 2020
College apartment life can sometimes be a challenging journey, especially when you have to share an apartment with other people - whether that apartment is in State College or any other college town. This means that everyone needs to take responsibility to manage shared finances. No matter your friendship's depth with your roommate, sharing expenses has to be a mutual thing.
Sometimes, you may feel uncomfortable to inform your roommate about bill sharing, or maybe you are the type that pays the bills without minding any support. You'll get overwhelmed with the bills at some point, and that's why sharing comes in-handy.
Bill sharing comes with many benefits. For instance, you won't have to struggle to pay all bills. Another benefit is that you'll clear your bills on time and avoid awkward situations that can arise due to late payment. Here are tips on how to ensure that you and your roommates share bills with ease.
Make Everything Clear Before Moving in Together
When you assume that your roommate for your State College apartment knows just what to do when sharing bills, you may be disappointed because it can turn out the opposite of what you expected. That's why it's crucial to have an open conversation to set the record straight and avoid confusion after moving in together.
As you discuss the expectations, you'll be able to find out the status of your potential roommate and the ability to pay the bills on time. Below are some questions that both of you need to clarify and make sure that you are in complete agreement.
• How is your payment schedule? Is it regular or periodic?
• How should we divide all expenses?
• Are you able to clear your bills on time?
• Do you have a fair and consistent income to pay for the bills?
• Can you manage finances responsibly?
• What are the types of expenses you think each has to take responsibility for?
• How do you make payments? Automatic or manual?
• How can we save some money aside for emergencies?
The questions give you clear expectations about everything you need to know. This will help you plan well before moving in and also prepare your roommate about what to expect. Doing this will help you avoid unnecessary confrontation.
Create an Expense Sharing Monthly Budget
At this point, you need to split bills to know who will cater to what. It would be best to remain careful and considerate when sharing the expenses. It needs to be equal. In most cases, it’s important to come up with ground rules when splitting the bills.
To start, write down the list of expenses you plan to share. Let each item have a clear indication of who will pay for it and how to clear the bills. Here are the essential expenses to put on your list.
• Rent or mortgage
• Water bills
• Maintenance costs
• Entertainment
• HOA fees
• Toiletries
• Bulbs and batteries
When you stay organized with your bills, you'll be sure of staying in synch with your roommate. You may want to discuss some other things with your roommate that may not be part of the shared expenses. Such things include furniture and other essentials.
Find out if your roommate prefers sharing such extra expenses or if each should get the items individually. Don't forget about sharing grocery expenses if you plan on sharing food.
Define How You Want to Manage the Finances
Although everyone needs to have a part to play, it's always wise to designate different responsibilities to each person to know what you're expected to deliver.
Even if you create a good plan to manage your expenses, it may not be easy to decide who to manage the finances. For the best outcome, you can choose to let each one make payments from individual accounts, or designate one person to collect money from everyone, put it together and clear the bills.
Alternatively, you can decide to contribute the pre-planned costs on a shared account and pay bills from there. No matter how you choose to do it, it would be best to be careful because each system has its pros and cons. You may also want to use online tools such as splitwise or Venmo that can help you to manage your finances with ease.
Create a Cost Spreadsheet
A cost spreadsheet will help you and your roommates know what each one is expected to pay. Ensure each item includes the due date, total fees to be paid, and the person responsible. If possible, make it a habit to have a monthly meeting to put the record straight. This will get each one prepared to pay the bills on time.
You may also want to make a personal budget to help you know what you're expected to pay. Let your roommates do the same too. It gets easier when everyone is responsible enough and does what is expected without other roommates' pressure.
Once you have the spreadsheet, keep up with close reminders so that each one prepares within the month to clear the bills on time. The worst experience would be paying your bills on time as expected while your roommates do not do the same. So, you may want to set up notifications and a planner to keep everyone reminded about the due dates.
Discuss in the Month to Keep Everything in Check
Communication is a critical factor between roommates. Some assume that since each one is aware of what is expected by the end month, everything will fall in place. That's never the case, and in most cases, it ends up making the matter worse. So, get proactive about money conversations.
That's why it's advisable to create a monthly schedule on specific dates to discuss with your roommate on matters shared bills. It could be in the middle of the month and towards the end of the month. If possible, set a meeting reminder and make it an official meeting for everyone to attend. Never assume that everything is in order until you communicate.
Be Careful with Your Roommate Choice
Peace is a crucial factor when you want to soar in your academics. You don't want anything that will get you distracted and disturbed. That's why you need to choose your roommates wisely. When your roommates fail to pay bills, it can be so frustrating emotionally and financially. Not to mention the effect you'll have on your credit card if you fail to pay your bills on time. Therefore, be very careful when choosing who to share a State College apartment with.
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Smart, Stylish, and Stress-Free Guide To State College Apartments
As thousands of Penn State University students embark on the journey of finding their perfect State College apartment, the process can seem daunting, especially for those navigating this terrain for the first time. To shed light on this critical transition, we spoke with Matt Perkins, the General Manager at Nevins Real Estate Management in State College , who has been assisting students in finding their ideal apartment in State College for years. Establishing a Budget: The First Step "One of the most significant steps a student can take when entering the off-campus housing market is to establish a budget they're comfortable with," Perkins emphasizes. This initial step is crucial, especially for students who might have financial support from parents or guardians. "The State College apartment market caters to a broad spectrum of budgets. However, without a clear budget, students can quickly become overwhelmed by the options," Perkins says. This piece of advice serves as a cornerstone for students to begin their housing search on solid ground, ensuring they live within their means and avoid financial strain. Location and Price: A Balancing Act When selecting an off-campus apartment, Perkins recommends that students consider the location carefully. "The closer to campus you are, the higher the rent will be. If you're willing to take a bus or endure a longer walk, you might find more affordable options." This advice is vital for students to balance their desire for convenience with their financial realities, possibly leading to significant savings over time. Navigating the Application Process "The application process varies between management companies in State College," Perkins notes, advising students to contact management companies directly to fully understand application requirements. This proactive approach can smooth the path to securing an apartment, preventing last-minute hiccups that could jeopardize their housing plans. Lease Agreements: Read and Understand A critical aspect that Perkins highlights is the importance of thoroughly reading lease agreements. "Students often overlook key clauses. It's essential to understand what you're signing, as these clauses protect all parties involved." He underscores that lease terms are rarely negotiable, so understanding and accepting these terms before signing is paramount for a happy rental experience. Effective Communication with Landlords To address issues like maintenance requests, Perkins advises following the management company's set procedures. "In cases where your initial request isn't addressed promptly, don't hesitate to follow up," Perkins says. This approach ensures that concerns are dealt with efficiently, maintaining the quality of the living environment. Security Measures: Stay Alert Don't overlook the importance of security for students living off-campus. "Be aware of your surroundings," Perkins emphasizes. "Problems often arise from non-residents. Being cautious about who enters your apartment is crucial for your safety." This advice is a reminder of the shared responsibility in maintaining a secure living environment. Creating a Comfortable and Personalized Living Space Living off-campus offers a unique opportunity to create a space that reflects your personal style and meets your needs. Unlike the often restrictive rules of dorm living, off-campus apartments allow for greater freedom in decoration and customization. Embrace this opportunity to make your apartment feel like home. Invest in comfortable furniture, plants, and personal touches that inspire relaxation and productivity. However, always be mindful of your lease agreement's terms regarding modifications to ensure any changes you make are permissible. Engaging with the Community Living off-campus doesn't mean you have to be disconnected from the vibrant Penn State community. Take advantage of the numerous events, clubs, and activities on campus. Additionally, explore State College itself, which offers a variety of local shops, cafes, and community events. Engaging with both the university and local community can enhance your college experience, providing a well-rounded social life beyond academics. Managing Living Expenses One of the realities of off-campus living is the need to manage living expenses carefully. Utilities, groceries, and other monthly expenses can add up quickly if not monitored. Perkins suggests setting up a budget for these expenses and sticking to it. Consider using apps or spreadsheets to track your spending and identify areas where you can cut costs, such as opting for more energy-efficient appliances or cooking meals at home rather than eating out. Building a Supportive Living Environment For many students, living off-campus means having roommates. This arrangement can be a fantastic way to share expenses and create a supportive living environment. To ensure peace, it's crucial to establish clear communication and set shared expectations early on. Discuss topics like cleaning responsibilities, quiet hours, and guest policies to avoid misunderstandings. Remember, effective communication and compromise are key to a positive roommate relationship. Safety First Lastly, never underestimate the importance of safety in your off-campus living situation. Perkins's advice to be aware of your surroundings is especially pertinent here. Take proactive steps to ensure your State College apartment is secure, such as using proper lighting outside your apartment, not letting strangers into your building, and keeping your doors locked. Familiarize yourself with the local emergency services and campus resources available to you in case of an emergency. Living in an off-campus State College apartment presents an exciting opportunity to grow independently, create a personalized living space, and engage with the broader community. By applying the insights shared by Perkins and adopting a proactive and responsible approach to your living situation, you can make the most of your off-campus experience. Enjoy the freedom, embrace the responsibilities, and make lasting memories during your time in State College.
You don't need to break the bank to live the good life in Happy Valley