Landlords typically aren’t involved in how roommates split rent. Under a joint lease, all tenants are equally responsible for the entire amount, and the lease will state that all tenants are responsible for the full rent. The breakdown of the specific portions that each roommate would pay is left up to the roommates to decide, usually in a roommate agreement.
Your only concern is that the full rent is paid on time, not how it is divided among roommates. However, to help your tenants out, you can offer assistance by educating them on different ways to split rent and direct them to helpful resources. In order to do that, you need to know how to split rent between roommates.
Table of Contents
- Comparison of methods to split rent
- Split rent equally
- Split rent by bedroom size and amenities
- Split rent by income
- Use Apartments.com to split rent
- Tips for renting to multiple tenants
Comparison of Methods to Split Rent
|
Method |
How It Works |
Best For |
Pros |
Cons |
|
Split Rent Evenly |
Rent is divided evenly among all tenants regardless of room size or income. |
Equal-sized rooms, comparable amenities, and similar income levels. |
Simple and easy. |
Can feel unfair if room sizes or amenities vary. |
|
Split the Rent by Income |
Each tenant pays a percentage of rent based on their income. |
Tenants with varying income levels. |
Promotes fairness based on financial ability. |
Requires disclosure of income by tenants. |
|
Split the Rent by Room Size and Amenities |
Rent is adjusted based on bedroom size and private features (e.g., ensuite). |
Apartments with unequal room sizes or private amenities. |
Even distribution of rent according to size and amenities. |
Doesn’t account for shared common areas. |
Split Rent Equally
Evenly splitting rent is the most straightforward approach for your tenants since everyone pays the same amount, regardless of their room size, income, etc. This method is best for arrangements where all the rooms and amenities are similar or if those details are not important to the tenants.
Split Rent by Bedroom Size and Amenities
Splitting the rent by bedroom size and amenities allows for a more equitable approach to the rent division. It ensures that the amount each tenant pays is proportionate to the space they are renting. To decide how much each person should pay, look at both the square footage of the room and any additional amenities that each tenant has.
Tenants with a bigger room and more personal amenities (private bathroom, private balcony, walk-in closet, private parking space, etc.) should pay more. In contrast, tenants with smaller rooms and fewer amenities should pay less. Each tenant’s share of the rent can be calculated using a rent-splitting calculator or this equation:
- (Tenant’s Bedroom Square Footage ÷ Total Square Footage of All Bedrooms) × (Total Rent) = Tenant’s Portion of Rent
Example of how to split rent by bedroom size and amenities
There is a three-bedroom apartment with a renter in each bedroom. This is the necessary information for the apartment:
- Total rent: $2,375/month
- Total square footage: 1,283 square feet
- Combined bedroom and private amenities square footage: 465 square feet
- Bedroom A: 190 square feet
- Bedroom B: 140 square feet
- Bedroom C: 135 square feet
You want to divide the rent proportionally based on bedroom size and amenities. Using the equation above, you would do these three calculations to get each tenant’s portion of the rent:
- Bedroom A: (190 ÷ 465) × 2,375 = $970.43
- Bedroom B: (140 ÷ 465) × 2,375 = $715.05
- Bedroom C: (135 ÷ 465) × 2,375 = $689.52
Split Rent by Income
Splitting rent payments by income is a more personalized approach because the price each tenant pays is tailored to their financial situation. In general, the high-income tenants pay a larger percentage of the rent, while low-income tenants owe less.
This approach helps each person pay what is fair according to their income, so no one is financially burdened. Using this method does require income transparency on the tenant’s part, which not all are open to. If your tenants don’t want to share their income with each other, then it is best to use a different method.
If everyone agrees to splitting rent by income, they can use this equation to find the percentage that each tenant should pay:
- (Tenant’s Monthly Income ÷ Combined Monthly Income of All Tenants) × 100 = Tenant’s Percentage Portion of Rent
Example of how to split rent by income
Suppose there are three roommates with the following monthly incomes:
- Roommate A: $4,955
- Roommate B: $5,174
- Roommate C: $5,515
- Combined monthly income: $15,644
Divide each roommate’s income by the total income, then multiply by 100:
- Roommate A: (4,955 ÷ 15,644) × 100 = 32 percent
- Roommate B: (5,174 ÷ 15,644) × 100 = 33 percent
- Roommate C: (5,515 ÷ 15,644) × 100 = 35 percent
As $2,375 is the monthly rent, then calculate each share:
- Roommate A: (32 ÷ 100) × 2,375 = 760
- Roommate B: (33 ÷ 100) × 2,375 = 783.75
- Roommate C: (35 ÷ 100) × 2,375 = 831.25
Use Apartments.com to Split Rent
The simplest way to split rent is by collecting rent on Apartments.com. All you have to do is set up one rent collection; you’ll enter the total amount of rent for the lease, add all your renters to that collection, and you’re done. From there, it is in your tenants’ hands to decide how they want to split the rent.
Once your tenants have chosen, each roommate will input their portion and schedule payments individually. Collecting rent from roommates has never been easier with Apartments.com.
Tips for Renting to Multiple Tenants
Anything can happen when renting to one person, so imagine all the unexpected situations that may occur when you are renting to multiple tenants. To better navigate and manage any situation that arises, here are some tips for when you rent to roommates:
Suggest tenants establish a roommate agreement
A roommate agreement details the rules, responsibilities, and expectations every tenant must follow. Each roommate signs the document to legitimize the contract. As a landlord, you generally have no direct involvement in creating this document. However, you can strongly encourage your tenants to write one as it fosters a harmonious relationship.
Here are some items you can suggest to your tenants to include in their agreement. Rules about:
- Borrowing other people’s personal belongings
- Sharing food
- Having guests over
- Deciding on what bills to share and pay for
- Cleaning and tidiness
- Deciding room assignments
- Dealing with noisiness
- How rent is split
- What happens if someone doesn’t or can’t pay
- How to handle move-outs or changes in income
Include a joint and several liability clause
A joint and several liability clause is a rule holding all tenants responsible for the rent. Even if one of your tenants doesn’t pay their portion of the rent, that doesn’t absolve everyone else. Your tenants are equally accountable to pay the total rent each month. Include a joint and several liability clause in the lease agreement and make sure your tenants understand what it means.
Have your tenants elect a representative
While not mandatory, encourage your tenants to vote or appoint someone as the primary representative. This individual will be your first point of contact regarding rental concerns, such as maintenance requests and rent payments. A person you can consistently speak to makes communication more accessible and fluid. The representative shouldn’t be responsible for all incidents, though. In situations where you cannot reach them, a secondary contact is beneficial.
Avoid dividing the security deposit
Before your tenants sign the lease agreement, let them know you will not divide the security deposit. Dividing the security deposit complicates legal and financial responsibilities on both you and the tenant’s part. Ensure they know when you return the deposit, they will only get it in one check. To eliminate any confusion, you should also specify this within the lease.
Require renter’s insurance
In a house full of tenants, renters insurance is more important than ever. This coverage can protect your tenants in case their personal belongings are damaged or stolen from the property or when accidents occur. When unexpected incidents happen, renters insurance means less weight and liability on your shoulders.
The best practice is requiring every tenant to have renters insurance so each roommate is fully protected. While some insurance companies allow roommates to share a policy, it is recommended each one has their own for clearer ownership, claims handling, and liability separation.
Carefully consider accepting partial rent payments
While accepting partial rent payments can help foster goodwill with a tenant, you need to navigate those situations carefully and decide if you want to allow it. It’s not a good idea to accept partial rent payments after rent is late or during an eviction as this can complicate matters.
Avoid getting involved in tenant discussions
For discussions and matters that are between roommates, you should let them resolve it. There is no legal obligation for landlords to mediate or get involved and it can cause issues if you do, such as risking your neutrality. Landlords can’t enforce anything that isn’t on the lease.
If a tenant comes to you to ask you to get involved in a roommate matter, politely decline and reiterate your role as a landlord and what that entails. Include a reference back to the lease agreement and how that outlines your responsibilities as a landlord:
"I understand this is a difficult situation, but as the landlord, I’m not involved in matters among roommates, like how rent is divided. My responsibility is to ensure the full rent is paid, as stated in the lease. I recommend finding or hiring a neutral third party to facilitate and mediate discussions."
Frequently Asked Questions
What happens when one tenant does not pay their portion of the rent?
When one tenant doesn’t pay their portion of the rent, the roommates must determine how to cover the missing rent or urge their roommate to pay it. Because of the joint and several liability clause, your tenants are still responsible for the missed payment.
What should I do if one of my tenants violates the lease?
If one of your tenants is breaking the lease, then notify them via a lease violation letter. Warn them about the rule they violated and what penalties they may incur if they break it again. If they continue violating the lease, it may be time to start the eviction process.
As roommates have usually signed a joint lease then both tenants can be evicted even if the issue is only with one of them. The innocent tenant may seek to negotiate with you to stay and sign a new lease.
How do individual room leases work?
Individual room leases are different from a joint lease as it has each roommate sign their own lease. These kinds of lease options are popular for student housing or co-living properties. Each individual lease signee is responsible for the rent that is dictated on their lease and others aren’t held accountable if a roommate fails to pay.
However, they are more work than a joint lease as you have to manage multiple leases, payments, and move-in/out schedules. Even if you only have a single three-bedroom apartment, it will feel as though you are managing three apartments because you have three leases. It also increases your workload as you have to dictate responsibilities for shared spaces, manage a higher turnover rate, and more.
