rooms to rent Manchester

Setting a Budget and Sharing Costs with Your Roommate

When renting a property with someone else and have to share the costs, it is important that you know the monthly outgoings and come up with a system to help you pay the shared bills. You could land in a world of trouble if you don’t, even if you paid your share of the rent on time.

If your bills aren’t paid, vital services like the phone line and heating may be cut off. You may also end up with a bad credit rating, which makes it difficult to borrow money. In the worst cases, failing to pay for the TV license or Council Tax could lead to court summons.

In many cases, involved parties will have signed an agreement holding them accountable individually and together for certain costs. Some of the typical bills to budget for include gas and electricity bills, TV license, landline phone bill, council tax, water bills and contents insurance.

It is a good idea to sit down with your roommates at the start of a flatshare in Manchester and work out a fair system for sharing the costs. Write down a list of the shared bills, estimate how much they will be each month and work out a method for dividing them so that everyone pays their fair share. Drawing up a spreadsheet that outlines what everyone needs to contribute towards paying the bills can help a great deal.

When finding rooms to rent Manchester one simple way to pay your bills is direct debit, but you can also collect the cash from the rest of the roommates and make payments at the bank or post office. The downside to the second method is that it could result in late payments since it relies on everyone being organized.

If paying by direct debit, consider nominating one person to be the designated bill payer. They will make the payments from their personal account and everyone else will set up a standing order to pay their share into the account of the nominated bill payer every month a few days ahead of the deadline. You can also open a joint account and this means being financially linked to the credit rating of anyone you share the account with. Take this approach only with people you trust.

Always make sure that the Council Tax and TV License bills are paid first as these could have immediate legal consequences. Talk to the landlord immediately if you don’t think you’ll be able to pay the rent on time.