Every relationship, when serious enough, comes to a point where couples start mulling over the idea of moving in together. Whether it’s in the beginning stages where love takes over mind or the traditional after marriage route, splitting the financials of owning a home or an apartment could become a messy situation — especially if the significant other owns the home.
Fifty-one percent of people said they would charge their significant other rent to move into the property they own, with nearly 60% of women saying they would charge rent to their significant other, according to a survey.
TurboTenant conducted a survey of 1,000 consumers to see how people approach life-changing events, specifically when moving into a home as a couple transitions from a possibility to a reality. While more than a third (34%) said they would want separate rental agreements when moving in with a partner, different generations have different standards as to whether they would charge their significant other rent.
Sixty percent of respondents in the 45-65+ age range said they could take a conservative route with their finances, responding “yes” to charging their significant other rent if they owned the home. But Millennials, despite encountering financial stressors like student debt, seem to be more relaxed compared to other generations.
More than half — 63% — of Millennials said they would not charge their partners rent to move in, which might be a reflection of today’s current financial climate.
When it comes to splitting expenses as an unmarried couple, there are a few ways to approach this situation by setting up guidelines, according to the survey.
Tenant in Common Arrangement
One way is setting up a tenant in common arrangement. The legal agreement allows both partners to own the property together, which basically sets up each partner with a different percentage of the property while disallowing them to have their partner’s percentage. However, that could become complicated if love fades because shares can be sold.
Divide bills based on usage
Is someone watching too much TV while the other reads in the next room? Maybe someone is binging on Netflix while the other uses the gym more often? Each partner should evaluate their hobbies to equally split bills if the other isn’t using them as frequently.
Split expenses 50/50
Pretty simple. Each partner carries the same burden.
Recognize each other’s strengths and weaknesses
Traditional husband-wife roles have changed drastically over the last 50 years. If someone is in a better financially-paying job but spends fewer hours around the house due to their work life, maybe the other partner needs to allocate more time to handle the chores — and even kids — while their partner is gone. Find each other’s values and contributions that make a living situation better.
Adjust pay based on a ratio
If someone makes more than someone else, it doesn’t exactly help to have someone pay equally. Instead, find a ratio that is equal for both parties, where essentially you both pay the same out-of-pocket but on a different wage scale.