Money rules to agree on before you move in together
The best time to agree how you’ll split money is before the first bill arrives, when everyone is still excited and reasonable. Here are twelve rules to settle in one conversation.
Why write it down?
Flatmates rarely fall out over one big thing. It’s a hundred small ones: the AC bill, the guest who stayed a month, the milk. Agreeing the rules up front, even in a WhatsApp message everyone 👍s, turns future arguments into “we agreed X”.
The 12 rules
- Rent split. Equal, or by room size with premiums for extras. See rent by room size.
- Deposit. Split like rent, with a clear rule for early exits. See deposits.
- Who pays the landlord. One person pays on time; everyone pays them back by a fixed date.
- Electricity. Equal, or base + usage when someone has an AC. See electricity.
- Fixed bills. WiFi, maid, cook, maintenance, gas: who’s in for each, and how they’re split.
- Groceries. What’s shared (staples, milk, water) and what’s personal. See groceries.
- Guests. A guest staying more than a few nights a month pays a share of utilities and groceries. Agree the threshold (for example, 7 nights a month).
- Big purchases. Anything shared over ₹2,000 (a fridge, a sofa, a microwave) is agreed before buying. Decide what happens to it when someone leaves: usually they’re bought out at a fair second-hand price. See shared furniture and buyouts.
- Chores. A rotation for cleaning, trash, water cans and gas booking. See the chore wheel.
- Monthly settle-up. One fixed day a month (the 1st, or after payday) when everyone settles their balance.
- Notice period. Usually one month. If you leave without notice, you pay until a replacement moves in or the notice ends.
- Where it’s recorded. One shared place for every expense, so nobody keeps a private spreadsheet.
A template you can copy
Flat 302 rules (agreed 1 Oct):
• Rent ₹45,000: A ₹18,300 / B ₹13,350 / C ₹13,350. A pays landlord by the 5th, we pay A by the 3rd.
• Deposit split same as rent. Early exit: new person pays your share.
• Electricity: equal Oct–Feb, base + AC Mar–Sep.
• WiFi, maid, gas: equal. Cook: by meals.
• Guests: more than 7 nights/month = share of bills.
• Settle up on the 1st, every month.
• Notice: 1 month.
• Everything goes in ttmm.
Review it after a month
The first month always shows what doesn’t work. Spend ten minutes on the 1st of the second month adjusting the rules. After that, they mostly run themselves.
Questions
What should a roommate agreement include?
Rent and deposit split, who pays the landlord, how each bill is split, guests, big purchases, chores, a monthly settle-up date and the notice period.
Do flatmates need a written agreement?
It doesn’t have to be formal. A message everyone agrees to in the group chat is enough for most flats.
How should guests contribute?
Agree a threshold, for example more than 7 nights a month, after which the guest’s host pays a share of utilities and groceries.
