When I moved into my first 海角社区官网apartment with two friends in my second year of university, we were so thrilled to have our own place that the idea of a roommate agreement didn鈥檛 even come up. The three of us signed the lease, decided who would take what bedroom and that was that. We didn鈥檛 realize that we were setting ourselves up for a year of drama that ended with two of us almost not getting our $500 security deposit back. Since then, I鈥檝e learned the importance of establishing financial (and personal) boundaries up front when it comes to living with others.
The last census in 2021 found that roommate households grew faster than any other housing arrangement, particularly among those aged 20 to 34, since 2001. Fifteen per cent of Canada鈥檚 population between those ages reported living with roommates.
For everyone to peacefully coexist in the same home, it鈥檚 key to establish rules and boundaries around bills, groceries and more. Here鈥檚 how to set yourself up for success.
Understand the difference between tenants and occupants
A tenant聽has a direct relationship with the landlord. The Residential Tenancies Act (RTA) protects tenants from unlawful evictions, provides rules around rent increases and allows them to make applications to the Landlord and Tenant Board (LTB). A tenant is responsible for all rent and any damage to the unit that they or their guests or roommates may cause.
The most common arrangement landlords use when renting to two or more adults is a joint lease, where all roommates are included as tenants on the lease agreement. In this situation, every tenant on the lease is equally responsible for all of the liabilities and responsibilities of the tenancy, including the full rent and any damage that occurs to the property. That means if one tenant fails to pay up, the other tenants are on the hook.
This is the situation one roommate and I found ourselves in when the other moved out a few days before us, leaving her bedroom in shambles. Our landlord threatened to keep our security deposit for cleaning fees, but thankfully, he took pity on me and my other roomie and gave us back our portions.
Brian Houghton and Beth Legge, housing experts at Pro Bono Ontario, a registered charity that provides free legal services, say the organization receives a lot of calls from clients who have been ordered by the聽Landlord and Tenant Board to pay arrears for聽rent or damage caused by former roommates even after the client has moved out.
The other key term to know is occupant, which refers to someone who lives in a rental unit with the permission of a tenant but has no direct contractual relationship with the landlord.聽According to the Landlord and Tenant Board,聽an occupant can reside in a rental unit without the consent of the landlord as long as the tenant also resides in the unit, and as long as it doesn’t become overcrowded. The tenant would be on the hook for any damages caused by occupants.
The distinction is important for roommates to understand because being an occupant means missing out on聽protections provided by聽the Residential Tenancies Act, says Lee Webb, director of client services at the Canadian Centre for Housing Rights (CCHR).
If a tenant wants to evict an occupant, they don鈥檛 need an order from the Landlord and Tenant Board. The occupant can sue the tenant in small claims court if they believe they were evicted unfairly. The LTB, on the聽other hand, can prevent an eviction or order a tenant be let back into a unit if they were illegally locked out聽鈥斅爋ccupants don’t have that protection.
Consider checking with your landlord before allowing anyone to move in with you to make sure you’re not violating the terms of your lease.
Discuss how to divvy up shared expenses fairly
In most situations, roommates choose to split rent equally, but it may make sense to split the rent based on space. For example, if one roommate has a much larger bedroom than the others, they may agree to pay more rent. It’s up to people’s values and whether they value the ease of administration over being particular about financial fairness, Webb says. There are rent-splitting calculators online that take room size, amenities (like a private bathroom) and other factors into account.
The next thing to discuss is how utilities such as electricity, water and internet will be shared and paid for. Shannon Lee Simmons, fee-only financial planner at The New School of Finance, says a key part of this conversation is figuring out who鈥檚 most comfortable putting these bills in their name. She says it鈥檚 a good idea to decide this up front so bills are聽paid on聽time. 鈥淲hen too many cooks are in the kitchen, things get missed,鈥 she says. Decide who鈥檚 responsible enough for this role and ensure they鈥檙e comfortable with it 鈥 whoever聽takes on the role will have some administration duties, and bills can potentially have an impact on their credit score. When creating the roommate agreement, discuss聽what will happen if someone is unable to pay on time and who will cover their share in the meantime.
Simmons suggests creating a shared online document that all roommates can access and use to track expenses. For example, when the hydro bill comes out, the roommate with the bill in their name can update the document with the cost for that month, how much each roommate owes and the due date.
Webb says the CCHR often fields calls from frustrated roommates regarding changes in utility usage. It typically comes up when one roommate has a partner come and stay for a while. 鈥淭hat is an example of when a good roommate agreement could really help,鈥 Webb says.
Outline rules and shared costs in a roommate agreement
A roommate agreement is a legally binding contract that should include who the parties to the agreement are, how much the occupant(s) will pay in rent, what is included in the rent (bedroom, use of common areas, etc.), how utility expenses will be split, etc. It should also include emergency contacts, and what happens if one party wants to move out (or move someone else in), and day-to-day considerations like quiet hours.
鈥淚f you are thoughtful and patient with the agreement, and you are comprehensive, then it can really help resolve a lot of problems later on because you could point back to the agreement and what everybody thought was fair,鈥 Webb says.
You can find examples of roommate agreements online, Webb says, including from some Canadian universities that are geared toward students.
A verbal or text-message agreement is just as legally enforceable as a formal contract, say Houghton and Legge, but a written agreement can provide more clarity. Written agreements are also more helpful years down the line when you’re trying to remember what you initially agreed to. The terms of a verbal agreement are also harder to prove in court if things go wrong.
Know how to resolve disputes
If a disagreement comes up, whether it鈥檚 over someone using up all the milk or being late on a bill payment, Webb recommends having a clear, open and respectful conversation with your roommate. 鈥淯nderstand that they are probably seeing the situation from a different perspective and try to come up with a solution that respects everybody’s interests,鈥 he says.
If you can鈥檛 reach a resolution right away, consult the roommate agreement to see if it lays out a solution. If the roommate agreement doesn鈥檛 provide clarity and all roommates are included as tenants on the lease, you may want to involve the landlord to try to figure out how to resolve the issue.
If the issue is that someone is late with rent because they鈥檙e short on money, Webb points out that the may be able to help. The maximum grant they can provide for rental arrears is $5,000.
If you can think of a potential future conflict, it should probably go in your roommate agreement, Webb says. That said, there’s a tradeoff between completeness and fairness, and how easy it’s going to be to administer. 鈥淭here can become a point where it’s too much to consider and it’s too complex,鈥 he says. But including potential sources of conflict in your roommate agreement will help you later on if there is an issue. You can always amend it, too, if something comes up that isn’t covered.
Without any kind of formal, written agreement, I had more than a few聽strained conversations around boundaries with my roommates. I once discovered a cherished plate from my grandmother being used as an ashtray on one roommate鈥檚 balcony, and later saw makeup of mine that had been missing in her room. An agreement that clearly stated each others鈥 bedrooms and belongings were off limits probably would have helped us avoid a whole lot of tension and stress.
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