The real estate prices are escalating beyond control in almost all the major cities in the world. You have example of cities like San Francisco, Los Angeles, and New York, where taking rooms for rent is an expensive affair. Under such circumstances, people do not have any option other than choosing shared accommodation. Shared housing is advantageous in many ways. Read on to know more about how living in a shared apartment can help you financially.
Before proceeding further into the matter, one should understand the concept of shared housing and the costs involved in sharing accommodation. However, we shall look at the costs of renting a private apartment to know more about saving money while sharing accommodation.
Costs involved in renting an entire apartment
People generally look for an entire apartment when searching for rooms for rent. However, taking an entire apartment on rent requires substantial expense. Here are some of the standard costs you incur when renting an entire apartment.
- You have to pay the monthly rent all by yourself.
- The landlord or house owner can also ask for a security deposit that could go up to two months of rent.
- Application Fees, Insurance, Credit Check Fees,
- Generally, entire apartments do not come in furnished condition. You have to either shift your existing furniture or purchase new furniture. Both of these cost a lot of money.
- When you rent an entire house, you have to pay the utility bills. It includes water, electricity, sewage, WiFi, gas, again all by yourself.
Now, let us look at the expenses you incur in a shared apartment and know more how it saves you a lot of money.
Shared Housing Concept
The shared housing concept is such that more than one tenant shares the apartment. Each tenant has an individual room that at times, can include a separate bathroom. Some houses have larger rooms that can accommodate more than one individual. Under such circumstances, you share bathrooms as well with your roommate. Besides, the house has common areas shared by all the occupants. These common areas include a kitchen, dining hall, terrace, and the living room. Each tenant will have a private key to the apartment. Apart from this key, he/she will have the individual key to the place that the tenant occupies.
Costs you incur when you share accommodation
- Application Fees, Insurance, Credit Check Fees doesn’t get split but those are the smallest denominators.
- Rent split between all the roommates, usually depending on the room type
- There is no need to pay a security deposit all by yourself. Just pay your share.
- Usually, shared accommodation comes with furniture. Hence, you also benefit because you do not have to purchase new furniture or shift your existing furniture.
There are two significant advantages of opting for shared housing. One is that you save on the financial front. Besides, you are free to move out of the house at any time if you have that covered in your lease. You only pay for the duration of your stay. There are no hassles about requesting a refund of complete security deposit. Just ask for what you paid.
Sharing accommodation through co-living has another advantage as well. You do not have to worry if the other tenants do not pay rent or not. It is not the case if you bring a roommate to share your room. Under such circumstances, you divide the lease between you and your roommate. If he/she does not pay the rent, you have to compensate and pay the same if you do not wish to face eviction by the landlord.
You have to compromise on sharing the common spaces. Other than this disadvantage, private and shared rooms for rent are financially beneficial to you as compared to an entire apartment.