Friday, October 11, 2013

We're Getting a New Housemate

Remember when our housemate (let's call her "N") gave notice that she was leaving at the end of October? About that...it turns out she and her boyfriend ("C") are open to the idea of moving in here. We'd all talked about it before, but the general thought at the time was that it might be too crowded. Well, after some consideration, C and N decided that $400 in rent split between two people sounds like a pretty good deal, and we'll have four people living under our roof come December 1st. I'm both excited and a bit apprehensive about the change. Let's run through the pros and cons, and maybe you readers can help me decide if this is a good idea or not.

The Pros
  • "C", despite being a Cleveland Browns fan, is a genuinely cool guy. Plus, we get to keep "N" as a housemate now. Sure, we will have two people to live with, but we know they are good people. Who knows what the next renter will be like?
  • While Mrs. DB40 is in Peru, there'll be more people to hang out with at the house. As someone who works from home and has a tendency to be a homebody, this is a real plus.
  • There will be one extra person in the house to give rides to the airport, help out with home improvement projects, watch the dogs when we leave the house or take a trip, and to help clean up.
  • While the rent for the room isn't increasing, C will pay for an extra share of the utilities. So Mrs. DB40 and I will only have to pay for half of all utilities, rather than two-thirds.
  • We won't have any vacancy, and we won't have to clean, paint, or advertise the room.
  • We really like N and C. We hang out regularly now, and we'll all spend more time together.
The Cons
  • Our house is only 1275 square feet, so four people sharing the space is a bit tight.
  • Utilities, while split fifty-fifty between couples, are bound to go up a bit, lessening the benefit of an extra person.
  • Our current roommate was barely ever here before, netting us income without really having any of the downsides of sharing our space. Now the opposite will be true: instead of N sleeping at her boyfriend's house most of the time, every night they'll both be here.
  • Mrs. DB40 usually makes the kitchen table her desk to do school work, since I'm often taking work calls in the office during the day. With four people living here, that arrangement may or may not work out, since more people will be in the common areas making food, watching tv, etc.
  • The common areas are about to get real cozy real quick, along with the refrigerator, the food cabinets, and the garage. 
  • We really like N and C. Living with friends carries the risk of ruining a friendship.
The wheels are set in motion because months ago we'd offered to have C move in, rather than N moving out so the two of them would get a place of their own. Now that they're on board with the idea, neither of us feel we can really change our minds at this point.

And if I'm being totally honest, Mrs. DB40 is more supportive of the idea than I am. (Though, at worst, I'd say I am on the fence. I am not really against the idea.) I think it might work out great and the timing is pretty good, since I am by my lonesome a lot these days. But from a financial perspective, this decision doesn't make a lot of sense. We're adding another person into our home for a very small gain in income: maybe an additional $50 a month plus the cost avoidance of having the room empty for a month ($400). I guess the flip side of that is we're helping our friends live cheaply; and if helping others live frugally isn't the point of the blog, then what is?

What do you think, readers? Is this a colossally dumb idea, or a savvy way to keep a good renter?

*Photo is from turkeychik at Flickr Creative Commons

43 comments:

  1. There's no right or wrong here, just what works for you. Me, I'm a loner...a rebel. :) OK maybe not a rebel but I like lots of quiet, the place to myself, knowing what to expect. I think that's kind of a slight problem actually because...well someday I'd like to be living with a husband! I would have a hard time with it, but that's just me! I hope everything works out great for you and hey, the extra money does kick ass!

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    1. Hi Tonya!

      I hear you: there are definitely days that I want to be on my own. But, in general, I'd rather live with people (most of the time). And like you said, the money isn't too shabby. :)

      Have a good weekend!

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  2. I think it was really nice of you to offer to have C move in. I think the possibility of getting an unreliable tenant in if N left was a bit of a scare, and I don't blame you for that. However, when my boyfriend and I were looking for apartments, the double occupancy rate was $100-$150 higher. We were mostly looking at places where rent included utilities, though.

    Considering N will be home more often, you may want to up the price just a bit more than you have. Or see how it goes for 2 months, and if the utilities go up a bit, discuss it with them. Additionally, I heard from a lot of landlords when we were looking that there's always the potential for fights and breakups. Since they're your friends I'm guessing you know they are solid otherwise you wouldn't have taken them in.

    I hope everything works out well, though. If anything, maybe they will feel like it's not a right fit and move out saving you the trouble (if things turn out to be too crowded). Or C and N might spend more time outside of the house than you think!

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    1. Hi EM,


      Yeah, maybe an increase in rent wouldn't be out of the question. We've kept it at $400 for the last three years. :)

      I think we'll take your advice, see how everything sorts out (esp. with the utilities) and see how it goes. If it's not a great fit, I think we'll all probably come to the same conclusion.

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  3. That's a tough one. It would be hard for me but not impossible to share my home with another couple. I think you can definitely do it as long as you have open communication and are willing to work together, which it seems like you are. :)

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    1. Yeah, it might be a bit of a challenge. I suppose we're just used to sharing space but, it has been a few years since we've had more than one extra person under the same roof.

      Congrats again to your new additions, too! I bet you'll get along great with your two new roommates. :)

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  4. Wow, I don't think I would do it because I like my space. That's too many people in one space.

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    1. Yep, we're definitely a little different when it comes to our living arrangements. Different strokes.

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  5. I would have to be really destitute to get to the point where I would share my home with another couple. In fact, before we moved out of our one-bedroom and into a studio, one of the ideas was to get a roommate for a two-bedroom apartment, but I was adamantly opposed. I like having our own space, and not having to share or be polite or remind someone to wash their plates... I really don't see how this arrangement benefits you at all since you're adding an extra person for no real monetary benefit.

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    1. Yeah, these questions about where and how to live are usually pretty personal decisions. Things would have to be pretty desperate for us to consider living in a studio, for example. Like with most things, different strokes for different folks.

      Though I agree with you on the monetary front: this doesn't seem to be a win for us financially.

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    1. Hi Nick! I agree: at this point it's probably best to confidently move forward and just see how things play out. My guess is, as usual, things will be just fine.

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  7. Hopefully everything goes well for you. I'm not sure how fall is going to be for you living with a Browns fan. As a Packer fan, I don't know if I could share a living space with someone who roots for the Bears or the Vikings, lol. Maybe the Lions, but only because they've had so many bad seasons that I feel bad for them. :)

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    1. You know, it's not that weird seeing the Browns do fairly well, like it is with you and the Lions. It's like seeing your loser younger brother finally hold down a job, learning how to bathe and shave himself properly, and find a girlfriend for once. You can't help but root for the guy.

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  8. I definitely think you should up the rent because of the additional person using the common area. (See my formula! http://www.evolvingpf.com/2013/04/how-to-price-a-room-for-rent/) Our house is the same size as yours and it's hard to imagine 4 people sharing the kitchen and living area. If you're apprehensive, increase the rent to where you think it would be worth it to you and see if they accept. You could also sign a shorter-term lease and you could all agree to re-evaluate at that point. I think it's going to be a pretty big shock to go from a barely-there roommate to a full-time couple.

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    1. Hi Emily!

      You may be right -- there could be a shock. I bet we'll adjust over time, as that's kind of our pattern, but who knows. Thanks for the link to the article -- I'll have to check out the formula.

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  9. It's probably easier for the Mrs. to be so gung-ho when she's so far away! I'd be scared that they'd be wanting to get all amorous all the time. Which would be normal. But just incredibly awkward. I feel awkward even bringing it up. But the pros are good, too...especially the fighting the loneliness part.

    But, seriously, who cheers for the Browns?

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    1. He's from Cleveland, though I don't know if that's a good enough an excuse. :)

      Good point: it's easy for the missus to be in favor of the idea when she's on another continent. As for the amorous bit, I like to think of them as asexual buddies who just happen to sleep in the same bed.

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  10. That's a lot of people in a 1200 sq foot house. It's a great deal for them because they get the same usage for two people what you would charge for one.
    Have you ever thought of converting your garage to a rental for more privacy but still generate income.

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    1. It's definitely a good deal for them. Back when the missus and I were dating in California, we'd do the same thing: rent a room in a house (rather than get a 1 bedroom of our own), so our dog could use the yard and we'd get the benefits of a larger living room, kitchen, etc.. We always thought it was a better option for us, so giving the deal to another couple seems like a nice thing to do.

      We actually have thought of converting the garage as it's a separate structure, but the costs for running drainage plumbing (and the rest of the conversion) likely don't make for a great ROI.

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  11. Perhaps you could share some of your thoughts with N and C, even your fears of what the setup could lead to in terms of the friendship and all that. Then maybe agree that at the first sign that things are not working out, you all are going to have to amicably settle on what next best step to take. I don't know for sure really because I thought the size of the place would be able to accommodate all four people but then I haven't yet had anything similar to this in terms of experience.

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    1. Jen, you took the words out of my mouth. You guys are all grown ups and friends, so having a grown up "discussion" about how sharing the space is going to go seems pretty reasonable.

      My friend's brother unintentionally moved into my friend's house over a year ago. Now my friend can't get him to leave, and his brother's girlfriend is over almost all the time - bro kindly gave her a key. My friend gets home and hides in his bedroom because he doesn't want to disturb their "dinner and a movie" in the kitchen/living room. It sounds super awkward. Don't let this happen to you!

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    2. Good advice, Jen & Mrs. Pop. We've had a discussion about what some of the issues might be, but I think another candid talk about some of the worries (tension over noise & common areas, worries about impacts on the friendship, and how we'd resolve it if it came to a head) is a good idea. Thanks!

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  12. I think it could work out really well, but I'd make a "pact" of sorts beforehand that if things start to get testy on a regular basis, that they'll agree to move out quickly in order to save the friendship

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    1. Thanks, Laurie! I agree that having an understanding ahead of time is a good idea to preserve the friendship.

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  13. I definitely would raise the rent. Too bad you didn't say that when N was planning to move. "Hey N, if you'd rather not move, C can move in with you for only an additional $100 plus utilities." You may end of hating each other for the first several months, as being in close quarters gets annoying, but if you can hang in there, living conditions should become routine.

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    1. That would have been nice, but at this point I would rather just not make things awkward re: price. I don't care that much about the extra money, per se. I do like the idea of not having to prep the room, advertise it, meet various renters and try to decipher if they're going to be good housemates after knowing them for 30 minutes...it's a bit of the "devil you know" scenario.

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  14. I agree with the others with possibly raising the rent slightly, just because they take up more communal space. Otherwise, I think I would have done the same thing since it helps solve the convenience and getting familiar predicaments you mentioned. Perhaps it can even mean more convenience if household duties like cooking, cleaning, etc. are split amongst 4 people/2 couples!

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    1. Hi Anna! We may end up asking for a little more rent if we can figure out a way to go about it without it getting awkward.

      C and I hung out last night and today, and I think it'll be a great fit from a cleanliness & cooking perspective. Right now I'm usually the only one that cooks and it turns out C is the same way...so now we'll have two guys cooking the meals for the ladies. He's also a clean freak about the kitchen, so it'll be nice to have the place be a little neater.

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  15. A unique and creative approach to increasing income, increasing your savings rate, and paying off your mortgage. I like that you had a housemate to start with and I don't think you'd be willing to let the boyfriend move in if he wasn't on the up and up.

    It's all about effective communication in this situations and as we have seen from your superb negotiation tuts, I would bet things turn out great. Good luck!

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    1. Thank you, Emily! I definitely think that, while a small benefit, things will get better from a financial perspective after C moves in. And yeah, we get along well. Thanks again for your kind words!

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  16. Ah, this is indeed a difficult situation to be in, and clearly the decision shouldn't be made on financial gains in the end because it's pretty obvious that you're not going to earn (or save) a lot more in the future from this arrangement. However, I do believe that having somebody who trust, know and especially like as a housemate is extremely important and even though things will get a bit more crowded, it will also be more fun, unless you're the really private type of person.

    Back in the student days I was renting a single room (not bedroom, single room!) apartment and at one point we were three people living in that 270 sq ft room and that lasted for two months. It was crowded but still an extremely interesting experience (which I wouldn't repeat now, but back then made sense). So anything is possible as long as you like the people you're sharing your house with and it always can get more crowded! :)

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    1. Hi C,

      I have to admit I'm still holding on to my younger days, as we don't have kids and having roommates, to me, still seems fun. It's nice to have people around to crack open a beer or share dinner with. Things will probably change in a few years but for now I think it works.

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  17. Well since you already rent out the space to N and know both N and C, it seems like it won't be a bad situation. While there is a risk of ruining a friendship, there is a bigger risk that you rent out the space to a complete stranger who you will not like at all. As long as you have some rules set up and people are reasonable, I think it'll be fine.

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    1. That was our thinking, too. We feel like we got lucky with our past two housemates and, since she's lived here for two years, we're not excited about rolling the dice with another renter from Craigslist. So C moving in is a way to keep N around for another 9 months or a year (plus, we like C, too). Some rules might not be a bad idea, as the roost is about to get crowded...

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  18. One of my concerns would be with making sure that rent gets paid if one decides to hit the road (ie, breakup). Then you get all kinds of awkward conversations - who stays, who goes, etc.
    If you've got issues with public displays of affection, make sure you've got that sorted out so you don't come home to something you'd rather not see.

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    1. That's a good point. Though since N has been paying the rent ($400) for the past couple years, and C's rent is more than that now, I'd think that they could cover the cost alone. But like you noted, the more awkward bit is deciding who would stay in a breakup (we'd probably push to keep N, since she was the original tenant).

      I hadn't thought about PDA but luckily they're not that kind of couple. I've yet to see them kiss, and they've been dating for nearly two years.

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  19. The biggest risk here seems to be with the friendship. There's certainly the potential for people to get on each other's nerves, but I wouldn't necessarily make that a reason not to do it. It would probably be best just to have be honest and up front about recognizing that this is an experiment and may not work out to hopefully minimize hurt feelings if anyone (particularly you guys) want to move in a different direction at some point.

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    1. Hi, Matt,

      Yeah, I do think a short candid conversation is in order, though I'm not really looking forward to it. Our thought was that losing the friendship is the biggest risk, too. Though I think having N move out has the same risks: we're a bit concerned the friendship might fizzle after moving out, just as we'd see each other less. So we'd like to delay that a bit if we can.

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  20. I think having people you know live with you who you know to be relatively good people is much better than taking a chance with a stranger. My sister had a terrible experience with a tenant and prefers living with friends, even if it puts stress on the friendship.

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    1. Hi Tara,

      I hear what you're saying and I think we're of the same mindset. (Even though we ironically met N through our Craigslist ad for a roommate...no one said we were logical.)

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  21. Oh man, I wish you good luck. Personally, I would rather jab my pinky toe with a needle!

    Once I moved to a place of my own, I can't ever go back. I commend you guys for being frugal and making some side money! Let us know how it goes 3 months in!

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    1. Ha! I hear you, Sam. Neither my wife or I have ever had a place of our own, even a place we've lived in with just each other, so we don't know what we're missing. :) I'll definitely follow up in a bit to let you all know how it's going. At worst, a nightmare housemate situation makes for good copy.

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