Renting an apartment is expensive, especially in larger cities like New York City or Chicago. Many prospective tenants decide to live with roommates so they can split the cost of rent and utilities. However, living with a roommate can pose many questions when it comes to signing the lease. First-time renters can continue reading to learn more about lease agreements with roommates and the benefits of signing a legal document with another person.
Roommates and Leases
Renters can choose to live with roommates when they sign their lease. The roommate lives in the apartment with the original tenant, and they will find an equitable rent split. Some roommates may split their rent evenly, or they may price each room and select which room they wish to live in and pay for. While “roommate” is the colloquial term most people use to describe their living situation, a roommate is also called a co-signer. Co-signers accept responsibility for paying the rent with the original tenant, and they will sign their name on the lease.
Pros and Cons of a Roommate
In most cases, those deciding to live with a roommate probably need to do so for financial reasons. However, it’s important to consider the person you decide to live with. On the day-to-day, you’ll want to select someone with a similar cleanliness style, and someone who you get along with. White, you and your roommate do not need to be friends, it’s helpful to live with someone who you can exchange pleasantries with.
On the financial side, it’s incredibly important to pick a roommate who you trust to pay their rent on time. This is where living with someone you know can be a benefit, as you’ll have a better idea of their past renting experiences, their spending habits, and their overall reliability. However, some tenants may want to avoid living with people they know to avoid potential fallout from a roommate situation turned south.
Do All Roommates Have to Sign a Lease?
When signing a lease, the landlord will present a document to all of the tenants, and ask for most of them to sign the paperwork. In most cases, all roommates will sign the lease together, and they will each have separate lines on a page. The roommate lease form looks the same for all roommates, and usually, each form will require the signatures of all the tenants in the apartment.
As the bedroom count and number of roommates increase, the odds of everyone signing the lease decreases. This is more common if multiple roommates will share a room. For example, in a three-bedroom apartment with four roommates, only three may sign the lease as a tenant. However, any additional roommates may sign the lease as an occupant. An occupant is a designated roommate who does not share the same rules and obligations as the tenants. If you’re looking to build your credit score, acquire a recommendation letter at the end of your lease, or build your rental history, signing the lease as a tenant is a good idea.
How Many People Can Be on a Lease?
A property owner may limit the number of people on a lease to one or two more than the total number of bedrooms. A landlord would not sign five renters on a one-bedroom lease, but they may accept an additional one or two occupants. This situation can vary based on the number of people under the age of 18 who live in the unit.
Pros and Cons of Co-signing a Lease
While roommates may have already considered the pros and cons of living together, they should also remember the benefits and drawbacks of signing a document with others.
Responsible for Payment
Upon signing the lease, every tenant accepts financial responsibility for paying the monthly rent. While you and your roommate might have each decided to pay $1,500 monthly on a $3,000 lease, you’re ultimately responsible for ensuring the landlord receives $3,000 each month. Therefore, if your roommate is late on rent, this can affect your standing with the landlord and your financial well-being. You may need to cover your roommate or risk eviction.
Right to Live in the Unit
Signing the lease means that every roommate has the ability to live in the apartment. Therefore, your roommate cannot formally kick you out of the unit if you have a signed lease. This provides more protection than a verbal month-to-month agreement or sublet scenario.
Additionally, each tenant who signs the lease will receive access to the landlord’s services. If something in your room breaks or if your entire apartment loses heat when everyone else is gone, you will have access to the landlord and be able to receive services. In larger buildings with modern services, you will receive access to the digital communication platform that lets you submit tickets and directly message your super or property manager.
Sign a Roommate Agreement
While you and your roommates will sign a lease together, it’s also a good idea to create and sign a roommate agreement. The lease describes your relationship with the landlord, but it does not specify the obligations each roommate shares to each other. The roommate agreement is a smart place to put any clauses about cleanliness, guest hours, and overall respect for each other in the space. In addition, it’s where roommates can describe their financial obligations to each other. This way, if one roommate defaults on their payment, the other tenants can have a written and signed agreement to fall back on if they need to escalate the matter to small claims court.
There are numerous roommate template agreements online, but renters can also draft an agreement amongst themselves.
Conclusion
If you have found a roommate and are choosing between these two options, just know that both are available (if the landlord allows it) to freely choose from. Note the pros and cons, and if you haven’t found a roommate yet, choose wisely to avoid roommate problems that could result in fines and a bad apartment experience.
