You’ve decided to rent out your spare room or rooms and as you’re about to post your ad the question of how much rent you are charging pops up. Well how much do you charge? As most things when it comes to flatsharing that decision is individual and up to you, but to give you rough idea we thought we’d share our view on it.
The easiest way to decide how much you should charge for rent is simply to divide the total rent by the number of rooms. So if you have a 3 bed flat that costs £2,400pcm and stays in one room yourself while renting out the others the rent should be split three ways, i.e. £800pcm per roommate. If this approach is used it is also assumed that all bills would be split 3 ways as well.
Sometimes though, it can be easier to rent out a room if the bills are included as the person renting would know exactly how much he/she is supposed to pay each month. If you use this approach you have to take into consideration the monthly spend you normally have on bills and include that in the rent. For example, your 3 bed flat normally racks up £150 in water/electricity/internet bills every month and if you decide to include bills in your rental price you have to add this to the rent. In our case the £150 should be split 3 ways (£50/room) and added to the rent which now amounts to £850pcm for each roommate.
So far so good I hope! This is really a very basic way of going about finding out what is reasonable to charge as rent. However, sometimes the bedrooms in a flat can vary greatly in size and that’s when it becomes complicated. I mean is it reasonable to charge the same amount for a double and a single room? For a room that’s 12 m2 and a room that’s 8 m2? If you think so and whomever renting your room thinks so then by all means go ahead, but chances are you both think it is a bit unfair!
So how do you know how to divide it? Well, I’d say there’s two ways, either you just make a rough estimate- ok my room is a little bit bigger so I pay a little bit more. Or you actually split it completely fairly by square meters or square foot. To do this you have to add up the m2 of all bedrooms so you have a total of m2. Then you divide the rent based on the number of m2, in our example we have a 3 bed flat: Bedroom 1 is 16 m2, bedroom 2 is 14 m2 and bedroom 3 is 12 m2. That gives us a total of 42 m2 and at a monthly rent of £2,400pcm this means that every m2 is worth (or costs) £57,14 per month. So then you simply multiply the m2 cost with the amount of m2 for that room. The result for our example would be that bedroom 1 should cost £915pcm, bedroom 2 should cost £799pcm and bedroom 3 should cost £686pcm.
There you go, two ways of establishing how much you should charge in rent for your spare room! Once again, how much you decide to charge is totally up to you but hopefully this can give you an idea.