by Ed Firmin
Posted on Sunday, September 20th, 2015 at 15:53
As many of you are preparing for your first time living in rented property, there will probably be some questions already forming in your mind about how it’s going to work with you all living together.
One of the many questions I’m always asked is about how to organise the bills. It can be a long and confusing task, often with one person often lumped with the responsibility, so what is the best way of splitting the bills?
You need to ensure that all bills are paid on time and that each person pays their fair share of the amount.
The way I would recommend it is for each person to take on responsibility for one bill. For example, one person is responsible for the TV licence, one for the gas, one for the broadband and TV etc.
So that person will be responsible for paying it. It is also therefore, their responsibility for calculating each person’s share, and for collecting the money from each person every week/month/quarter. If you all sit down at the beginning and establish how much all the bills will come to, then the easiest way of doing it is to set up direct debits to each person so that they don’t have to chase everyone each month.
Even if the bills are only to be paid quarterly, it’s still worth putting that money aside each month, so that you aren’t having to fork out a big chunk of money every three months.
It’s still a good idea for everyone’s name to be on each bill. That way, you will all want to make sure that it’s paid on time, and in full, so that it doesn’t have any adverse effect on your credit score for the future.
But if anyone pays a bill late, then it’s their responsibility to pay for any fines, and you can even set up your own penalty system within the house. A late bill may mean, for example, cleaning the bathroom for the next two months. Be clear and upfront with each other right from the start. Setting up direct debits though, will hopefully avoid that problem (as long as you have the money in your account!)
So, as soon as you move in, get everything set up as quickly as you can. You may have to wait a few weeks for your broadband to be installed, so you don’t want to wait longer than you have to. Plus, some companies only have 12 month contracts, so you don’t want to have to pay for months when you won’t even be in the house.
If you follow this advice, I can guarantee that there will be less chasing each month, less arguments and less surprises with your bills. And that can only be a good thing!
If you’d like advice, either before you move in, or after about utilities and how to set up bills, then I can show you how to do it. Just contact me here.
And welcome to your new home!