You might be eager to find a roommate, but there are several ways choosing the wrong roommate can cost you. Sharing household bills can reduce your expenses. You'll have more cash to save, and you can use the savings to pay off debt. But if you don't choose wisely, a roommate can destroy your finances. Here are seven ways choosing the wrong roommate can cost you.
There are several ways choosing the wrong roommate can cost you. And one of these reasons – your roommate may not earn enough money. When you apply for an apartment, the landlord will ask for proof of income. But what you may not know is that landlords often use your combined income to determine whether you qualify for the apartment. And if you earn significantly more, the landlord may approve the application because your income is enough to cover the rent. But this doesn't benefit you. If your roommate signs the lease but discovers that he doesn't earn enough to cover his share of the expenses, you could end up paying more each month.
Then again, maybe your roommate earns enough to cover her share of the bills. However, if she has a spending problem, she might spend a large percentage of her income shopping or on entertainment. And when it's time to make the rent payment, she comes up short.
It's fun rooming with a friend, but this person might not have respect for your belongings. She may borrow and lose your items, or break things you purchased for the home. And if this person doesn't have the cash flow to replace the items, you'll have to pay the replacement cost.
It's routine for landlords to check credit reports before approving applicants. And unfortunately, if your roommate has bad credit, your landlord may require a higher security deposit.
It's important to choose wisely when looking for a roommate. At the end of the day, you need someone who's responsible and respects contracts. If you make a wrong choice, your roommate may decide to move out before the end of the lease. As a result, you're left to pay the rent alone each month. This can cripple your finances and make it harder to make ends meet.
If your roommate skips out on the lease early and you can't afford the rent by yourself, you're also forced to move out. And unfortunately, your landlord may require you and your roommate to pay off the lease balance. If you don't comply, he can sue for the remaining balance.
And if you break a lease early and you're unable to pay off the lease balance, a judgment can appear on your credit report. This negative remark reduces your credit score, and unfortunately, it becomes difficult to rent another apartment or purchase a house.
No matter how eager you are to move into a new place, don't rush this process. Choosing a roommate takes time, and you'll need to select someone who's responsible and in a financial position to afford the rent. What are other costly mistakes of choosing the wrong roommate?