Are you thinking of renting a place with your BFF? Your BAE? Your Boo? (as Michelle Obama said). Well, I am the ‘What If’ voice sitting on your shoulder. You want it all to go well. But what if?….. Get a Living Together Agreement in place.
But we are only renting, you might be thinking. Yes, it is not as big a financial risk as buying a place together but there are still issues that can crop up that have financial consequences.
Some of the issues I have helped to resolve would have been so much simpler if there was an agreement in place. For example, what if one of you gives your half of the deposit to the other to pay over in one go to the letting agent? One of you might be at work, one might work close to the letting agent but whatever the reason, the deposit comes from one person, one bank account. When it comes to giving it back, the letting agent will give it back to the person who paid it. And if you have fallen out with each other by this point, then the one with the money in their hand might be less than willing to hand over half of it. An agreement, signed by both of you and produced to the letting agent would solve that.
What about paying bills? Arrears left on bills? What about furniture that you buy? Damage caused to the rental place by one of you that it seems unfair to make the other pay for? (Foam party, anyone?) An agreement can deal with that too.
I see more young people opting to share a rental place too where they are sharing as friends, not with a romantic hearts and roses tint to the arrangement. They too can benefit from getting an agreement drawn up, specifying who will pay what and what happens if one of them moves out, getting a replacement tenant, paying back rental deposits etc.
I know. I am the voice of doom. I am still good fun at parties, though.