[USER]

Need your thoughts and opinion on the matter! How much should each partner pay for rent? What is fair and why?

Scenario: Partner 1 is taking on a part-time property managing position to access more affordable rent.

Role requires about 15-20 hours in-person tasks a week so rent would be $1300/month 1 bedroom apartment in high cost of living area.

Partner 2 wants to move in together so they can save money. Partner 2 wants to split $1300 rent and utilities down the middle.

Also split 50/50 all over food expenses. Average 1 bedroom is roughly $1900-$2200 a month for the area.

Financial Profiles
Partner 1 (early 30s):
370k net worth
120k yearly salary FTE (40hrs in office, ~5k yearly raise)

20 hr/wkly PT property management that lowers monthly rent to $1300 a month
$700 fix cost for auto + insurance
$450 student loan repayment per month (25k in student debt)

Partner 2 (mid 30s):
120k net worth
250k yearly salary (2 full time remote jobs ~ 25/30hrs per role, ~average 8-10% raise yearly raise total)

Currently pays $3400/month for 1 bedroom and parking
$1275 fixed cost for auto and insurance
No student loans

Thanks!

[Brian]

Oh heck no. Partner 2 is terrible with money and is trying to take advantage of Partner 1. Massive red flags.

Proceed with caution but under no circumstances should Partner 1 have to pay any part of that rent if Partner 2 is living there.

[Katie]

I’m confused. It hardly seems like a high cost of living if the average apartment is $2,000/mo and you make over $350k between the two of you.

I couldn’t imagine getting a second job as a property manager to save $700/mo in rent when you make that much combined.

If this were me I would get an apartment that works for both of you (with no sercond job) and split the cost, but have the one making twice as much carry the rest of the household expenses (groceries/utilities).

[Nate]

This is for you and your partner to decide. There is no one correct answer.

[Fiona]

On these salaries what is anyone quibbling about?

[Bea]

I would advise partner 1 not to move in together. They won’t even have a cheaper place to rent if not for partner 1’s access to more

affordable rent and partner 2 is knowingly taking advantage esp with the 50/50 arrangement.

[Ronke]

If partner 2 currently pays $3400 for rent, they should pickup the full $1300 rent as that’s a significant savings for them that they would never have gotten without Partner 1s sweat equity of part time work.

That’s about $2k saved each month. Then everything else can be 50/50.

[Juliett]

Partner 2 is trying to take advantage. They should pay market price proportional to income.

[Jin]

This is a very personal decision, there’s really not a right or wrong answer. We combine our finances completely.

[Peter]

IMHO, I’d expect Partner 2 to contribute noticeably more than 50/50 split in this situation. You want to have a generous partner, but you should not be greedy either.

If you can afford it, offer to cover the rent totally by yourself and see what happens.

You partner might counteroffer to cover it themselves (which I’d see as a relatively fair deal, but you also could split it, say $1000/$300).

Or they might just take it – but then you (a) know they are probably not generous, (b) retain freedom to kick them out if they don’t come to their senses (taking a clearly unfair deal is a red flag). And a great photo, BTW!

[Andrea]

I think the 50/50 split is perfectly reasonable & what I would do. Both people save money on rent & utilities and both people can afford the 50/50 split.

I don’t believe that each person’s salary should come into play unless one partner earned closer to minimum wage & would otherwise struggle to pay half.

Sounds like it’s a win/win for both of you at 50/50.

[Terrel]

50/50.
You don’t *have* to live together. If you *want* to do so, then it’s a mutual decision, and 50/50 is a fair way to split non-essential expenses.

I’d make a joint account, both parties setup an automatic deposit into it, rent is pulled out automatically. On to the next hurdle.

[Caroline]

1. Take the middle of the average cost of 1 bedroom per month — that leads you to $2050 (between $1900 and $2200).

If this rent is split 50/50, then each pays $1050.

2. Partner 1 needs to work 20 hr/week extra to get $1300 a month apartment.

Partner 1 is deemed to have contributed $750 ($2050 minus $1300) towards share of rent from this work.

3. Partner 1 therefore contributes $250 cash + $750 in kind towards rent. And Partner 2 contributes $1050 cash towards monthly rent.

Total cash towards landlord is $1300 ( = $250 cash from Partner 1 + $1050 cash from Partner 2).

4. Utilities, food and other living expenses can be split 50/50 as well if the parties want a 50/50 split.

[Author]

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