Sunday, July 19, 2009

ADVICE: Questions to Ask when Interviewing Potential Housemates

Here are a few questions to help you when interviewing your potential housemate.

Background:
  • Have you lived in share accommodation before?
  • Why are you looking for a place to share?
  • Why is the room available?
  • How many people currently live at the property?
  • What are your current living arrangements?
Occupation:
  • Are you currently working? Full-time, part-time or casual?
  • What is your occupation?
  • What are your working hours?
  • How long have you worked there?
Hobbies & Interests:
  • What kind of music do you like?
  • Do you have any hobbies or play sport?
Social Habits:
  • Do you like to entertain or have friends over?
  • Do you like to spend a lot of time at home or do you prefer to go out?
  • Do you have a partner? If so, do you expect they will stay overnight regularly?
Domestic Chores & Hygiene:
  • How do you believe the chores should be organised?
  • Will there be a roster?
  • Will you be prepared split domestic chores onto a roster?
  • Would you consider yourself to be clean and tidy?
Smokers:
  • Do you smoke? If so, do you smoke inside or out?
Pets:
  • Do you have any pets?
  • Are pets allowed on the lease?
Expenses:
  • Does the rent cover expenses? If so, what exactly does it cover? (Expenses can include phone, water, internet, gas, and electricity)
  • When are the bills due?
  • How will we determine how the expenses get divided up?
Bond:
  • How much is it?
  • What are the terms and conditions?
  • How do I get it back when I leave?
Rent:
  • How much is it?
  • When is it due?
  • How is this to be paid?
  • When was the last time the agent/landlord increased the rent?
Shopping Arrangements:
  • Are the groceries bought separately?
Stability:
  • How long do you intend to live here?
  • How long have you lived here?
Availability:
  • When are you available to move into?
  • When will the room be available?
  • When do you hope to make your decision?
References:
  • Would you be able to provide references? (These could be from a previous flatmate, employer, current landlord or rental agency)
  • Do you mind if we conduct a reference check?
Furniture:
  • Will you be bringing any furniture? If so, what type?
  • Is the room fully furnished?
Leases:
  • Is there a lease?
  • Are you willing to sign a lease?
  • Or will it be sublet?
  • How long is the lease for?
  • When does it expire?
  • Who is primarily responsible for it?
Have we missed some? Please post below.

Monday, July 13, 2009

ADVICE: How to Inform Unsuccessful Applicants

Once you have found your new housemate you also have that dreaded job of informing the losers. Here is a simple guide to mastering the art of painless rejection via email.

Please Note: Must be read with a sense of humor!

Once you have found your new housemate, it is advisable to notify those applicants that have been unsuccessful. Writing a rejection email is no easy feat. The message gives the applicant unwelcome news, and is therefore likely to disappoint the reader. To help we have outlined a few tips to make writing the rejection email a little less painless for both parties.

Open With a Positive Note: Open with a sentence that acknowledges the Share Accommodation Application, as this gives information on which both the writer and reader agree. This is a neutral opening paragraph. If the refusal is stated in the opening paragraph, the applicant may simply stop reading. As you want them understand your situation, use this paragraph to lead your reader to the main purpose of the letter. Examples include – “Thank you for applying to my Share Accommodation Ad,” “Your inquiry of my Share Accommodation Ad is appreciated…”

Explain the Situation: Present a positive explanation of the situation with courteous and clear reasons for the refusal. So that the reader has every chance of understanding your explanation and accepting your decision. It is unacceptable and discourteous to sound sarcastic, patronising, insulting or angry. Explain before you give the refusal. Lead the reader to the bad news tactfully.

Give the Refusal or Negative News: State the refusal clearly as the reader needs to know your decision. Write the message with conviction and confidence in a way so that the reader understands the reason for your refusal.

Close with a Positive Paragraph: Never place the refusal in the last sentence of the letter. Close in a neutral way with a sentence or paragraph that is courteous and pleasant. Avoid referring again to the bad news, apologising repeatedly or using clichés. Instead close the letter in a positive way.

Here is one we prepared earlier...

Example Rejection Email:

Hi Millie,
Just a quick note to thank you for your applying to my share accommodation advert on ziggie.com.au. Although the apartment seems great, I require accommodation close to public transport as don’t currently own a car. I have recently moved into a unit close to the train station so I am unable to accept. I appreciate your email and hope that you find a housemate soon.
Many Thanks,
Ziggie Green.

Sunday, July 12, 2009

NEWS: Perth rents hiked by $20

THE cost of renting in Perth has increased at a faster rate than almost every other city in Australia over the past year.

The median rental asking price for a house in Perth is now $370, up 5.7 per cent from $350 in June last year, the Australian Property Monitors rental series for the June quarter released today shows.

The only cities with a bigger increase are Sydney at 7.1 per cent and Canberra at 11.1 per cent.

APM economist Matthew Bell predicted rents would now stay steady for at least the next three months.

"There's a good chance rents will remain flat for another quarter in Perth," he said.

"Sydney and Melbourne will probably come out the downturn a bit quicker than Perth."

The data shows no increase in asking rental prices in the June quarter from March.

Mr Bell said most of the rise occured in the last half of 2008.

"Not a lot has changed since the end of 2008, there's still low vacany rates and strong population growth," he said.

"I think for most areas rents will go as the general economy goes.

"It's still looking good for landlords."

The asking price for units in Perth remained unchanged at $350.

Melbourne was the only capital city where the asking rental price for houses did not go up in the last year.

Source: Perth Now

NEWS: REA puts on brave face against Google

ONLINE real estate company REA Group is preparing to face its biggest competitor yet, Google, but is confident it can build revenue after withdrawing from Britain and New Zealand.

Chief executive Greg Ellis played down Google as a threat to REA's 900,000 listings and five million unique browsers on its realestate.com.au website, saying competition was always good.

Google announced this week it would list properties on its Google Maps.

"It's a fairly rudimentary service," Mr Ellis said of the Google initiative.

"Google's a very good company, it is competition, but we welcome competition because it makes us stay sharper and more focused for our customers and consumers," he said. "Our position in the marketplace is very strong, we are the market leader in online real estate."

Mr Ellis said the group had cut back its international operations but this had nothing to do with the global economic downturn.

"Our decision to focus on Australia was nothing to do with the global financial crisis ... (but) that there is a lot more profitable growth to happen in Australia.

"We were spending too much time in the overseas businesses and not enough time in Australia. We've accepted now that we are not an international company -- we're an Australian company with overseas operations."

Mr Ellis declined to comment on whether REA would withdraw from the United Arab Emirates but said the company remained committed to the businesses in Italy, Luxembourg and Hong Kong.

"We've exited New Zealand, we've announced the consultation process with the UK, so we're now narrowing down the businesses where we think that we can provide sustainable, profitable growth for the shareholders," he said.

In June, the REA Group announced a $28 million writedown of its Hong Kong and UAE business.

Mr Ellis is in his first year at the helm of REA after former chief executive Simon Baker departed abruptly last August.

Mr Ellis said there were still ways to grow the REA business substantially from its annual $156 million revenue.

"Less than 10 per cent of our listings products are actually paid for, and over the next six to nine months you will see a significant uplift in the product offers that we will take to market," he said.

"So there's a whole new product set that will allow the agents to promote the vendor's property in a more meaningful or prominent way."

REA shares yesterday closed down one cent at $5.90.

Source: The Australian

Thursday, July 9, 2009

NEWS: No place to call home

TIME is of the essence. For homeless Australians, the 105,000 on the Australian Bureau of Statistics count and likely thousands more sleeping rough, living in boarding houses, emergency accommodation or bumming a room from friends or relatives, those five words couldn't be more profound.

They come from Swinburne University social policy researcher David Mackenzie, co-author of an Australian Institute of Health and Welfare study to be published today on the state of homelessness in Australia, a report finding a significant rise in the number of families without a place to call home.

"Time has moved on when it comes to homelessness in Australia. It's not like the 1950s and 60s any more where the homeless tended to be older single men on skid row," Mackenzie says. "Overall the report (Counting the Homeless) shows the number of homeless remains just over 100,000 (between 2001 and 2006 when the latest ABS figures were compiled), however for families there has been a 17 per cent increase and for single people a 10 per cent increase.

"But for teenagers living on their own there was a 20 per cent decrease. This was something of a surprise, but it shows resources committed to early intervention programs for them worked.

"The policy lesson is that a significant amount of early intervention work is needed for both young people and for families."

How quickly governments, federal and state, can get these policy settings right and programs up and running, to meet Kevin Rudd's ambitious commitment to halve the number of homeless in Australia by 2020, is the subject of concern. Particularly because all service providers agree that since the 2006 census the numbers of homeless across Australia is likely to have risen significantly.

Mission Australia chief executive Toby Hall says there has been a huge spike in demand for his organisation's services in the past two years, particularly from families. The impact of the global financial crisis over the past year has been particularly acute.

"What is happening is that people may not have lost jobs entirely but have had their hours cut back," Hall says. "A household budget that was just scraping by is now in deficit, a situation not sustainable beyond a few months. They can't pay the rent, they need to take emergency accommodation where they can, and their children are displaced from school.

"We have seen a 70 per cent increase in homeless families in the last 24 months, much driven by the global financial crisis.

"And for single males there has been a 50 per cent increase in the past six months alone for similar reasons."

Rudd has aligned himself closely with homelessness issues since coming to power in December 2007. He spent his last Saturday night before the federal election visiting a homeless shelter. On taking office he urged his Labor colleagues to do the same, to see for themselves the inequity that still exists in Australia.

Rudd labelled homelessness a "national obscenity" when launching a green paper into the issue in May last year and pledged $1.2billion in funding over four years last December to help meet the target when the government's white paper, "The Road Home: A National Approach to Reducing Homelessness", was released.

At a Council of Australian Governments meeting last year the states agreed to match federal housing funding of $400m to address the homeless problem.

But the COAG timetable has slipped, with NSW and the ACT still to submit implementation plans this week despite a March 31 deadline to do so. On Monday federal Housing Minister Tanya Plibersek acknowledged the delay by some states and territories, and on Tuesday the government started providing funds to those states where an implementation plan had been agreed.

Plibersek says the federal government wanted to ensure the states were putting new money to homelessness programs before any agreement was reached and federal funds provided. She told Sydney radio station 2UE that NSW, the state with the highest number of homeless people according to the census data, had "a great plan ready to go" but must commit new money before it can be agreed to.

"We've asked them for a few more details," Plibersek says. "We are checking up to make sure that the state contribution is new money."

Mackenzie says Rudd's commitment to the homeless was "universally welcomed in the Australian community after long years of neglect". But he made a call for urgency.

"To halve homelessness by 2020 requires the right policy settings, but importantly policy must be implemented sufficiently to have effect and in time," Mackenzie says.

"There is strong evidence that early intervention has produced a decrease in the number of homeless teenagers. To decrease this further, early intervention for youth will need to be at least doubled at an estimated cost of $40 million.

"A significant initiative for at-risk families may require some $60m-90m but over time would potentially have a major impact on reducing the number of homeless persons.

"In all of this, time is of the essence."

Homelessness Australia national chairwoman Narelle Clay says the AIHW data is a reminder that such a high degree of homelessness in a country as prosperous as Australia is completely unacceptable.

"That's why it was such an important announcement for the Prime Minister to make at the launch of the white paper, and why it's been important that time has been taken since to develop plans to address homelessness in the states and territories," Clay says.

"I think the amount of time taken up to now has been reasonable because it's such a complex issue. But we do need to see those state implementation plans on the record.

"I'm hoping we see them very imminently. We don't want to waste time now. We need to get on with it."

Australian Council of Social Service chief executive Clare Martin agrees, calling for action sooner rather than later.

"The sooner people at risk of homelessness can access early intervention programs and integrated services the more protection they will have," Martin says. "As the winter cold sets in it is vital rough sleepers have somewhere warm to sleep."

But Hall urges patience. "I'm not aware of anyone seriously engaged in the homelessness field who isn't supportive of the strategic direction government is taking," he says.

"Realistically we're at a point where we do need to see stuff start to come to fruition, but it's unrealistic for people in the sector to criticise progress when we're about to see things start.

"We have to recognise what has been done. From Mission Australia's perspective we have an affordable housing facility up and running in Melbourne that wasn't there six months ago. The same with an affordable housing project for families, up and running in western Sydney. Of course we would love to be able to house every homeless person tomorrow and for this change to happen immediately, but we need to be patient in the sector.

"What's been done already is significant and is moving in the right direction."

For homeless Melbourne woman Bek Smith, policy and politics pale into insignificance as she battles day to day to get by.

Now 29, Smith first experienced homelessness in her teens. Like so many homeless people, she had a range of problems, including drug dependency. Also like so many, she has moved in and out of homelessness over the course of her adult life.

This is why many believe the census estimates, which are a snapshot in time, don't reflect the true numbers of people who are homeless in Australia in any one year.

"I started using at 16 and by 17 I was locked up in Deer Park women's prison," Smith says from the Hanover crisis accommodation centre in Melbourne's Southbank.

"For the next four years I lived either in prison or on the street." She pauses to reflect.

"It hasn't been a walk in the park, that's for sure. I don't resent anybody. My mother had me quite young. I blame my own curiosity, but definitely experiencing as much homelessness as I have, it's been extremely challenging."

Smith says it is very difficult to get into the private accommodation market.

"It's pretty hard to put a (rental) bond together when you're on a disability support pension," she says. "I was in a terrible car accident in Sydney, a passenger in a car that hit a telephone post at 100km/h. I broke my sternum in seven places, ribs and ankle. And anyway the places (to live) are all so dear."

Smith says she hasn't given up hope of finding paid work now that she's clean and sober. Her field is film editing. "I'm getting to the point where I'm a bit toey not working, so it would be good," she says.

Plibersek says it isn't the case that homeless programs have stalled. "A massive amount of work has gone on," she says. "We are building thousands of new homes, we're funding millions of dollars worth of new services. We're opening new services for aged homeless people, services like the ones that have never existed before to help some of the most vulnerable people in our community.

"We've refunded 101 reconnect services to help young people reconnect with their families, we've increased their funding. There is an enormous amount of activity that has already gone on that hasn't depended on the signing of these documents.

"When we sign these agreements with the states, we also know that their effort will increase along with our effort."

Hanover Welfare chief executive officer Tony Keenan says he understands the bureaucratic delay, given the complex needs of homeless people means more is required than just addressing a housing shortage.

"We need to get the services moving, but they can't be knee-jerk, tempting as it is," he says. "If we are to make real change we have to ensure other relevant players are at the table: schools, mental health, job providers.

"For example, 65 per cent of school-age children living in SAAP (supported accommodation) services don't go to school.

"After they move out and into private accommodation that figure increases to 66 per cent, so we are having a negative impact. This is because we have to shift them around to find housing. It's just one example of the complexities involved."

Source: The Australian

NEWS: Bottom in sight for classified ad market

THE fall in advertising at Australian metropolitan daily newspapers in recent months may be starting to level off, with new figures showing Fairfax Media's classified page ad volumes in June recorded their lowest rate of decline since late last year.

The trend comes as some forecasts suggest the worst could be over for the economy.

Goldman Sachs JBWere's monthly "page count", which monitors ad volumes for Fairfax's main metropolitan daily newspapers, shows a year-on-year decline of 34 per cent for June.

This compares with a 41 per cent classified decline in May and monthly falls of between 40 per cent and 51 per cent earlier this year.

Goldman's chief media analyst, Christian Guerra, indicated that the downward trend in Fairfax's classified advertising volumes had moderated.

"Our page count for June has revealed that year-on-year declines in total pages and pages of classifieds continue," he said.

"However, assisted by easing year-on-year comparables, the rate of decline has clearly stabilised."

The trend appears to support a call made by Mr Guerra late in May when he upgraded his recommendations on several local media stocks because of an "increasingly optimistic view" of the economy and, ultimately, of the ad market.

Mr Guerra had been bearish about the media sector throughout last year and much of this year.

The biggest sign of the moderating declines in the ad market has come at Fairfax's two flagship metropolitan dailies, Melbourne's The Age and the The Sydney Morning Herald.

The Age recorded a 35 per cent fall in its page count for June, compared with 39 per cent in May and 55 per cent in March-April. Classified volumes at the Herald also fell at a declining rate of 30 per cent in June, compared with 37 per cent in May and 45 per cent in March-April.

Goldman Sachs said Fairfax would "re-rate", along with its media peers, into a "sustained ad market check recovery".

Source: The Australian

Tuesday, July 7, 2009

NEWS: Rent increases exceed wage growth

May 16, 2009

SYDNEY rental prices continue to rise, exceeding wage growth, a New South Wales Government housing report shows.

Housing NSW's Rent and Sales report shows the median rent for all dwellings in Sydney had gone up by $5 to $390 in the March quarter, or the first three months of calendar 2009.

Overall, the median rent for all dwellings throughout the state was $325, down 1.5 per cent over the quarter, but up by 8.3 per cent over the year.

NSW Housing Minister David Borger said rent increases were still exceeding wage and consumer price index (CPI) growth.

The report showed western Sydney was the cheapest area in which to rent, while the most expensive areas were the northern and eastern suburbs.

The cheapest one bedroom rentals were in Blacktown and Bankstown areas, with a median rent of $180 a week; Fairfield at $185 a week and Liverpool at $188 a week.

The most expensive one bedroom rentals in Sydney were in Willoughby, in the city's north, with a median rent of $430 a week; Canada Bay, in the northwest, at $420 a week, followed by Waverley, Woollahra and Manly at $400 a week.

The cheapest place to rent a four-bedroom home in Sydney was in Campbelltown, with a median rent of $360 a week, compared to $1300 a week in Mosman and Waverley.

“Worryingly, we are seeing rents rise in some rural and regional areas in NSW,” Mr Borger said.

For all two-bedroom dwellings, the median weekly rent was up by 15.4 per cent in the central Macquarie area annually, 11.1 per cent in Clarence, 10.5 per cent in Wagga Wagga and 8.1 per cent in Orange.

House prices fell for all dwellings across Sydney by 2.9 per cent over the three months to December 2008 and by 12.3 per cent over the year.

Western Sydney is also the cheapest place in which to buy a house, with the median price of all dwellings in Campbelltown at $280,000 in the December quarter, compared to a median price of $833,000 in Woollahra.

SOURCE: The Australian

VIDEO: The Housing Collapse of 2010 Will Be Worse Than 2008

VIDEO: Housing Crisis worsens...

Sunday, July 5, 2009

NEWS: 20pc of homeowners would rent out a room

ONE in five homeowners would consider renting out a spare room to help pay the mortgage in increasingly difficult economic times, a new survey has found.

The poll by real estate agency PRDnationwide also found 14 per cent of respondents already had someone renting a room and another 15 per cent would do so if they had the space.

PRDnationwide research director Jonathan Rivera said the results were not surprising given the present economic climate.

"Having someone contributing $100 a week to rent a spare room could be the difference of struggling with bills or not," he said.

Mr Rivera, said many homeowners had bought properties with a granny flat or spare bedroom to give them the choice of renting it out, though they have not actually done it.

"But in today's economic climate, people are starting to take the plunge and realise the capital on this extra room."

Still, a majority of households want to retain the privacy of their own home, with 51 per cent saying they wouldn't consider a lodger.

SOURCE: News.com.au

NEWS: Stressed borrowers taking in lodgers

DESPERATE home owners overwhelmed by interest rates and the high cost of living are renting out bedrooms in order to survive financially.

The combined effect of the housing and rental crises is believed to be causing more home owners to seek “lodgers” to provide more income to the household.

Housing Industry Association (HIA) chief economist Harley Dale told NEWS.com.au that there has been anecdotal evidence that renters were increasingly being used to help owners with mortgage repayments.

“Certainly, there’s very, very strong anecdotal evidence that we’re starting to fill up empty bedrooms in the current tight housing market that we face,” Mr Dale said.

Several home owners in Perth, Sydney and Melbourne that have sought lodgers have said their motivation to bring in a renter was because of mortgage and living costs.

Irini, a university student living in her family-owned home in Brisbane, said living costs forced her to bring in a renter.

“I would have preferred to live by myself, but I didn’t really have that option,” Irini said.

"It’s been pretty helpful.”

She said she would continue to rent out a bedroom for at least two more years.

Mr Dale said he expected an increasing number of home owners to “fill” any spare bedrooms with renters in the next 12 months.

“It looks as though we’re at the start of a point of time where that free space is going to be scrutinised more closely than it would have been a year or two ago… easing the financial burden on the household,” he said

“I think, provided an element of common sense is used, it’s a smart way of relieving the current financial pressure.”

Beware the tax man

Stressed homeowners who are thinking about taking in lodgers need to be aware of the tax implications. Check with a financial expert about how taking in a lodger will affect your tax status. There can be a fine line between who the Australian Tax Office deems a boarder or lodger, and who they see as a tenant.

For a lodger, you have to be able to convince the tax office that any money you receive is going towards household expenses – otherwise it will be classified as rental income. This means you could lose a portion of your capital tax gains exemption as you’ll be seen to be running a business from your home. Get professional advice.

Stress levels rising

Mortgage stress recently hit its highest level in more than a decade, according to credit ratings agency Standard & Poor's. Around 1.45 per cent of borrowers with standard mortgages were at least one month behind on their loan repayments in the three months to end of March, compared to 1.09 per cent in the December quarter.

Property research firm RP Data is predicting that up to 400,000 Australian households will be severely stressed by September, and 500,000 will be at least mildly stressed.

SOURCE: News.com.au

NEWS: Rental boom continues

Rents continued to grow solidly across all property types in all capital cities in Australia, a new report shows.

RP Data revealed that on average, rents jumped by $41/week for houses and $35/week for units through 2008 - indicating a very strong rental growth.

Darwin outperformed the other capital cities with rents for houses jumping by $70/week or 18%. Units did even better with a $60/week increase in rent or 19%.

"Although Darwin's property values recorded the greatest increase through 2009, it is interesting to note that the city maintains the country's best rental yields at 6.25% for houses and 6.44% for units," noted Cameron Kusher, senior analyst with RP Data.

Sydney also staged a strong gain with an increase of 18% or $70/week over the year while unit rents climbed by 14% or $50.

Melbourne saw house rents rising by 17% or $50 per week, and units increasing by 14% or $40 per week.

In contrast, median rents for houses in Canberra only increased by 4% or $15 per week and units by 6% or $20 per week. Adelaide also underperformed with just a 5% increase or $15 on median rents for houses and units by 6%, or $10.

A leading factor to rental demand increase is no doubt Australia's record pace population growth, which has continued recently to reach a 40 year high, according to the Australian Bureau of Statistics.

SOURCE: RP Data

NEWS: Average cost of renting jumps $40 in a year



IT COSTS $50 more to rent a house now than it did a year ago, new figures show.

The average cost of renting a unit has jumped $40, according to research firm RP Data and it is still rising.

The average house rent rose from $300 in December 2007 to $350 in December 2008 while the average unit rent rose from $280 to $320.

The rises are great news for investors hoping to take advantage of record low interest rates and bad news for tenants.

RP Data's research analyst Cameron Kusher said the 17 per cent rise in house rents and 14 per cent rise in apartment rents coincided with price falls significantly boosting the yield new investors are able to get.

In a growing number of areas it is possible to buy a property where the rent exceeds the interest on the loan.

"The numbers show that quality inner city property will continue to witness strong long-term demand for both owner occupation and rental occupation,'' Mr Kusher said.

He said rents will continue to rise this year although not by as much as last year .

Vacancy rates remain close to a record low at 1.4 per cent, according to the Real Estate Institute of Victoria.

Source: Herald Sun

VIDEO: Sandman's Tips for Sharehouse Living #2

VIDEO: Sandman's Tips for Sharehouse Living #1

VIDEO: Weird Flatmate



5 Stars for the competition...great ad.

VIDEO: Dream Flatmates



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NEWS & ADVICE: How A Bad Roommate Can Ruin Your Credit Score

PLEASE NOTE: This news article is from the USA.

When you're fresh out of college and trying to swing rent on an entry-level salary, getting a roommate seems like the way to go. However, while roommates can save you money on rent, they can also damage your credit score if they forget to pay their half of the rent or volunteer to send in a payment for a utility bill in your name - and don't. So, if you find yourself looking for a roommate, keep this in mind: a bad roommate could mean bad credit for years to come.

Screen Roommates Carefully
Not only can a roommate harm you financially, but you may not want to live with a person who doesn't share your attitudes about cleaning, overnight guests or on-time payments. Ask questions about habits and request references from past roommates. Talk to your friends about what questions they asked their roommates, and combine this list with your own questions. Make sure these questions make the list.
  • Have you ever been late on a rent, credit card or installment payment? Since your potential roommate may not have had an apartment before, you want to find other ways to gauge responsibility. Asking about credit card or car loan payments helps fill in the gaps. (For more check out Six Major Credit Card Mistakes.)

  • What do you consider clean, and what is your cleaning routine? The words messy and clean mean different things to everyone. How many times have you walked into a friend's place that seems immaculate to you, but prompts your buddy to excuse the mess? You need details about this particular habit to decide if you’re a roommate match.

  • What kind of guests do you plan on having over? Some people love to bring home new friends they meet at a party. If you only bring home people that you know well, you need to have a roommate who will uphold your rule.

  • Do you keep in contact with your previous roommates? Staying chummy with a past roommate shouldn't be a requirement, but it will possibly tell you if your potential roommate has gotten along well with others. If the answer is "no", you want to ask what the reason is, so you can decide if the previous situation was petty or something that will bother you in the future.
Be Prepared to Pay the Full Rent
This doesn't mean you have to have tons of money available in a temporary rent paying situation, but you should have enough money that you could squeak by on a skeleton emergency budget for at least a month or two until you find a new roommate.

Especially if you are the only person on the lease, your roommate could leave at anytime - leaving you with the full rent. Even if you both are on the lease, our roommate could still leave the apartment or lose his or her job. While you find a new roommate, the rent doesn't get put on hold. (Do you have enough savings to cover the costs of unforeseen crises? We show you how to plan ahead in Build Yourself An Emergency Fund.)

Be Responsible for Every Bill in Your Name
If any bill's in your name, collect your roommate's share and then pay the bill yourself. The late pays and/or eventual collection notice could go against your credit rating. One way to avoid having to ask for the rent and utilities each month is to set an amount that your roommate will pay you each month that includes rent, electricity, cable, phone and other shared bills. If your roommate is forgetful of the set amount, have him or her set up a bill pay from his or her checking account to go to you.

Don't Move Out While Bills are Still Under Your Name
If you are gone for the summer, do not keep the electricity bill or any other bill in your name. Switch it - with your roommate's permission - to your roommate's name. If you move out, don't expect roommates to return cable boxes or anything else for you. You can get stuck with the tab for anything for which you are legally responsible. (Avoid punishing late fees and keep your credit score intact with these 10 tips, see Procrastinator's Guide To Bill Payment.)

If You Move Out, Take Your Name Off The Lease
If you don't take your name off the leas, you will still be responsible for the rent - whether you are living in the apartment or not. The problem with this situation is your apartment office may not let you remove your name before your lease is up. If your name can't be removed, stay put until the lease ends. However, if you are moving out because you are offered a job in another city, look into what the charge would be to break the lease so that your roommate can start a new lease in your apartment or another one on their own. (If you think it's time to test your wings and leave your parents' nest, read Are You Ready to Rent?)

The Bottom Line
Livingwith someone is a huge financial and emotional decision. Make sure that you screen potential roommates for how you’d live together, check into their payment habits and always verify bills are paid on time when they are in your name. Your credit history lasts a lifetime, and unless you find true love with your roomie, your living situation will most likely end as soon as you have the funds for a place of your own.(For additional tips on renting apartments, read 6 Tips For Renting An Apartment and Easy Ways To Cut Rental Costs.)

by Reyna Gobel

SOURCE: investopedia.com

NEWS: 'Rooms for Rent' Abound as Economy Drags

Experts say many people turning empty rooms into needed cash.

PLEASE NOTE: This news article is from the USA.

SARASOTA | Isabella Wasser and her fiance, Thomas Ganter, are looking for a roommate to share the 2,600-square-foot home that they already share with Wasser's adult son, four dogs and three birds.

One room is unoccupied, and the couple wants to rent it out, even if it means a crowding a stranger into the family home.

"We're actually renting ourselves, and I really don't think the owners mind. They know what the situation is," said Wasser, 48, a graphic designer who has not been able to find steady work in a year. "I think if we owned the house, we'd be in foreclosure by now."

Florida's recession and foreclosure crisis is prompting people to take unusual steps in a desperate gambit to make mortgage payments, stay afloat financially and even avoid homelessness. People who once might have tapped into their home equity are instead parlaying empty rooms into much-needed cash.

While statistics tracking these ad-hoc living arrangements are elusive, housing experts say they are rising across the country. More people seeking housing assistance or falling into homelessness are clear secondary indicators of the trend.

Single-room rentals are often for tenants and homeowners who have run out of options. They frequently accept verbal rental agreements that can be short-lived and end in a sour parting.

Homeowners trade a loss of privacy and the risk of theft or other crimes for the promise of money for groceries and expenses. For renters, the arrangement eliminates the daunting burden of security deposits and other upfront costs.

"There might not be a lot of choice," said Linda Couch, deputy director of the National Low Income Housing Coalition, a Washington-based nonprofit. "I think these are people who probably cannot go to the housing authority for assistance."

Neither Wasser nor Ganter have a car. Ganter drives a scooter to get to his job fixing power line transformers for a local company. After losing the last tenant, a day laborer who ran into health problems, the couple used grocery money to cover May's rent.

Wasser and Ganter have had five people rent temporarily in the past year. They called the police on one couple whose fighting got out of hand.

Others say they put up with major and minor inconveniences, ranging from inappropriate nudity to renters eating all the food in the refrigerator.

"We're just asking for someone who's sane and doesn't want to party all the time." Wasser said.

Sarasota has long struggled with affordable housing issues and the downturn exacerbated them.

The waiting list for the Sarasota Housing Authority's voucher program, known as Section 8, has been closed since 2004. Waiting lists for subsidized apartments are up 36 percent in the past year and continue to grow.

"If we opened up the Section 8 waiting list, I think there would probably be thousands of people applying," said housing authority Executive Director Bill Russell.

According to the University of Florida Shimberg Center for Housing Studies, even before the current downturn, working families nationwide were having more difficulty keeping up with rent and mortgage payments.

Carol and Mark Tuttle may open their 1,100-square-foot Bradenton home to another roommate. The tenant renting from them left recently, leaving them without $600 a month in much-needed income.

"We don't know what to do, and we're living off of credit cards," said Carol Tuttle, 47.

She refinanced during the boom and now owes $150,000 for a house that might be worth half that. Carol's 18-year-old daughter is staying at the house, and Mark Tuttle's son and daughter from another marriage stay with them on weekends, leaving space at a premium.

But with Carol suffering a back injury and unable to work, and Mark facing bankruptcy, they rely on a roommate to make ends meet. They need the cash, even if budgeting experts do not recommend it.

Carolyn Gregov, director and general manager of the Sarasota County extension of the University of Florida, counsels against renting a room to shore up budget holes, citing taxes and local codes that regulate boarders.

Instead, Gregov recommends people study their finances closely, then cut costs, save and look for other ways to generate income.

But many renters say they need money immediately.

SOURCE: The Ledger