How to split bill for a apartment? (money, cost, paying)

[The great chase]

hey all,
this is the best section I could think of for posting this kind of thing..

Right now, my friends,housemates and I are going to get a place because we need a place to stay while in college (we are in Cali).

We are going to get a 3 bedroom townhouse - all the rooms have private bathrooms.

Two people want single rooms with private bathrooms and have agreed to pay more
Two people with stay in one room.
I will be staying in the living room and If i need to use the bathroom, ill go to the room that is being shared with the other people.

Now, the total amount of rent will be 2300 per month.

Right now, my train of thought is... the people with single and private bathrooms will have to pay more of the rent because they have private bathrooms. The two who are sharing will split the cost for one room, and ill be paying a reduced cost for the living room.

2300/3 = $766 per month <--- that is the price of a single room and private bath, but I will take some money off because they lose access to the living room.

2 x (Private bathroom + room) = 675 per month
1 x (Shared room with 2 + bathroom shared with 3 ) = 475 / 2 = 237.5 each
1x (Me in living room + shared bathroom) = 475

This will all add up to 2300.
which is $200 per month for a private room that comes with a bathroom, this seems like too much

Can anyone check my logic for me?

[Butterfly4u]

The great,
I don't understand your last sentence in your post.
Everything sounds fine up until you get to that.
What do you mean 200.00 for a private room with bath?

[katestar]

Personally I don't think it's too much. They are getting a private bathroom and you do have to share with two other people, aside from living in the living room. I would change your math around though.

Option 1: The two private bedrooms at $650, then the other 3 people pay $333 each.

Option 2: Divide the entire rent by 5 = 460 - then put a premium on the two private bedrooms - let's say $100/month. That would equal $560 each for the private and then divide the balance by 3 or $394 a piece - that way the private bedrooms are an extra $166 a month, which I think is perfectly fair. Why aren't you dividing the last bedroom by 3? I mean you do have to live in the living room, with everyone being able to walk by and stuff, if anything you should pay less.

I think the important component here is a simple economics principle - how badly do those two want private bedrooms. Somewhere in there is a breaking point. For example, if you charge $800 for it and one guy says forget it and picks the shared bedroom instead, then the price is too high. You have to figure out their marginal utility, so to say, of each additional dollar charged then charge both of them the lowest dollar amount that either one of them is willing to pay.

[oregonwoodsmoke]

Good luck with getting a landlord who will rent to 5 unrelated people when nobody has enough to pay the full rental amount and it is only a 3 bedroom house.

[strawberrykiki]

Originally Posted by oregonwoodsmoke

Good luck with getting a landlord who will rent to 5 unrelated people when nobody has enough to pay the full rental amount and it is only a 3 bedroom house.

Took the words right out of my mouth...

[starwind]

Originally Posted by strawberrykiki

Took the words right out of my mouth...

Simple: slumlord

They dont care at all as long as they get paid

[katestar]

Originally Posted by oregonwoodsmoke

Good luck with getting a landlord who will rent to 5 unrelated people when nobody has enough to pay the full rental amount and it is only a 3 bedroom house.

Maybe it's not fair to assume. Based on the description, it seemed like he already had it lined up....his parents could also own the house.....just a thought.

[The great chase]

This apartment was made for students - its pretty much their whole business. So yes, we got the apartment and many more options.
The two who want private rooms are ages 27 and 28 so im thinking at their point in life, they need and want the privacy.

The reason why I dont divide by 3 is because my two friends will be sharing the room with the bathroom, while I live in the living room - which counts as a single room(with no bathroom). which is why I pay for a single room and the other two split the bill for one.

[JanND]

Why is the room w/ shared roommates so much cheaper than the private bedroom. I think I'd tack a hundred on to theirs, and take a hundred off yours. You are making the most sacrifice and paying more it seems.

[The great chase]

Originally Posted by JanND

Why is the room w/ shared roommates so much cheaper than the private bedroom. I think I'd tack a hundred on to theirs, and take a hundred off yours. You are making the most sacrifice and paying more it seems.

They get charged about $100 less than private bathrooms because they will be sharing the bathroom with me. So thats about 575 - 100 = 475. Since two people will be sharing the room, it get divided by two, 475/2 = 237.5 each.

The two private singles will be 675. After adding that all up, 475 is remaining which is what I will pay.

However, Im happy to hear I should pay less.
Ill show this post to everyone so I can give them a justification.

also: the living room is bigger than a normal room, but it dosnt have a closet so I think it evens out.