How to Financially Prepare for Roommate Flake-Outs

By Garth Brunner

Roommates are a great way to help you save money and split bills, especially as a struggling college student balancing work and class. However, sometimes we accidentally choose poor roommates. Someone may be an incredible friend, but they might flake out when it comes to roommate responsibilities like the bills. Even worse, some might plan to move out completely without any notice, which can put you in a bad spot financially. If you are unable to take care of your rent and utilities, it will reflect poorly on you and your credit, especially if they are in your name. You want to be prepared in these instances. Here is how to financially prepare for roommate flake-outs, if the worst happens.

Keep Extra Savings

I get it, you don’t have a whole lot of money to throw around, but if you suspect that your roommate is going to flake out and stop paying rent or move, try to stop any unnecessary spending so that you will have all rent and utilities covered on your own. Hopefully you have a savings account with some money tucked away for an emergency–whatever you do, do not touch this money unless necessary. If possible, save up an entire month’s worth of rent and utilities so that if your roommate flakes, you have a month to try and find someone new to take their place and take their part of the bills.

It may be time to reassess your budget and see if there are unnecessary costs to cut. If you don’t have a financial cushion, you may be in an extremely tough situation with flaky roommates.

Track Due Dates

After budgeting, you need to track and know when specific bills are due. This keeps you financially prepared, so you monitor how much you have in your bank account. If a recent bill was just paid automatically, you want to know when and how much that took out. Stay on a cycle so that you are financially prepared for all bills, even when roommate flake-outs occur.

Create a Roommate Agreement

If you do not already have a roommate agreement, you need to create one. This will help you financially prepare and keep everything in writing. Are you splitting everything right in half, or is it skewed due to how much each of you make? Whatever the arrangement between the two of you is, write it down and sign it so it becomes a legal document and is enforceable. Include the duration of the lease so it is clear each roommate is expected to pay throughout the full length of the lease.

Your roommate agreement should also indicate that if someone plans to move out early, you require a month or two’s notice. Outline consequences for breaking the roommate agreement, such as forfeiting the security deposit. This will protect you, both financially and mentally!

Document All Payments

It is absolutely essential that you document everything about payments and concerning behavior from your roommate. How does your roommate pay their share of the rent? Is it through Venmo, cash, or something else? First, keep a spreadsheet or document with all the payments they have made, the date, and what it was for so that if they start flaking on payments, you have that proof. Take as many screenshots as you can and save them to prove any and all documentation. If the situation becomes very serious, you may be able to take them to court to get some of that money back.

While hopefully this will not be necessary, it is easier to document everything as it occurs, rather than trying to go back and find everything if the situation gets worse.

Keep Finances Separate

You and your roommate are just that–roommates. You should not combine finances, no matter how you spend your money together. You’re not married, so you shouldn’t create a joint bank account or make them an authorized user on any of your cards. If you have an irresponsible roommate who you believe is going to flake out, it will be much safer and will protect your finances to keep everything separate between the two. Plus, this will help the aforementioned step and keep payments documented, so there isn’t any confusion on who paid for what.

So long as you prepare for the worst, you should be able to be financially prepared for roommate flake-outs. It is most important that you protect yourself, both financially and legally, so that you will not be put in the worst position. Even when you take your time and wisely choose a responsible roommate, we cannot predict the future. Save up as much as you can, and keep a document so that you will be reimbursed if court becomes necessary. If you are doing the right thing, you will ultimately be rewarded.