Utilities - typically shared

In addition to rent, there are other ongoing expenses such as utilities (electricity, gas, water), internet, and any other services you may require. Again, these costs will typically be split between the flatmates or one person may be responsible for each bill.

Bond - typically shared

It's also worth considering one-off costs such as a bond (usually equal to four weeks' rent) and any fees charged by the letting agency or landlord. You may also need to purchase household items such as furniture, kitchenware, and bedding, depending on what is already provided in the flat.

Repairs and maintenance - shared or personal

Finally, it's important to budget for unexpected expenses such as repairs or maintenance. As a flatmate, you will likely be responsible for contributing to the cost of fixing any damage caused by you or your flatmates

Note

There are a couple of things that can happen if you cause damage to your rental property:

→ If you cause damage to the rental property intentionally, and your landlord is covered for Deliberate Damage, they can lodge a claim to help repair the damages caused by you, the tenant. In saying this, it is likely they will try to recover these costs later down the line from you and will probably kick you out!

→ As of 2019, legislation was also passed so that tenants who cause careless damage to their rental property will be held liable for the cost of the damage in up to 4 weeks rent or the landlord's insurance excess.

Groceries - shared or personal

When you are flatting, it's important to consider groceries as a significant expense in your budget. Unlike when living with parents or in a dorm, you will need to purchase your own groceries and take responsibility for the cost of food. The cost of groceries can quickly add up, especially if you are not used to budgeting for them.

Tips:

→ Plan your meals and shop smart to make the most of your budget

→ Buy in bulk

→ Choose less expensive brands

→ Cook meals at home rather than eating out

→ Split grocery costs with your flatmates or take turns doing the shopping to ensure that everyone contributes fairly to household expenses.

Insurance - personal

Insurance should be considered an essential expense in your budget. While your landlord may have insurance for the property and damages, it's important to protect your own personal property and also have cover for unplanned situations such as natural disasters (e.g. floods, earthquakes, cyclones, etc.) that may require you to seek temporary accommodation elsewhere. Taking out contents insurance (personal liability is usually covered within) is a great idea. Jump to the section below to read more about what these cover.

Personal expenses - personal

It's important to consider personal expenses as part of your overall budget. Personal expenses can include things such as clothing, entertainment, personal care products, specific diet supplements and so on. While these expenses may seem small compared to rent and utilities, they can quickly add up and impact your overall financial well-being.

Tips

→ Create a personal budget

→ Create a monthly/weekly shopping list that accounts for items that would be shared and split the costs for these

→ Look for sales! It's time to start looking through mailers, signing up to newsletters, subscribing to your favorite retailers/services and following their socials. By getting alerted of sales, discounts, giveaways and promotional periods, you can take advantage of them which can help save a lot on costs.

2. What is the difference between flatting/boarding/renting?

Flatting

Flatting is when multiple people, often unrelated, rent a property together and share common areas such as the kitchen and living room. Each person has their own bedroom and may share other facilities such as bathrooms and laundry. Flatmates generally split the cost of rent and other household expenses.

Boarding

Boarding typically involves renting a room in a property where the landlord or owner also lives. Boarders usually have their own bedroom but may share other facilities such as bathrooms and living areas. Boarding arrangements can be more structured than flatting, with the landlord providing meals and other services in addition to accommodation.

Renting

Renting usually refers to a single tenant or family renting a property from a landlord. The tenant has exclusive use of the entire property, including bedrooms, living areas, and facilities such as bathrooms and kitchens. The tenant is responsible for paying the rent and utilities and may be required to sign a lease or rental agreement outlining the terms and conditions of the tenancy.

4. What are some common disagreements amongst flatmates?

Rent and bills

At the top of the list, unsurprisingly, we have rent and bills. Conflict over these things can arise if one flatmate feels that another is not paying their fair share or is not contributing equally to shared expenses like electricity, water, and internet. Flatmates may also not be budgeting well and cannot pay their share towards rent and bills.

Cleaning and hygiene standards

Another super important one, which can be a make or break for flatmates, is differences in standards of cleanliness and hygiene. Some flatmates might be more meticulous and want everything spick and span, while others may be less concerned with the state of the living area, and as a result be a little more careless with cleaning and general hygiene.

Noise

It's quite simple. Some people prefer a quiet environment, more space and fewer people around, while others prefer a much louder environment, music playing all the time, having guests over or staying up at odd hours to watch TV and so on. If you are someone that likes maintaining a quiet environment, studies, or has to get up early, then having flatmates that are loud, enjoy staying up late and have a lot of gatherings will likely cause conflict down the line.

5. How do you resolve issues?

It may sound simple, but communication really is key.

→ It's important to talk openly and honestly as early on as possible if you start noticing you and your flatmates are not seeing eye to eye or if there is tension between people. At the end of the day, you don't want to be uncomfortable in a place you consider home, so talking it out quickly will help.

In saying this, we know it can be a bit awkward to address issues, so before you start flatting, or when looking for people to flat with, we recommend establishing a set of questions to ask potential flatmates in order to minimise the risk of running into issues later down the line.

→ Think about what's important to you, what makes you feel comfortable when living at home, what type of behaviour you would not be able to tolerate, or living standards you would not like to live in. By doing this you are way less likely to end up living with people who you don't get along with, or aren't on the same page with.

→ We compiled a list of questions at the end of this guide that would be useful to think about when looking for flatmates. Click here to see them.

Insurance-related FAQs About Flatting

1. Do I need insurance when flatting?

Having insurance may be something that is laid out in your tenancy agreement and your landlord may require you to have it, but if it's not set out, we would still say it is highly recommended to have. Of particular importance, contents insurance insurance is worth looking into.

Contents insurance

Contents insurance will cover your personal possessions, ranging from furniture, jewellery, electronic devices such as laptops, tablets, and smart watches and can also provide cover for sporting goods from bicycles to kayaks. If any of your belongings are stolen, lost or damaged due to events such as fire, flood, or theft, contents insurance can help cover the cost of replacing them. Remember that your landlord's insurance will not cover your personal belongings.

For example, if your flat gets broken into, and your laptop is stolen, your landlord will claim damages to the physical property (i.e. broken window), but not your laptop as it's not theirs or part of the property.

Contents insurance is also great as it usually includes personal liability cover. Personal liability cover provides coverage for damages or injuries you may accidentally cause to someone else or their property.

For example, if you accidentally spill your coffee on a friend's laptop or damage a fixture on the rental property, you could be held responsible for the cost of repair or replacement. Personal liability insurance can help cover those costs and protect you from pulling money from your own pocket.

2. Does my landlord's insurance cover my valuables?

No, it will not cover your belongings. Landlord insurance is taken out to safeguard the physical property and the landlord's interests. This can include the cost of repairing damages to the property or loss of rental income.

It is crucial to understand your tenancy agreement and inclusions and exclusions of your contents insurance should you choose to take it out. Different insurers will offer different policies, so it's important to compare your options in order to find the right cover for you.

Tip

→ Our Market Scan feature can quickly search for and compare contents policies from different insurers and let you know the benefits and price of each policy within a matter of minutes. You can then see which benefits some insurers include and don’t include compared to others, all at a quick glance. Try it here.

3. Will my parent's or flatmate's insurance cover me while I'm flatting?

The terms of your parent's or flatmate's insurance policies will determine whether or not you are covered. Usually, insurance policies cover the named policyholders and their immediate family members or household residents, which may or may not include you.

Typically, if you are moving into university accommodation (e.g. halls of residence), your parent's contents insurance may extend a small amount of cover to you. However, in the instance of flatting, your parents insurance will not provide any cover. You will need to take out your own insurance policies to protect your personal belongings and liability.

The same applies for flatmates. If your flatmates take out a contents insurance policy, only their interests will be protected, not yours.

Moral of the story: Put on your grown-up pants and take out your insurance! If you're already making a very adult-y decision to move out, you’ll want to get it right and have an enjoyable experience living independently. And nothing is more enjoyable than the peace of mind that you can live your best life without having to worry about accidentally setting the flat on fire after a night out, right?

4. How much does contents insurance cost?

Like any insurance, the cost of contents insurance depends on many factors.

You'll notice that the cost tends to be higher when you are younger and a little cheaper when you are older. This can be for many reasons, but typically it’s a result of:

• Younger people are statistically more likely to make claims as they are more prone to accidents or theft

• Younger people tend to have less experience managing finances or maintaining homes (more likely to leave a door unlocked or a window open, in turn making them more vulnerable to theft)

Contents insurance prices also take into account the area in which you are residing. Some places are more prone to natural disaster or crime, and as a result, insuring the contents of these homes tend to pose a larger risk to insurance companies.

The table below shows the general trend of younger people being slightly more expensive to insure, and the region of Wellington costing slightly more to get contents insurance in, than someone getting contents insurance in Auckland.

Advantages of Flatting

Saving money

If your parents or caregivers would like you to start paying rent, it can sometimes be more than what the cost would be if you started flatting, therefore the money saving aspect is the probably biggest plus side. Almost all of the big costs are divided between all your flatmates which can make it a lot easier to live in a prime location or a nice place that you perhaps would not be able to afford on your own just yet.

Social life

Living with flatmates can be fun and a way to develop new friendships and networking connections. This is particularly advantageous if you are from a different city or living away from your family and friends. A lot of the time, you’ll end up meeting their friends and if you get along well with your flatmates you’ll probably find yourself going out with them instead of just hanging around with them at home. If you find the right flatmates it truly can be like a new family.

Sharing chores

An underrated bonus to flatting is the divvying up of chores and responsibilities. Not only is it great for your own life skills, but it also allows you to have more free time to focus on other aspects of your life such as study, a hobby or work.

Safety

Living with a few people can provide a sense of security, particularly if you are living in a foreign area. Living on your own can be quite daunting so having people around can help you to feel more secure.

Disadvantages of Flatting

Lack of privacy

Sharing common spaces such as the kitchen, living room and bathroom can be a bit much for people who value their personal space, or ability to control their surroundings. Even being in your own room can feel like you have a lack of privacy sometimes, depending what your flatmates are like and how big the property is.

Conflict with flatmates

For multiple reasons, arguments can occur between flatmates, particularly where there are differences in cleanliness, personality, lifestyle, schedules, preferences and so on. This is why it is important to take your time to find the right flatmates. Conflict with the people you live with can be an awful stress over your head, and with everything else you probably have going on in your life, having a negative, conflict-ridden living environment is not a disruption you’d want to deal with. And even if you proceed with caution to find good flatmates and conflicts still arise, remember communication is key.

Lack of control

If you are someone that struggles with compromising, then you are in for a rude awakening… When it comes to flatting, you will have to meet people halfway and find a middle ground on certain household decisions. Giving up some control over living space and lifestyle choices is something you may have to come to terms with. In this sense, you may feel a little less independent and struggle if you have specific preferences for the way you like things being done.

Tips for Flatting

1. Get your insurance sorted

Not to scare you but there are quite a number of flatting horror stories out there.

Some stories are about bad flatmates, some are about lack of insurance being in place, and sometimes they're about having bad flatmates that give you more reasons to need insurance. Theft coverage doesn't just mean someone breaks into your house; what if they are already inside?

The bottom line is that bad or unexpected things happen every day, and it is hard to fully trust people, especially if you have not known them for long. The risk will also start feeling greater when you realise you have to fend for yourself. Having insurance in place such as contents will help cover expenses which can crop up unexpectedly.

Without insurance, you would have to pay out-of-pocket to replace your belongings or compensate for damages. Peace of mind will always be there with insurance, and it’s often something flatters overlook, particularly if you are younger or have been living with parents or caregivers, as it may not have been something you dealt with but your caregiver certainly has.

It's also important to understand the location you are living in. What's the crime rate like? Is it in a high-risk zone for natural disasters? If so, make sure before moving in that your landlord does in fact have adequate and appropriate insurance in place for any circumstances that could arise!

2. Work out your budget

Even though you are saving money by splitting big costs, flatting can still be expensive, especially if your goal is to eventually own a house, save for a trip or if you simply have more expenses or lifestyle preferences. As a result, budgeting is super key for financial freedom and keeping stress-free. When creating your budget, make sure you are really accounting for all your expenses within a week/month.

Tip

→ Sometimes it can be hard to keep track of your expenses or maybe you are new to budgeting. Lucky for you, there are plenty of apps out there that make budgeting a breeze! Check out our blog on the best budgeting apps on the market right now so you can manage your money effectively.

3. Create flat rules

Having flat rules is something you should consider or ask your potential flatmates about. Having certain rules that are adhered to by all flatmates will help establish a comfortable and respectful living environment. It keeps everyone on the same page and is a healthy way of creating boundaries which will facilitate trust and positive relationships going forward.

4. Interview your potential flatmates

Establishing a set of questions to ask your flatmates before moving in is essential to ensure a comfortable and harmonious living situation. Living with flatmates can be a great experience, but it can also be challenging if expectations are not aligned. By asking questions about living habits, schedules, preferences, and boundaries, you can avoid potential conflicts and misunderstandings. For example, you might want to ask about noise levels, cleaning responsibilities, shared spaces, and guest policies. This conversation will help you understand your flatmates' lifestyles and values, and it will also allow you to communicate your own. Ultimately, a clear understanding of each other's expectations and preferences will lead to a more positive and enjoyable living experience for everyone involved.

Some questions to consider asking are:

→ How do they manage chores? Some places have a clear division of chores, some don't.

→ What costs do they expect to be split?

→ What do they consider reasonable power/water usage? Flatmates can run into arguments because of someone taking unusually long showers or leaving something on for too long that chews power.

→ If it's a situation where not everyone is on the tenancy agreement, how much notice is expected when you move out, and what happens if someone else moves out but you can't fill the spot? Is everyone expected to chip in or is it on the head tenant(s)?

→ Are you allowed overnight guests, and if so how many times a week is reasonable for everyone? Having a partner stay over is a very common issue for flatmates especially when they are using all the facilities but not paying.

→ What are everyone's work schedules like? Since you will be sharing facilities, it's good to know that you can work into your flatmates schedules so no one is running late or waiting for a shower to be free and so on.

→ Do social gatherings or parties occur often? If you are not into the party or social scene this may be an issue for you to tolerate.

Of course there are many other things to ask, especially around personality and preferences of flatmates, so make sure you think about things that are important to you and frame a set of questions around those.

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