Can you split rent payments?
Split rent payments are partial payments made by a tenant with consent from the landlord. They can be hugely benefit for the tenant, and from the landlord’s perspective, keeping tenants happy is key to efficiently managing a property portfolio.
In the following guide, we’ll address questions such as…
- Can I split my rent payment?
- How can I split my rent payment?
- What are the reasons for splitting a rent payment?
…on behalf of tenants while also addressing how split rent payments work for landlords and how to reduce the risk of complications.
Is it possible to split rent payments?
A split payment occurs when the tenant “splits” their rent payment over the course of the payment period, rather than paying it all in one go. So, if their rent is $1,000 a month, they can split it by paying $500 at the beginning of the month and another $500 at the end.
Split payments may be easier for the tenant. Some tenants use them for money management issues, but for the majority, split payments are an easy way to divide financial obligations between multiple people in a house-share situation.
In any case, split payments are possible, but only if the landlord consents and has the means to process such payments.
How can landlords make payment splits easier for tenants?
The problem with split payments, from the landlord’s perspective, is that those initial payments are classed as “partial payments”, as they don’t cover the full cost of the rent. In some states, this can present the landlord with an issue if the rest of the money doesn’t arrive, as evictions can get complicated if a partial payment has been made.
As a landlord, the first step to accepting split payments is to make sure you are comfortable with the setup and understand the potential issues. Check your local tenancy laws and consult with a legal professional if you’re not sure.
If you decide to offer your tenants this option, you can make the process easier for them by using a rent management system like MRI RentPayment. Not only does it streamline many key and often complicated processes, but it also provides tenants with options for simple online rent payments.
If an existing tenant is requesting to change their single payment into multiple payments, check the tenancy agreement first. Many agreements stipulate that fees will be charged if a rent payment is not made in full by a specific date. If the tenant wants to split payments, they may wish to tweak the dates, and this could mean they end up accumulating late fees.
How can tenants split rent payments?
Although most landlords will be wary of allowing split payments from a single tenant, they are usually more receptive if there are multiple tenants. That way, everyone can pay their share directly to the landlord and no single tenant needs to chase the others down every month.
There are a few ways to effectively split payments between multiple tenants:
Divide it equally
Everyone in the property pays an equal share regardless of how long they have lived there and how much they make. This is usually the preferred option for student accommodation and groups of friends, whereby everyone typically has an assigned room/space in the property.
Assign different rents for each room
If some rooms are bigger than others, the fairest option might be for tenants in big rooms to pay more. It’s not good practice to start measuring rooms and charging by the inch, but a tenant with a shoebox room shouldn’t really be paying the same as a tenant with a spacious room and ensuite.
Split rent by income
Some tenants, particularly close groups of friends, may opt for a more socialist approach, letting those who earn more pay more. Of course, it’s only fair if the one paying the most money actually agrees with the setup.
Simplify rent payments with MRI RentPayment
Whether you’re giving your tenants the option to split payments or pay using multiple methods, MRI RentPayment was designed to simplify the entire process and make life easier for both the landlord and the tenant.
- Reduce admin hours by eliminating the need to collect rent checks and sort payments
- Give your tenants more options and more flexibility
- Manage anywhere from 1 property to thousands
MRI RentPayment is backed by property experts with more than 20 years of experience. So, if you want to offer split payments and other benefits to your tenants, request more information about MRI RentPayment today.
FAQs about splitting rent payments
Should you split rent equally?
It depends on the tenants and the property. Some tenants prefer to split things equally while others feel that the fairest option is to split payments by income or room size. It’s something that tenants should discuss as a group, with the goal of finding a solution that is fair to everyone and will thus avoid financial arguments further down the line.
Can you split rent payments between large groups of tenants?
Yes. If the landlord has the required system in place then rent payments can be split between any number of payees.
How do most couples split rent?
While splitting by income doesn’t always work with groups of friends, it’s more common with couples. They may also agree that if one person pays most or all of the rent, the other handles the utilities and other bills.
How do roommates typically split bills?
The first step is to create a list of all bills, along with the total amounts. Everyone can then get together and either agree to share the costs equally or assign different bills to different tenants—tenant 1 pays for media subscriptions, tenant 2 handles power, tenant 3 deals with maintenance, and everyone chips in for the rent.
Severn Management Company Uses RentPayment to Improve Payments Experience
Learn about how Severn Management Company, a real estate development company based in Annapolis, M.D., uses RentPayment to reduce the time and workload of processing payments and improving the payments experience for residents.