OPINION Renters’ rites of passage
THERE comes a time when every young person flies the coop.
When I was in my early twenties I rented a shoebox apartment in the armpit of St Kilda. What a learning experience! So I’ve decided to answer your questions. HOUSE OF THRONES SIDHARTH ASKS: I am considering moving into a share house with a couple of friends. It would be my name on the lease.
How do we manage the bills? Should they be in my name and my friends pay me? BAREFOOT REPLIES: They may be your mates now, but they will soon become allies … or enemies, Game of Thrones style.
So, like Game of Thrones, you need a document that sets out the rules of war:
Decide whose name each bill is in – but make sure everyone gets at least one.
I’d also strongly suggest you look at using bill-splitting apps.
DO I NEED RENTERS INSURANCE? MARDI ASKS: I understand that the building is covered by the landlord, but I have never bothered with contents insurance before.
I just had a quick Google and it is a minefield! BAREFOOT REPLIES: Just so we’re clear, renters insurance (which is the same as contents insurance, just for renters) covers your personal contents at your property, and usually with an option to cover your personal effects when you’re out and about.
The cost for insuring $20,000 worth of contents against fire, flood and theft ranges from $150 to $300 per year.
Bottom line? If your most expensive possession is a Bob Marley bong, perhaps you can pass on it.
Otherwise, add up the cost of replacing everything and then run the sums. FIRST TIME RENTER HARRY ASKS:
I have been invited to move into a share house with a friend of my brother’s.
He says I will have to go on the lease to replace the guy moving out. Could I get left in the lurch? BAREFOOT REPLIES: If you’re going to sign a legally binding contract, do yourself a favour and read it!
Then there are your costs: you’ll have to divvy up the bond with the outgoing tenant (and, along with the landlord, sign a bond transfer form), pay your rent in advance, and start coughing up for household bills.
So how can you survive in the big league?
Well, my advice would be to gather up all your expenses, head to the pub, have a Barefoot Date Night, and set up your buckets!
The Barefoot Investor for Families: The Only Kids’ Money Guide You’ll Ever Need (HarperCollins) RRP $29.99
If you have a burning money question, or you want to win a fight with your hubby, go to barefootinvestor.com and ask a question.
The Barefoot Investor holds an Australian Financial Services Licence (302081). This is general advice only. It should not replace individual, independent, personal financial advice.