The ultimatum game -- Hive justice edition
December 5, 2008 1:07 AM
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Two roommates live in an apartment. One gets a girlfriend. She moves in. The landlord raises the rent. They can't agree on how to split the increase. What do you think is fair? Details inside.
I'm one of these roommates. To try to avoid any bias, I'll do my best to phrase this question in neutral language. All dollar amounts are rounded to the nearest dollar.
Roommates A and B move into a 2 bedroom, 2 bath apartment in May and sign a 12 month lease. They agree that roommate A gets the master bedroom (larger, own bathroom, better view), and as such will pay a larger share of the rent. For May and June the sum of rent and utilities is $1429 per month. A pays $745 (52.1%), B pays $685 (47.9%).
Roommate A gets a girlfriend, G. She moves in late June, so the roommates adjust the division of the rent. Also, the utilities increase somewhat (more water and electricity). For July through November, the total bill is approximately $1454. A+G pay $857 (58.9%). B pays $597 (41.1%).
Although the lease states that only two people may live in the apartment, it is only in November that the landlord approaches the roommates and informs them that they are in violation of the lease and will either pay more rent in December or be evicted. The rent increases from $1300 to $1400. After some very tense conversations between the various parties, A, B, and G agree to pay the increase. Also, to accommodate financial concerns, they agree to cancel their cable and internet service.
With the higher rent and lower utility bill, the total for December is $1466, a net increase of $12. A+G and B can not agree on a new division of the rent. This is where we are now. Here are the proposals from each party.
Leaving utilities out (which have always been split 50/50 for simplicity), when G moved in A paid $100 more of the rent and B paid $100 less. (With higher, 3-person utilities included, A+G paid $112 more and B paid $88 less). Therefore, A feels that this $100 that he has been paying to B should now be paid to the landlord instead. This would mean that A+G pay $813 (55.5%), and B pays $653 (44.5%). B will not agree to this as it means he would be paying more (if cable service is held constant) than he was when it was two people, which B does not consider equitable.
B believes that the the $100 increase should be split 50/50. B believes this is fair as it preserves the ratio of the total that was paid previously. A+G would pay $863 (58.9%), and B would pay $603 (41.1%). A+G will not agree to this. A+G believe that it is fair for them to pay more to have G live there and that they have been paying $100 more. A+G believe that to accommodate the increased rent, all that needs to change is that they pay that $100 to the landlord instead of to B, and this is fair because the presence of G has not detracted from the quality of life of B so B is not owed anything to "make him whole."
I would be grateful for your opinion on what division you think is fair, whether it's one of the two proposals above or something else entirely. Right now, we're stuck. No one is budging, everyone is stressed. It has seriously hurt and threatens to end what was a solid friendship between A and B. And it's not that much money. It's damn near tragic--but no one will give.
I'm asking for two reasons. First--maybe I'm wrong. If that's what the consensus is, I'll swallow my pride and pay the extra money. Second--if the consensus is the other way, maybe there will be a new argument, a new way of looking at the problem, that will help us find a mutually agreeable solution.
Thank you very much for reading this and for any insight you can share!
posted by kprincehouse to human relations (64 comments total)
2 users marked this as a favorite
As im sure there are communal spaces in the apartment be it the bathroom, kitchen and living space. [I know you have 2 bathrooms i did read :)]. Seen as the third person would be using these communal spaces they should have to pay a portion towards the overall rent, rather than 25% of their partners rent. As that extra person takes up extra space/time in all these communal areas.
Then from that point i would start talking percentages in terms of one person receiving the larger bedroom for an increased percentage in rent.
However I will say I do not rent with other parties so my view could be incredibly wrong!
posted by moochoo at 1:23 AM on December 5, 2008 [1 favorite]