Shared House Room Allocation Rent Auction
March 2, 2016 5:07 AM Subscribe
Is there an auction-like system to allocate rooms and divide rent in a shared house with very different rooms?
A group of 5 of us are moving in to a new shared house. We haven't yet picked rooms, but some are definitely more desirable than others.
We could all afford an equal split of the rent, or a bit more, but we need everyone to feel like they're getting a decent deal. None of the rooms are terrible, but there's at least one which nobody would choose unless it was a bit cheaper - probably by about 20% but I have no rationale for that figure. It's more complicated than just size.
Is there some kind of system where we can bid for rooms, or declare our preferences, and divide rent accordingly? Obviously it's not like a normal auction because with this, everyone HAS to get one of the rooms, and as the price of one goes up, the price of the others goes down, and vice versa.
A group of 5 of us are moving in to a new shared house. We haven't yet picked rooms, but some are definitely more desirable than others.
We could all afford an equal split of the rent, or a bit more, but we need everyone to feel like they're getting a decent deal. None of the rooms are terrible, but there's at least one which nobody would choose unless it was a bit cheaper - probably by about 20% but I have no rationale for that figure. It's more complicated than just size.
Is there some kind of system where we can bid for rooms, or declare our preferences, and divide rent accordingly? Obviously it's not like a normal auction because with this, everyone HAS to get one of the rooms, and as the price of one goes up, the price of the others goes down, and vice versa.
The fairest way would be an annual lottery as to which room you get, with everyone paying the same amount. The actual room is just a portion of what you pay rent for, a 20% difference seems hugely excessive.
An auction feels like it would be a nightmare... which room is auctioned first, what if the total of the auctioned rooms doesn't equal the rent...
posted by HuronBob at 5:13 AM on March 2, 2016
An auction feels like it would be a nightmare... which room is auctioned first, what if the total of the auctioned rooms doesn't equal the rent...
posted by HuronBob at 5:13 AM on March 2, 2016
When we did this, we took the average, decided how much more the best room should be and how much less the worst room should be, and then based all the intermediate room prices on that scale. I think it might have gone from $400 to $550 or $600? Then, knowing that info, we went around the table and stated our first choice for the room we wanted. (Miraculously, all six of us picked different rooms!)
posted by showbiz_liz at 5:13 AM on March 2, 2016 [2 favorites]
posted by showbiz_liz at 5:13 AM on March 2, 2016 [2 favorites]
There's this website that claims to have implemented a number of algorithms from the academic literature (economics and public choice) regarding fair division. Here's their tool for fair rent division and room assignment that's based on each renter essentially bidding on the different rooms of the dwelling. I've never used it so I can't vouch for it but it does seem interesting.
posted by mhum at 11:37 AM on March 2, 2016
posted by mhum at 11:37 AM on March 2, 2016
My friend helped create a site that does exactly this: The Rent is Too Damn Fair. I haven't used it personally.
posted by dormouse at 12:40 PM on March 2, 2016 [1 favorite]
posted by dormouse at 12:40 PM on March 2, 2016 [1 favorite]
Came here to recommend The Rent is Too Damn Fair, but I see I was beaten to it. (Disclaimer: one of the creators is a former co-worker.)
posted by madcaptenor at 2:05 PM on March 2, 2016
posted by madcaptenor at 2:05 PM on March 2, 2016
Response by poster: That first answer is exactly what I was looking for.
The division and allocation it came up with is one in which nobody would want to swap with anyone else. Unfortunately, because of various other factors, that isn't the same as making everyone happy. It's a shame that the maths behind it is so opaque.
After reading about how Spliddit and The Rent is Too Damn Fair work, I don't have much confidence in those, but we might try them as well, just for a second opinion.
posted by PJMcPrettypants at 5:20 AM on March 5, 2016
The division and allocation it came up with is one in which nobody would want to swap with anyone else. Unfortunately, because of various other factors, that isn't the same as making everyone happy. It's a shame that the maths behind it is so opaque.
After reading about how Spliddit and The Rent is Too Damn Fair work, I don't have much confidence in those, but we might try them as well, just for a second opinion.
posted by PJMcPrettypants at 5:20 AM on March 5, 2016
The math isn't actually that bad, if you look at the attached article:
Sorry to hear that you had to deal with the fact that illogical people aren't always satisfied with logical solutions. The calculator would totally work out every time for Vulcans!
posted by chrisamiller at 9:54 AM on March 15, 2016
Sorry to hear that you had to deal with the fact that illogical people aren't always satisfied with logical solutions. The calculator would totally work out every time for Vulcans!
posted by chrisamiller at 9:54 AM on March 15, 2016
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http://www.nytimes.com/interactive/2014/science/rent-division-calculator.html
posted by chrisamiller at 5:12 AM on March 2, 2016 [11 favorites]