Advice for opening an account to pay rent

HJROakley

Hi everyone,

I come on here often to read, but this is my first post asking a question(s)...

At the start of next year I'm looking at renting a house with a couple of mates, for which I'd like to set up a new bank account to keep any money put towards rent/ food bills/ utilities seperate from any spending money and savings I earn. The two others I'm looking to rent with both have money coming in from student bursaries etc, while I have a full time job. I was wondering whether it's a good idea to open a new account that we can all deposit into for said reasons - this way we can all put an equal amount in each month (plenty to cover costs) and at the end of the year, split left-overs 3 ways. It would be good to know what type of account is best for this, and any problems that may come from it.

Thanks in advance,
Harry

AnonymousForObviousReason

Problems
1) You're students and likely won't all be that responsible for the entire year (sorry offensive sounding but honest).
2) Getting a joint bank account would mean all would have access and anyone could clear it out for that 100/1 shot with 3 legs they know will win.
3) Money screws up friendships - don't particularly pick your best drinking mates that always buy the next round (but are also skint) but think about who can actually pay.

Good Points
1) Nice sensible plan that may keep you all in line with peer pressure.
2) If you have enough saved there may be able to cover those months if someone's a little silly.

Personal Preference
Personally after a few problematic shares, I found the best way to do this is:
1) Split the bills evenly so an individual is responsible for one bill, that way if the person refuses to pay it comes down to them and their credit rating (as you pay the bills not in their name first, default on the other bill in their name).
2) From your name I'm going to bet you're a boy (like me). Unless there is an anally retentive (wannabe accountant) chap amongst you, give the responsibility of the bank account to a girl in the group (if there is one). Yes sexual equality and all, but men are generally physically stronger than women, women are generally better like making the correct decision between paying rent and buying !!!!!! (If you want to know which one it is I . Yes, yes, yes that's sexist and there are exceptions (I've been thrown across the room by several of the weaker sex) but I'd need to ask my GF - btw in 10 years time you won't be any different or grown up). Anyway I'm talking about odds here - you know the people involved and I guess you may well be the anally retentive one.
3) Get a joint clubcard as well - end of the year ... PARTY!!!!
4) If you can just agree to split the bills evenly. Phone bills can be a sticking point (the cheap one that disagrees and wants to itemise everything will still complain when they find out they owe more on a bill), make sure you have inclusive evening calls and unlimited internet (perverts ... yes you too missy in the back), maybe agree that any premium rate numbers will be paid by the caller ... unless it's a group activity (weirdos).
5) Set all the rules out before you sign anything.
6) Prepare for one person to be a complete !!!!, and don't get wound up. I've had someone that said (when moving out and we were clearing up the bills) because they spent some days at their girlfriends (where they didn't pay bills) they should have a reduction.

Hope this helps, if you don't like what I said then I'm just a nasty troll - it'll be wonderful.

Sharon87

I don't the OP meant a joint account. I think he was going to open an account in his name where all the money goes.

I do this, but I'm not a student, I would be wary about doing in with other students. I would say try and get an account with an overdraft if possible so if one person forgets the rent it won't ruin your credit rating.

I use the Halifax Reward account so there's another £5 that gets credited in, more money for booze.

HJROakley

Cheers guys,

the two I'm looking at sharing with are the most trustworthy people I know and I'm pretty sure I wouldn't be up to renting if it was with anybody else, so although still a risk I'm not too worried about any of the three problems listed by AnonymousForObviousReason.
I happen to be the anally retentive one (at least when it comes to money), so I'd be the one keeping a close eye on everything. The one other guy is nearly as bad though. The phone bills shouldn't be a problem either, cos I had already heard about the problem with itemised bills, but we're not planning on using a home phone. We're more likely to set up a skype line rental which I think is pay monthly. There shouldn't be a problem with premium rates either as we all know ways to get that kinda thing for free.

So, to clarify, a joint account is probably a bad idea due to possible credit rating problems? I was actually thinking more an account in my name, so I'll take the overdraft point in to account.

Harry