What fits your budget: Roommate or small space?

Rent is probably the biggest single expense you pay each month, so what rental lifestyle fits your budget? Living alone comes at a premium. Living with a roommate (or two) can give you more space, more options and nicer surroundings. So what do you do? A smaller space all your own? A bachelor pad? A basement apartment? Choosing a neighbourhood based on price rather than your lifestyle?

There are always options.

One good option is to consider a smaller apartment than you might have had in mind: for example, if you were initially thinking of a two bedroom, opt for a one bedroom or a bachelor.

If you’re living alone, a bachelor can be an affordable rental option. Bachelors tend to run about three-quarters of the cost of a one bedroom. A bachelor on the ground floor of a luxury building can offer the same benefits as it does to the tenant who lives in a larger apartment in the same building such as good location, professional management, attractive lobby, underground parking, laundry facilities, good closets, and upgraded suite with renovated kitchen and bathroom. And the best surprise of all is that the rent could be considerably less!

With creative furnishing, you can have more space – a living and dining space by day, a bedroom by night. With a lower monthly rent, you will have more money for extras such as parking, cable, phone and hydro along with your other general expenses such as food, clothing, transportation, recreation and savings. And you will need that much less for first and last month’s rent deposit.

Another advantage of a bachelor apartment is that it will cost less to furnish than a one bedroom – this is much easier if you are a student, on a fixed income or just starting out in your career. Of course, the major advantage is that you will have total privacy and will not have to interact with anyone – though this has its pros and cons.

If you like having more space, more selection or want to be in a more pricey neighbourhood because it's the best fit for your lifestyle (close to work/school; close to your usual amenities; where your friends/family live), consider a roommate. In a two bedroom with a roommate, you’d probably be paying about the same as you would for a bachelor. By sharing the cost of the rent, utilities, and possibly groceries, your basic monthly expenses would be substantially less than if you rented a bachelor. The trade-off is privacy. You'd have you own room and more space beyond - but it would be shared.

However, living with a roommate can be challenging. Some people choose to live with a friend or relative they know beforehand, while others seek potential roommates through friends or online sources. If you do, be sure to get several personal and professional references from the person and check them out carefully. You can live successfully with someone you know beforehand, or even with a person you may meet through someone, as long as you have a mutual understanding of what the expectations are in terms of level of cleanliness, noise and how expenses will be managed (for example, will one person pay the bills and the other reimburse them? Can you tolerate their noise levels, their personal habits and their level of cleanliness).

If you’re looking to rent, stick with something that fits your budget: renting a bachelor or sharing the expenses of renting with a roommate are two equally attractive options. It’s up to you!