Co-op house finances - need advice

[ButterflyBreath]

Hi Guys!

I am starting a co-op house and am wondering how I should keep track of the utilities. I have lived in a co-op house before for a short time, and the owners took care of the finances and have a method for keeping track and splitting the utilities, but they didn't share it with me (and I didn't ask).

Can anyone share how their house does it or ideas on how I could do it? It's a 5 bedroom/member house, and I need to figure this out ASAP.

Thanks!

[iris lilies]

Hi Guys!

I am starting a co-op house and am wondering how I should keep track of the utilities. I have lived in a co-op house before for a short time, and the owners took care of the finances and have a method for keeping track and splitting the utilities, but they didn't share it with me (and I didn't ask).

Can anyone share how their house does it or ideas on how I could do it? It's a 5 bedroom/member house, and I need to figure this out ASAP.

Thanks!

Who is really on the hook for the utility bills?

[redfox]

Make an agreement to split the expenses evenly, and do the math regularly. Have a back-up account to draw from that everyone ends with $25 to start with, in case someone flakes out. Keep good records, and have logical consequences for non-payment. Like eviction.

[ButterflyBreath]

The lady who owns the house is ultimately responsible for the mortgage and utilities. She and 3 of her children are living here. One is only 15 and will stay. The other two are adults and won't contribute financially despite being given MONTHS to do it, so she's kicking them out. I've been paying rent since February. Now she is financially unable to pay all the bills (minus what I give her) so we are renting out rooms. We have a small organic farm here as well, and it's a beautiful log cabin on Lookout Mountain. We have been moving towards turning it in a co-op since I moved in in November of 2012.

[ButterflyBreath]

I guess I'm just going to do something in excel to keep track of the finances. I was hoping there was already an excel document out there! Can't find one. Oh well.

[iris lilies]

The lady who owns the house is ultimately responsible for the mortgage and utilities. She and 3 of her children are living here. One is only 15 and will stay. The other two are adults and won't contribute financially despite being given MONTHS to do it, so she's kicking them out. I've been paying rent since February. Now she is financially unable to pay all the bills (minus what I give her) so we are renting out rooms. We have a small organic farm here as well, and it's a beautiful log cabin on Lookout Mountain. We have been moving towards turning it in a co-op since I moved in in November of 2012.

I don't know if you really mean a "legally recognized" coop or not, but since I doubt it, I would likely charge based on the assumption that 1 room will be vacant at all times, so I'd figure: 4 rooms will be occupied and charge each inhabitant 1/4 of the utilities estimated on budget billing (12 month average.)

That way residents know the costs each month, it is always the same amount, and you are covered in the likely scenario that 1 room is vacant at a time. Save whatever amount is leftover from all payments because in times of low occupancy, you will need that. If you will regularly have more than 1 room vacant then divide the cost of utilities among the shares that ARE occupied. Perhaps that number is 1/3.

[redfox]

Butterfly, try Quickbooks. It does cost $, so excel would be cheaper. As would an old fashioned ledger journal.

[SteveinMN]

Or use OpenOffice -- a free, open-source alternative to Microsoft Office (Word/Excel/Powerpoint/ad nauseum). Or try free budgeting software like GnuCash, HomeBank -- well, there's a bunch of those, depending on the computer platform you use and how you like to budget (envelope system, etc.).