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Consider a Roommate to Save on Soaring Housing Costs
With inflation at a 40-year high it can be challenging to make rent on a fixed income
Tetra Images/Getty Images The Golden Girls were on to something. With rents and energy prices soaring, taking on a roommate or two doesn’t seem like such a bad idea. Rose, Dorothy, Sophia and Blanche showed us how it's done. The pandemic and soaring housing costs are making it a reality. It shouldn’t come as a surprise with inflation hitting 8.5 percent in March, . The costs of energy, housing and food drove the surge, like in previous months. Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. Older adults on fixed incomes are particularly vulnerable to rising housing costs. After all, the 5.9 percent cost of living increase in Social Security benefits isn’t keeping up with inflation. To free up cash, an increasing number of 50 and older Americans are opening their homes to roommates to share in the costs and/or help with the chores. It's a trend that’s poised to continue in the years to come. By 2035, 11.5 million renters will be 65 and older, according to the Joint Center for Housing Studies of Harvard University. Many will need help covering bills. “At this point, you have to think outside the box because housing costs are going up drastically and people on fixed incomes aren’t keeping up,” says Martha Shapiro, director of programs at Senior Concerns. “It’s a great solution if done carefully.” Money saver if done right
Opening your home or rental to roommates may seem overwhelming, especially if you’ve lived alone for a while, but it can be a big money saver. Not only is a portion of your rent or mortgage covered but you can split utilities, entertainment and food. Depending on the health and age of your roommate, that person can share in the chores and can be a companion. All of it sounds great on paper but to make it work requires a lot of soul searching, due diligence and attention to detail. After all, you may have the best roommate in the world but if you prefer to be alone it likely won’t work out. Entertainment $3 off popcorn and soft drink combos See more Entertainment offers > “Ask questions about their lifestyle both in terms of work and free time,” says Carberry. You'll want to know if they are a smoker, enjoy a drink, and have friends they plan to entertain frequently, he says. Do your due diligence
Running a background check can be a great way to get a sense of who your potential roommate is. It will set you back $50 to $100 but you’ll find out a treasure trove of information including: Employment history Criminal activity EducationDriving record Credit historySocial media If you don’t feel comfortable checking the background of potential roommates there are matching services around the country focused on finding roommates for older adults. The Ventura County Area Agency on Aging’s Homeshare Program is one example. This free service for qualified residents matches people to share in housing costs. Background checks and interviews are conducted for you to find your perfect match. “We have a lot of older adults still in their own homes and now have an extra bedroom or are house poor,” says Shapiro. “This helps get somebody in the spare room or to cohabitate and reduce rent.” AARP NEWSLETTERS %{ newsLetterPromoText }% %{ description }% Subscribe Donna Fuscaldo is a contributing writer and editor focusing on personal finance and health. She has spent over two decades writing and covering news for several national publications and websites, including The Wall Street Journal, Forbes, Investopedia and HerMoney. MORE FROM AARP AARP NEWSLETTERS %{ newsLetterPromoText }% %{ description }% Subscribe AARP VALUE & MEMBER BENEFITS See more Health & Wellness offers > See more Flights & Vacation Packages offers > See more Finances offers > See more Health & Wellness offers > SAVE MONEY WITH THESE LIMITED-TIME OFFERS