In 2025, the cost of living continues to rise, and Gen Z is feeling the financial strain more than ever. With student loans, rising rent, and an increasingly expensive job market, saving money has become a top priority for many young adults. One of the most effective ways to cut costs and even generate extra income is by becoming a flatmate or renting out a spare room. Whether you're looking for an affordable housing option or want to monetize unused space, this guide will walk you through how to make the most of shared living arrangements.

Why Shared Living is the Best Financial Move for Gen Z

Many Gen Zers are struggling to find financial stability, and shared housing presents a viable solution. Here’s why:

• Reduced Rent Costs: Rent is often the largest expense, and splitting it with flatmates can significantly lower monthly payments.
• Shared Expenses: Utilities, groceries, and other household expenses become more affordable when divided among multiple people.
• Flexible Living Arrangements: Many landlords and homeowners offer flexible leasing options, reducing financial burdens.
• Potential for Extra Income: If you have a spare room, renting it out can provide a steady stream of additional income.
• Networking & Social Benefits: Living with others can help build connections, which could lead to job opportunities or future collaborations.

How to Save Money by Becoming a Flatmate

1. Choose the Right Location

Location plays a significant role in rental prices. Instead of choosing high-cost city centers, opt for:

• Affordable suburbs with good public transportation.
• Up-and-coming neighborhoods with lower rent but great amenities.
• Coliving spaces designed for affordability and community.

2. Find a Reliable Flatmate

A good flatmate can make or break your living experience. To find the right fit:

• Use trusted flatmate-matching platforms like iROOMit,
• Join local Facebook groups and Reddit communities dedicated to housing.
• Ask friends or coworkers for recommendations.
• Conduct interviews and check references before committing.

3. Sign a Clear Rental Agreement

Protect yourself and your finances by drafting or reviewing a rental agreement that covers:

• Rent amount and payment deadlines.
• Utility and expense sharing.
• House rules and expectations.
• Security deposit terms.
• Lease duration and exit clauses.

4. Maximize Shared Expenses

To save even more money, consider:

• Splitting subscription services like Netflix, Spotify, and internet bills.
• Buying groceries in bulk and cooking together.
• Using energy-efficient appliances to lower electricity costs.
• Setting up a fair and equal payment schedule for utilities.

5. Reduce Furniture & Moving Costs

Furnishing a place can be expensive. Save money by:

• Looking for furnished flats or rooms.
• Buying second-hand furniture from Facebook Marketplace, Craigslist, or thrift stores.
• Using rental services for furniture if you plan to move frequently.
• Sharing costs on essential household items like kitchen appliances.

How to Earn Money by Renting Out Your Spare Room

If you have an extra room in your house or flat, renting it out is an excellent way to generate passive income. Here’s how to do it smartly:

1. Determine If You Can Legally Rent Out Your Room

Before listing your space, check:

• Your lease agreement (if you’re renting yourself).
• Local zoning and short-term rental laws.
• Homeowners’ association (HOA) rules, if applicable.

2. List Your Room on the Right Platforms

To find the best tenants, use:

• iROOMit (ideal for flatmate matching and long-term rentals).
• Airbnb (for short-term, flexible rental income).
• Zillow Rentals or Craigslist (for traditional rentals).

3. Set Competitive Pricing

Research rental prices in your area and set a rate that attracts tenants while covering your expenses. Consider:

• Offering discounts for long-term stays.
• Including utilities in the rent for simplicity.
• Charging extra for amenities like parking, laundry, or furnished rooms.

4. Prepare Your Space for Renters

A well-maintained and inviting room will attract better tenants. To prepare:

• Clean and declutter the space.
• Provide basic furnishings (bed, desk, storage space).
• Upgrade security with smart locks or cameras.
• Set up high-speed Wi-Fi, as many renters work remotely.

5. Screen Tenants Carefully

To ensure a safe and positive rental experience:

• Conduct background and credit checks.
• Verify employment and income.
• Meet potential tenants in person or via video call.
• Ask for references from previous landlords or flatmates.

6. Use a Lease Agreement

Even for short-term rentals, having a contract is essential. Include:

• Rental duration and move-in/move-out policies.
• Payment terms and late fees.
• House rules and guest policies.
• Security deposit and damages policy.

Additional Money-Saving Hacks for Shared Living

Even after securing affordable housing, there are more ways to save:

• Carpool or Use Public Transport: If you and your flatmates have similar schedules, carpooling can save gas and parking costs.
• Negotiate Bills Together: Ask providers for discounts or split a family plan for phone and internet.
• DIY Maintenance & Repairs: Handle small home fixes yourself instead of hiring a handyman.
• Use Cashback & Budgeting Apps: Apps like Mint, YNAB, and Rakuten can help you save and manage expenses effectively.

Conclusion

For Gen Z, 2025 is all about financial freedom and smart money moves. Whether you become a flatmate or rent out your spare room, shared living can help you significantly cut costs and even generate extra income. By choosing the right living situation, finding reliable housemates, and leveraging platforms like iROOMit, you can achieve financial stability while maintaining a comfortable and social lifestyle.

Shared housing isn't just a trend—it’s a smart financial strategy that can set you up for long-term success. Start your journey today and take control of your financial future!