Space Sharing Consideration
legal agreement, ownership, division of space, common area/property, noise level, splitting bill, pet policy, sub rental, insurance, maintenance fee, exit strategysafety_divider Space Share cottage Real Estates
In space sharing, people buy a space (property) to be used at the same time but different private spaces, and this can be cheaper because the costs of maintenance, utilities, and shared amenities (such as kitchen) are divided among the co-owners.
A few common examples of space sharing include sharing a home, co-working in a shared workspace, sharing a restaurant space where tenants sell different food in the same space, and jointly utilizing storage spaces. Here are some things to consider:Determine the Group Dynamics:
Before buying a group space share, it's important to determine the group dynamics. Consider the number of individuals involved, their personalities and preferences, and their financial resources. Ensure that everyone involved is committed to the arrangement and has a clear understanding of the terms and conditions.Ownership:
Establishing clear ownership guidelines can help prevent misunderstandings, conflicts, and potential legal issues.
More on Type of OwnershipLegal considerations:
Consider consulting with a lawyer or formalizing the agreement in writing before entering into a time share agreement with friends. This will help ensure that all parties are protected legally and that the agreement is legally binding.
More on Boilerplate AgreementDivision of space:
Decide how the space will be divided and how each person's private areas will be designated.Common area:
Establish scheduling and rules for common areas to ensure everyone gets a fair share of space and time. For example, if the kitchen is shared, decide how long each person can use it and when it will be cleaned.Common chores:
Determine how common chores, such as cleaning, lawn maintenance, and snow removal, will be handled. Establish a schedule and responsibilities for each owner or tenant.Common properties:
If there is a shared property (such as: printer, fax) in the space, it's important to establish rules for its usage. This can include guidelines for who is responsible for purchasing ink and paper, how to handle disputes over printer usage, and how to troubleshoot any issues that arise.Ongoing Cost:
Considerations the ongoing costs of HOA (Home Owners Association) fees, mortgage, property tax, maintenance, license fees, insurance, and an emergency fund. These costs can typically be divided among the co-owners based on their percentage of ownership. It may be beneficial to create a dedicated account to hold money for these ongoing expenses.Splitting utility bill:
When sharing a space, it's important to establish how bills will be split. This can include setting a budget for utility bills and dividing them evenly or based on initial contribution, installing separate utility meters for each owner, or rotating the responsibility for paying bills between roommates.Extra insurance:
In some cases, it may be necessary to purchase extra insurance to cover the shared space. This can include liability insurance, renter's insurance, or other types of coverage to protect against damage or theft.Allow sub rental:
If one or more roommates need to leave the space for an extended period of time, it may be necessary to allow sub-rental. This can include establishing rules for how long sub-rental is allowed, how to find suitable subletters, and how to handle any disputes that arise during sub-rental.Noise level:
Different people have different tolerances for noise, so it's important to establish guidelines for noise level in shared spaces. This can include setting quiet hours, using noise-cancelling headphones, or establishing rules for when it's appropriate to use loud music or other noise-making devices.Pet policy:
If pets are allowed in the space, it's important to establish guidelines for their care and behavior. This can include rules for cleaning up after pets, setting boundaries for where pets are allowed to go, and how to handle any conflicts that arise between pets.Communication:
Communication is key in any shared property arrangement. Establish a communication plan, including regular meetings, to discuss any issues or concerns that arise.Exit strategy:
It's important to have an exit strategy in place in case any parties involved in the space sharing arrangement want to leave or end the agreement for any reason.
Tips for creating Space Share Group Sharing:
Trigger
For example, you want to buy a property containing 5 rooms to be space shared.
If you want to make sure all 5 rooms are reserved, use Bundle Trigger.
If you want to make sure that at least the house price is covered, use Money Trigger - this allows some rooms (probably unpopular or smaller ones) to be unsold.Participant
Choose who can join your group sharing: Friend limits participation to your close friends for a more familiar experience, while Friends of Friends expands to include your friends' connections for helping reach the minimum requirement faster.Approval
Consider using Approve Manually to vet participants and ensure that they are a better fit for your criteria, such as being trustworthy or having similar cleanliness or pet policies as you.Items
Consider grouping rooms with similar size and amenities as one item, along with specifying the number of such rooms available. This prevents participants from reserving only a similar rooms while leaving others unreserved, which could potentially hinder the success of the deal.
Create each item, with the number of items in that Deal that make up each Deal that you want to buy. In the case of the example above, this will be each room (based on the room size), the number available for each item is 1 (unless there are multiple rooms with similar size and amenities), and the price is the price for the said room.Minimum and Maximum
For Bundle Trigger, in most common scenarios, you only space share 1 property at a time, so the minimum and the maximum is 1.
For Money Trigger, in most common scenarios, set the minimum to be the cost of the house, and the maximum to the total price of the rooms available.