SplitRent (Concept)

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Overview

Currently, I am living in a one-bedroom apartment close to my workplace.

Now that my friends are graduating and accepting job offers, we are looking to move in together.

QUESTION: How do we find a living space that is in a central location, and how should we split rent in a "fair" way?

ANSWER: SplitRent

The creator of this webpage is developing an algorithm that uses locations and preferences to identify and sort reasonable living spaces.

SplitRent "Fair" Principles

The 50-50 split should only be implemented in "perfectly fair" conditions.

The person who lives closer to their specified location(s) should pay more; they spend less time on the road and less money on gas.

Rent should be cheaper per person when the total number of renters increases.

Rent Calculations

Example Scenario 1: Two Roommates

Reagan and Bradford find a potential living space between their two workplaces.

This living space is 20 minutes from Reagan's workplace and 30 minutes from Bradford's workplace.

QUESTION: How should they reasonably split rent?

ANSWER: Let's derive SplitRent equations.

Round-trip, Reagan drives 40 minutes a day, and Bradford drives 60 minutes a day.

Between the two of them, they spend 100 minutes on the road.

Reagan accounts for 40% of the drive time whereas Bradford accounts for 60%.

To make things more "fair", their portions of the rent should be inversely related to their drive times.

--- Reagan should pay 60%, and Bradford should pay 40% of the rent. ---

Example Scenario 2: Three Roommates

Lyn also wants to move in with Reagan and Bradford.

The same living space is 50 minutes away from Lyn's workplace, so Lyn would drive 100 minutes a day.

Between the three of them, they spend 200 minutes on the road.

Now that there's three people, splitting rent isn't as easy as swapping drive time percentages.

Here's a new idea:

  1. Subtract each persons drive time percentage from 100%.
  2. Add these new "inverse percentages" together to determine a "dividing factor."
  3. Divide everyone's "inverse percentages" by the "dividing factor."

Inverse Percentages

Reagan: 100% - 20% = 80%

Bradford: 100% - 30% = 70%

Lyn: 100% - 50% = 50%

Dividing Factor: 80% + 70% + 50% = 200% = 2

SplitRent Percentages

Reagan: 80% / 2 = 40%

Bradford: 70% / 2 = 35%

Lyn: 50% / 2 = 25%

--- Reagan should pay 40%, Bradford should pay 35%, and Lyn should pay 25% of the rent. ---

Future Improvements

  1. Derive equations for drive frequency adjustments.
  2. Derive equations for hourly wage adjustments.
  3. Derive equations for square-footage adjustments.
  4. Add an interactive map.
  5. Connect to a housing database.
  6. Develop backend operations for user interactivity.