Accounts/Maths Problem - How will you solve this? (1 Viewer)

pr2-eugin · Nov 20, 2014

The scenario is, four students take a flat to rent. Let us say the only payment they have to make is towards the bills. Say the bill for one month is £ 370.00. Under normal circumstances, it has to be divided by 4 so each would pay £ 92.5 towards the bill. Simple !

Now to add complexity. Two students leave a bit awkwardly. Instead of staying for 30 days they only stay for 18 days. However the other two stay back. So how will you be dividing the price; keeping in mind the bills will be directly proportional to the number of people using it. So the first 18 days it will be a higher usage the next 12 will be a bit less. Unfortunately the usage per day is not available and only one final amount is given.

This is not a drill, actually a problem I am having right now. Lol. The only way I can do is divide the amount by 30, then divide each day by 4 for the 18 days and by 2 for the 12 days. However I find this a bit unfair on the other two who stayed back. The bill amount is just arbitrary, and they are students so trying to be fair on everyone really.

Any thoughts on tackling this issue?

Frothingslosh · Nov 20, 2014

The way you described it, the students each wanto to pay only the portion of the bills for which they were there. If that is, indeed, the case, the only fair way to do it is the one you described, unless the students themselves request a different way.

Minty · Nov 20, 2014

Make them pay full quota till the end of the month for making life more difficult for the two that remain....

pr2-eugin · Nov 20, 2014

Frothingslosh said:
unless the students themselves request a different way.

Well the remaining two are kicking off that it is unfair on them. I hear them, because it is not right. The other two might have used most of it and the other two might have used very little to nothing. Could also be the other way round. Just to be right on these two angles I would like an alternate solution.

Minty said:
Make them pay full quota till the end of the month for making life more difficult for the two that remain....

Well I tend to agree to what you say. I really wish I could though :banghead:

Frothingslosh · Nov 20, 2014

Personally I'm torn, and what I'd say the final (if there is such a thing) 'right' thing to do very much depends on the circumstances. How much notice did the two leaving give the two staying? Are they being forced to leave, or doing so voluntarily?

The problem here is that both sides can make very valid arguments.

To me, it makes quite a difference if the first two are leaving or being forced out, and whether the two staying knew about this for the past month or found out Monday.

pr2-eugin · Nov 20, 2014

Well that adds moral complexity to the problem. The two people (couple) were forced to leave because the lad's mum passed away and they had to go back to their country for funeral and then they decided not to come back. It happened in a day. They did not plan to leave early, or there was any other agenda. It was purely circumstances that worked against the four students.

Frothingslosh · Nov 20, 2014

The thing I see in that is that, once they were out, they decided not to come back.

With that being the case, if I had to make a decision I'd probably have to side with the people staying in this case. It was dropped on them out of nowhere, it was not their fault in any way, and they problably haven't budgeted for the extra cost.

That said, they say diplomacy is the art of making everyone equally unhappy. Maybe you can convince the four of them to split the differrence?

ConnorGiles · Nov 20, 2014

The full quota would be the best way to do it.

But due to the circumstances you would have to work out how much you pay per day per person (This accounts for 30 days) : £3.09 per day

4 students attended for 18 days which would amount to : £222.48 - split equally between all 4 : £55.62 each

the 2 that stayed the extra 2 would then have to divide the remaining amount between themselves which would leave : £147.52

Simply Divide by 2 : £73.76

The remaining 2 people would have to add £55.62 + £73.76 each which would leave it at : £129.38 each ( for the remaining 2)

Please take into account that this is rough estimate due to per day payments (at 30 days a month)

Do not take my math by law, its been rusty for a while

£222.48 + £147.52 = £370.00

AnthonyGerrard · Nov 20, 2014

Its all about what was agreed. That's whats fair.

What was the agreement about leaving.
-Surely they had a yearly or monthly agreement?

Did all 4 know each other. signed a joint agreement?

What was your exact agreement on paying bills? Sound like the two left thought they would pay a 1/4 share no matter who else was in the house, rather than dividing by those left.

pr2-eugin · Nov 20, 2014

ConnorGiles said:
Do not take my math by law, its been rusty for a while

Ha Ha ! I did have this, but as mentioned earlier I thought it was not fair for them to pay a bit less because it is pro rota-ed. I am exploring other options !

AnthonyGerrard said:
What was the agreement about leaving.
Surely they had a yearly or monthly agreement?

It was a monthly rolling, with a month notice for intention to leave. Given the circumstances I could not ask them to stay or fulfill the agreement. Felt it was a bit inhumane.

Minty · Nov 20, 2014

TBH they will have a binding agreement for the rent with the landlord, you should impose the same terms. I bet they can't not pay the rent until at least the end of the month or quarter...

Even in unfortunate circumstances thems the rules...

ConnorGiles · Nov 20, 2014

pr2-eugin said:
Ha Ha ! I did have this, but as mentioned earlier I thought it was not fair for them to pay a bit less because it is pro rota-ed. I am exploring other options !

It was a monthly rolling, with a month notice for intention to leave. Given the circumstances I could not ask them to stay or fulfill the agreement. Felt it was a bit inhumane.

Sorry to say this Eugin , But if you care about being Humane - Looks like its an 185.00 bill each for you :/

AnthonyGerrard · Nov 20, 2014

pr2-eugin said:
Ha Ha ! I did have this, but as mentioned earlier I thought it was not fair for them to pay a bit less because it is pro rota-ed. I am exploring other options !

It was a monthly rolling, with a month notice for intention to leave. Given the circumstances I could not ask them to stay or fulfill the agreement. Felt it was a bit inhumane.

I think you should pick up the shortfall then - the agreement was there were 4 in the house till the notice was served.

Because you aren't persueing the notice - doesn't mean you can pass on that charge to the other two.

What was the agreement for each person on paying bills if there was 1 or 4 in the house.

namliam · Nov 20, 2014

How about sharing the pain?

Going halfsies on the difference, i.e. not 18 but 24 days for the leaving people

pr2-eugin · Nov 20, 2014

Minty said:
Even in unfortunate circumstances thems the rules...

Totally agree ! That is why I am not giving them the easy way out.

ConnorGiles said:
Sorry to say this Eugin , But if you care about being Humane - Looks like its an 185.00 bill each for you :/

Lol. Better four way than two. I just was a bit worried.

AnthonyGerrard said:
I think you should pick up the shortfall then - the agreement was there were 4 in the house till the notice was served.

It was for 4 people. So they are going to pay regardless !

namliam said:
How about sharing the pain?

Going halfsies on the difference, i.e. not 18 but 24 days for the leaving people

That sounds like a very good idea. Ha ! Cheers namliam !

ConnorGiles · Nov 20, 2014

pr2-eugin said:
Totally agree ! That is why I am not giving them the easy way out.
Lol. Better four way than two. I just was a bit worried.
It was for 4 people. So they are going to pay regardless !

That sounds like a very good idea. Ha ! Cheers namliam !

Indeed it is a hard situation for them to go through and my condolences are with them, but people deal with these hard times every day. It certainly isn't an excuse to throw away responsibilities - it just isn't fair on the people who were left to pay.

Frothingslosh · Nov 20, 2014

pr2-eugin said:
That sounds like a very good idea. Ha ! Cheers namliam !

Hey, I suggested that way back in post #7!

ConnorGiles · Nov 20, 2014

Indeed you did pal.

Bladerunner · Nov 20, 2014

I have read all of the replies and agree with the thought that the two students staying are going to get the raw end of the stick, so-to-speak. Having said that, there was no mention of a contract mandating each student to pay a full months portion of the rent if any portion of that month was used by an individual student. Therefore the two students staying 18 days would have to pay 12.17 pounds (don't have the pound sign handy) for each day spent at the apartment or 219.08 pounds. The other two students would then need to split the remainder (150.92 pounds) or 75.46 pounds more for the last twelve days. Life sometimes is just not fair. I bet the next time the remaining two students will have a contract.

ConnorGiles · Nov 20, 2014

Bladerunner said:
I have read all of the replies and agree with the thought that the two students staying are going to get the raw end of the stick, so-to-speak. Having said that, there was no mention of a contract mandating each student to pay a full months portion of the rent if any portion of that month was used by an individual student. Therefore the two students staying 18 days would have to pay 12.17 pounds (don't have the pound sign handy) for each day spent at the apartment or 219.08 pounds. The other two students would then need to split the remainder (150.92 pounds) or 75.46 pounds more for the last twelve days. Life sometimes is just not fair. I bet the next time the remaining two students will have a contract.

Already done the calculations pal.

its around 3.09 each day per person.

222.48 is split between the 4 of them and the remaining money is split between the 2 left.

Accounts/Maths Problem - How will you solve this? (1 Viewer)

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