Once a house has been purchased, the co-owners will have :

  • ongoing maintenance work
  • shared costs for home operation and upkeep
  • other house-related responsibilities

These responsibilities and costs need to be clearly laid out, mutually agreed to and shared fairly among the co-owners.

Co-owners may also consider how contributions of time and work by each co-owner will be valued, and if this will impact how the ongoing costs are shared among the co-owners.

Ongoing house costs

  • Mortgage payments : a best practice is for co-owners to keep a reserve fund with the next three months’ worth of mortgage payments.
  • Municipal and education property taxes : the municipal billing cycle for property taxes may not be evenly spread through the year.
  • Utilities : these may include electricity, water, gas/oil, internet service, cable and/or lease payments for hot water tank.
  • House operations and minor repairs : these may include cleaning supplies, light bulbs, hardware supplies and equipment for indoor and outdoor maintenance.
  • Major repairs and renovations : large expenditures such as roof and/or heating and ventilation system replacement may be needed during the course of co-owning the house.
  • Home insurance premiums : insurance provides protection for homeowners against damage or loss and personal liability. It is often required by financial institutions in order to obtain a mortgage.

Contribute to a bank account

For managing common finances, a best practice is for co-owners to create a separate bank account.

Each co-owner contributes regularly based on expected ongoing costs, including a “cushion” or reserve amount to allow for unexpected costs.