The fair market rental value in your area for a similar rented space versus the rent that you charge is what determines whether you have a profit motive when you rent your rooms. If you are charging a much lesser rate than others in your area with a similar space, then you are not renting for profit.
This means that any and all of your expenses are limited to the amount of rent that you collect. The expenses compared to the rent you charge are not a factor in determining whether you are renting for profit.
When it comes to dividing expenses, the conventional method is to use square feet of the space rented versus the square feet of the whole house, but that is not a rule that must be followed. You could use the number of occupants to divide the expenses if you choose. You just need to be consistent with the method that you use.
@Ember6551
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