A family member of mine have been living in a 1 bedroom home of mines for 3 years rent free. Well, starting 2007 I'm going to start charging her rent. What's a decent price? I was thinking $100/month. The house isn't that big either. But it has 1 bedroom, a tiny kitchen, full bath, & a small living area.
In addition she's not making that much money. BUT she's the only one living there. I also make her pay the taxes.
2006-11-21 04:51:31 · 18 answers · asked by lookinforexcitement 3 in Business & Finance ➔ Renting & Real Estate
$100.00 - 200.00 sounds reasonable.
2006-11-21 04:53:51 · answer #1 · answered by Justsyd 7 · 0⤊ 0⤋
A lot of it depends on the area it's in. My sister just moved out here to california and was looking at 1 bedroom apartmants and they went from $675-$1000. The smaller one that sounds exactly the same size as the one you have was about $775 a month i think, but most of the utilities were paid. If you're "family member" is paying the utilities I would say $200-$400. If you're paying them I would say $400-$700. Depending on the price of the utilities. If they are only $100 then $400-$500 is fine. It also depends on if you need/want the money or not. If you don't need the money then you obviously don't have to charge so much for her to stay there. I think what you should do, if you're not already, is have her pay all the bills (water, electricity, cable, gas, etc.) and then charge maybe $100-$300 a month. Another thing you could do is get a local newspaper and see what 1 bedroom apartments are going for in your area. You can call and see if the owner pays the utilities or not. For example, if there is a listing in a newspaper for a 1 bedroom house for $600 a month with water and electricity paid, then go from that. Pay her water and electricity, and then charge her *around* $600. It definately depends on where it's located though. Here my sister got a 1 bedroom for $825 a month (deluxe, and the non-deluxe was $775) and in arkansas where I used to stay my brother's are staying in a 3 bedroom 2 bath for ($500-$600) and they pay the expenses. It does help that my dad owns the house. I'm guessing that a 1 bedroom apartment would be as little as $100-$200 there (with no utilities paid). If I were you though I would look in a local newspaper and see what they are going for in your area, and charge your "family member" accordingly (depending on how leniant you want to be). If you say $200 and she can't come up with it, then you can take it down to $150 and see how that goes.
Hope this was helpful,
Matt
2006-11-21 13:09:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋
First remember family and business don't mix. Then check the area and see what others are charging(get the local free paper and call places near you and ask them how much and how big the units are, with that you will be able to get an average price per sq. ft. then measure your place and multiply accordingly.) Just remember if she hasn't paid in three years and still hasn't made enough money to pay more than 100 per month, when you start charging rent there is going to be nothing but trouble( late payments then no payments and you are going to have one heck of a time getting her out), so even if you are going to charge her 1.00, GET A LEASE AND HAVE HER SIGN IT BEFORE YOU GO ANY FARTHER or you will regret it when she doesn't pay.
2006-11-22 00:07:17 · answer #3 · answered by Shabazz F 2 · 0⤊ 0⤋
Whatever you decide follow all the answers - Please remember this: Put everything in writing, signed,witnessed! The easiest way, (you don't need the rent) for you to calculate is to take ALL the Expenses of the house, Taxes,Renovations,etc - and divide that by 12. Once you start charging your family member, you will have to Add this to your income, when filing. Is it worth it? You can write the expenses of the house off the way things are now. Don't forget that you will also have to Register the Property under the Assessment Roll as a "rental unit", then you fall under the Jurisdiction of the Municipality and all the laws pertaining to. Building code,tenant rights,and probably an increase in your property taxes. All kinds of Reactions will occur with this ONE ACTION. Think things over, speak to your accountant/lawyer and/or check this out for yourself before you proceed. Good Luck!
2006-11-21 13:09:49 · answer #4 · answered by peaches 5 · 0⤊ 0⤋
One hundred dollars is very cheap.
Regardless of the size it is still cheap.
It would depend a lot on whether or nor she is paying her own utilities. If she is then I would charge at least 2-3 hundred dollars. If she is not paying utilities then I would charge more.
She has been there for three years rent free. How many people can say they have had that luxury?
Has she bettered herself, has she saved money since she has been rent free for three years?
Consider everything before you give too much of yourself to someone that may not even appreciate it enough to look beyond living rent free.
2006-11-21 12:53:03 · answer #5 · answered by Anonymous · 0⤊ 0⤋
OK, family member or not...is not the point. Business is business and if she/he has been living there rent free for 3 years then to be honest you must have been sleeping. I mean, fair do's, if someone is in a bad state then one can help but limits are limits.
If I was you I would charge her $500 a month, and if she does not like it then she should find a new apartment! Then you can advertise your bungalow and ask what you want. I mean you have to think first on how much your property costs you in mortgage rates, rates, etc..and then you have to calculate how much profit margin you want on it!
It sounds hard, but sometimes you have to be hard to be kind. I reckon it is about time she/he started learning about real life. When he/she gets used to it then he/she can start enjoying life properly.
Good luck anyway..cheers!
2006-11-21 13:02:01 · answer #6 · answered by Gary H 3 · 1⤊ 0⤋
I always look at what rooms for rent are going for in my area. Then if it is family member and a friend I discount it. I also don't make them pay for anything else though.
2006-11-21 12:54:16 · answer #7 · answered by Glee 2 · 0⤊ 0⤋
Probably a good place to start. Be sure you tell her right away, at least a month in advance, 2 is better.
Later as she does better you can up it on mutual agreement.
2006-11-21 12:54:43 · answer #8 · answered by Everyman 3 · 0⤊ 0⤋
What is the sqft of the home? Where is the home located?? All that information goes with price of rent.
Let me know if I can help .... email me at Salcedore@yahoo.com
I work in California.
2006-11-21 13:02:08 · answer #9 · answered by jmilil 3 · 0⤊ 1⤋
$100.00 is very generous for a whole house no matter what the size is, but it is your house. To answer the question you can charge her as much as you like...........
I just hope she is a really good friend and she will not screw you in the end!
2006-11-21 13:00:41 · answer #10 · answered by littlegoober75 4 · 0⤊ 0⤋
depends the area but like in my are its like 700 so if dats ur family i would charge 500 hey its onli fare u cant have people livin off u
2006-11-21 12:53:40 · answer #11 · answered by KARiNA 2 · 0⤊ 0⤋