I own a home currently 50/50 with my boyfriend. I want to move out and he will live there with a friend. The mortgage is far more than we could rent it for (5k a month rent probably for 2500).. how do I figure out what is fair for me to get paid?
How much should the friend pay? Thank you so much!!
2007-03-23 09:22:37 · 4 answers · asked by beachgirl 1 in Business & Finance ➔ Renting & Real Estate
Determine how much you could rent it for $2500 and then split the difference because he is getting the benefit of the rent. So your share would be $1250 per month. The friend should pay what the market would bear say $1000 which would be split 75% to him and 25% to you So he would pay $4000 and you $1000. If he got other renters the same formula would apply. See an attorney.
2007-03-23 09:31:18 · answer #1 · answered by Village Player 7 · 0⤊ 1⤋
Assuming the friend occupies the same amount of space (i.e., not Master Bedroom for one, tiny closet for the other), just pretend like both your boyfriend and the friend pay rent to live there. Now, pretend they both pay 1/2 the amount you think you could rent it for. By the numbers you've given, they both could pay $1250. That $2500 goes towards the mortgage directly. Now, you and your boyfriend co-own the house, so you have to make up the difference in the morgage, over and above what the renters pay. You split that overage. Thus, you each pay $1250 towards the overage. The end result is that your boyfriend pays $2500 of the mort., the friends pays $1250, and you pay $1250.
You have to adjust these numbers if the size of space allocated is not equal. Similarly, you need to pay some "rent" if you are storing stuff there in significant quantities (i.e., if the garage is full of your stuff, you need to pay for that space). You also need to be absolutely correct and fair about the amount the space would rent for, by looking at prices in your area for similar spaces.
2007-03-23 09:30:51 · answer #2 · answered by Qwyrx 6 · 1⤊ 0⤋
have him pay
1/2(the mortgage) + 1/2(the cost of the rent you are currently paying) = a reasonable solution.
For example. Let's say the house payment is $2000, he is living in the home and you are paying rent elsewhere off $1000. It would be unfair for him to pay only half the mortgage because he has more than half the benefits (earing equity and living there). In the example above, he shouls pay $2500 and you pay the remaining $500.
2007-03-23 09:31:44 · answer #3 · answered by lola_falula 2 · 0⤊ 0⤋
That is one ****** up situation. I have no idea. Sorry.
2007-03-23 09:26:24 · answer #4 · answered by HoofHearted 3 · 0⤊ 0⤋