I just bought a house and I am going to have 2 other guys living with me. Before, we were looking at simliar houses to rent, and they were about $1300 plus utilities. My mortgage payment on this house is $1,200. How much should I charge each roomate? Each guy will have his own room. And how much should i charge each of them if we decide to get 4 total guys (all in separate rooms). Let me know what you think.
2007-09-13 18:05:47 · 8 answers · asked by Tryingtofigure it out 1 in Business & Finance ➔ Renting & Real Estate
$400 each, even if you get a 4th guy, and a 1/3rd of the utilities on a monthly basis.
if they complain remind them you have taxes and other issues to deal with, insurance, etc. and that if someone breaks a item in the house maliciously they will have bought it. I would suggest getting some lease agreement paperwork even if they are buddys.
2007-09-13 18:16:29 · answer #1 · answered by Ravin 5 · 0⤊ 0⤋
What would your home rent for? Let's say $1300 a month plus utilities. You should recieve the same amount as what they each would pay if they were renting a home and splitting the cost.
Just because you own the home, you are not obligated to only get an equally divided rent payment of what your mortgage payment is.
Why? Because it is YOU that has to be responsible for any repairs, worn out appliances and emergency fixups that will come along. It is you that takes liability for their cars, animals and antics that could end up with someone falling and getting hurt and suing your insurance company which would make your rates go up, way up.
You are the one who had to sacrifice to save for a downpayment, ensure your credit was good for years etc...
So, the payoff of being responsible is a house. So now, rent responsibly and with reason and logic.
Put the extra amount away each month for repairs and after you have six months worth put away. Make some improvements to the conditon of the home or update some lights etc. so they can see that you are a landlord that wants to keep them happy.
2007-09-14 04:01:19 · answer #2 · answered by ? 5 · 0⤊ 0⤋
This all depends upon you and what you want as far as the home itself in the future. An equal split is fine and splitting the utilities also. You will be responsible for taxes, insurance, and other bills of maintenance, (Lawn Care, painting, etc...). What ever you decide I highly suggest you have a lawyer draw up a renters agreement for you to have the people sign. This protects you, and don't believe that the friendship thing is all you need. It's your home and a big investment, treat it like one.
2007-09-13 18:36:43 · answer #3 · answered by aswkingfish 5 · 0⤊ 0⤋
I would add all of the housing expenses, mortgage, taxes, insurance, and some for upkeep and repairs, then split it evenly. If you get another guy, the expense gets reduced for everyone. Make sure you get everything in a signed agreement even if you are best friends.
2007-09-13 19:23:30 · answer #4 · answered by sbyldy 5 · 0⤊ 0⤋
why not look at other rentals in the area for similar situations (bedroom with shared kitchen, bathroom, etc) and charge that. this is a business arrangement right? your mortgage payment is irrelevant (and if you feel bad don't forget you have other expense -- utilities, insurance, property taxes, maintenance, etc).
2007-09-13 18:15:18 · answer #5 · answered by iocook 2 · 0⤊ 0⤋
actually its a good Idea to look at the prices of other rentals in the area. While you want to remain competitive , you also want to be affordable to keep ( and even attract) other tenants.
2007-09-13 18:17:52 · answer #6 · answered by Anonymous · 0⤊ 0⤋
split everything evenly
2007-09-13 18:13:28 · answer #7 · answered by Lov'n IT! 7 · 0⤊ 0⤋
hmmm i think it really matters where you live
2007-09-13 19:22:16 · answer #8 · answered by Anonymous · 0⤊ 0⤋