How much do I ask for?

monkeyintrouble

Im on my DMP now with CCCS and although Im still getting nasty letters and outstanding arrears statements from some of my creditors, all seems fairly calm.
My daughter, who lives in a rented flat with her fiance is also feeling the pinch from the credit crunch. They both work but cant seem to make ends meet with their living expenses. Rent is £600. Council tax is £130. Electric, water rates, phone etc etc.....
We all had a chat and have decided they come and live with me. I live alone in a three bedroomed house so enough space.
They insist on paying their way, but I really dont know how much to ask for. I am expecting higher gas, electric and water bills, plus I will lose my single person discount on my council tax.
Its my daughter, so I hate asking but Im on a tight budget as it is so I couldn't possibly afford any extra on the utility bills.
They are going to be a lot better off without the worry of the rent etc for the flat, which is good, but anybody have any suggestions on a "rent"?
I dont want to profit from the arrangement but need to cover any increase in costs.

sallyx

You have to look at this from a different perspective. If you were taking in a lodger what would the going rate be? I know its your daughter but she is also going to benefit by lowering her outgoings. How much will your council tax increase by per month? Guestimate is that this will cost you an extra £250 + a year This would be your starting point. Are you going to include her meals in this amount. I think you need to write a list and estimate the increase in cost of each item.

skylight

Do you get any other benefits? Housing etc???? As you would lose those too.
Have you asked them how much they are expecting to pay?

I personally think £600 for two (without "special" food, so just normal stuff but don't expect top rate coffee etc, etc if you are planning on feeding them too) is a good rate. You don't want to make it too cheap or they will never get round to leaving (LOL!!) but on that basis they should still be saving a lot compared to current expenses. Afterall, if DD had never moved out, you would have been asking for 25-30% minimum as "keep" anyway.

Perhaps you could also offer them the 2 bedrooms (if possible)?? Then they can have a bedroom and turn the other into their own sitting room - they could have their own stuff and you all have your own space too - and it would justify the £600 a month. I would also suggest looking at things like phone utility and what your package is. If you changed to an all inclusive call package (gives you free landline calls up to 1hour any time of day/week) then that should help keep costs down, but make it clear that there would be no mobiles to be called from the landline.

monkeyintrouble

Hi, thanks for comments.
I dont get any benefits atall, only my wages. My daughter hasn't lived with me for some years now either so it will be a bit of a new experience, especially with her fiance in tow.
My very first concern was my phone bill (going on past experience with my DD's love of chatting on the phone) but I have a great internet/phone package. Unlimited broadband and free phone calls, except mobile, for just £25 a month, so all I have to do is barr mobile calls.
I was trying to work out a figure just for a "rent", which would include rent, council tax, all utilities, well everything except food. Probably best if we keep that seperate and then share the food bill as we'll all be eating together and probably shop together.
As I said before, I dont want to profit but need to cover my costs.
They will have the run of the house but I will have my own room to go to if we end up "tripping over" each other or have different tastes in tv programmes. Sounds like Im giving up my house but I want them to feel at home rather than just feel like lodgers in a B&B. We are all going to have to adapt to a slightly different life style and a compromise on privacy but we all get on great. Its just a fine line in getting the finances right.

10past6

Hi

Try posting in this forum it's for renting, some members only keep to one forum so you may get a better response.

sisbod

MIT When my daughter planned on moving back with bf on tow I went through all the bills: rent water fuel council tax and phone and percentaged it depending on the size of the house to rooms they were using. That way it is equal - eg the bills came to 1000 they would pay £500 as this would be the cost of the amount of space if they had the equivalent accommodation independently.
The bonus factor is that in my daughters case I didn't mind making her SOME meals as if she came to visit and if she ran out of milk she could always borrow without panicking.

Initially it sounds a lot but if you factor in all the costs like that you will find that it will highlight that this is a temporary/business arrangement and they are more likely to push the saving inorder to get their own place:j Also it gives you a level of reduced bills in compensation for the disturbance they WILL cause
By the way if you have a fully paid up mortgage or very low mortgage costs then check out your local authority allowance based on their rent allowance as a starting point accommodation is always more than that (at least it is in our area)

urg123

Hi MIT

There are also Tax issues you need to think about. Currently, you can earn up to £4250 under the government's Rent a Room Scheme. http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804
Not sure it fully applies to you but have a read.

URG x

sisbod

I personally wouldn't be looking at the tax aspect as this is family rather than anyone outside of the family. also this is not income it is house share. But I could be really wrong I suppose it depends on how long they are going to be at your home.

monkeyintrouble

Well I was thinking of asking about £300 a month, plus their contribution to food. That amount should cover increases in council tax and utilities. It will give them a chance to save some money and hopefully one day get a place of their own when their income increases.
On that amount, I wont fall into any tax payment liabilities, and I will have some small compensation for my change in living arrangements and privacy.

Sharon87

I think £300 is a reasonable amount. £600 would be too much. My mum would charge me £200 a month if I moved back home (just me, no partner), so £300 seems fine.

savingholmes

To give you an idea in my area a room in a shared house with utilities and council tax included would be £250 so consider this when decided whether or not to give them one room or two! I think unless you are taking cash in hand you do need to consider the tax implications and therefore bearing in mind the rent a room scheme of the tax office is worthwhile. Also if you do have a mortgage you need to avoid giving them a key to their personal room as otherwise they could gain additional rights.... a lodger is easier to evict than a tenant... I know its family and you hope it won't come to that but there be aware....

We lived with parents once, we just paid towards food and keep and in total paid about £400 a month but that was partly cos they a) didn't need the money as much as it sounds like you may and b) that was their way of helping us be debt free...

HTH