Real life MMD: Should we charge a new housemate more to reduce our rent? 31 May 2012 at 3:51PM in MoneySaving polls 57 replies 10.5K views

Former_MSE_Debs

Money Moral Dilemma: Should we charge a new housemate more to reduce our rent?

[FONT=&quot]I share with three other people. There is no lease or paperwork, but the landlord lives downstairs and collects our rent every month. My housemates have suggested increasing the rent for the next new person who moves in, and splitting the difference to reduce our rent, e.g., charge the new tenant £100 more per month then reduce each of our rents by £25. I think it is immoral, but if the new tenant agrees to the higher rent from the outset, is there any harm?[/FONT]

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js9337

Personally I wouldn't do this unless the room was larger, had a better view or had some form of legitimate reason for the increased rent compared to the other rooms in the house. It will only lead to resentment when one housemate lets it slip. Im all for fairness.

Although you would in any case agree the price in advance would you also state in that the others in the house pay less?

arnoldrimmer

I'd be more concerned with being a tenant with no lease or paperwork on my side. The landlord could throw you out on a whim with no notice, walk in and out whenever he wanted, double or triple your rent overnight, not do the gas safety checks legally required, go bankrupt and disappear and so on, before I thought about making more money from other tenants.
Why on earth would you not want the protection of a lease?

KxMx

Remember this would be a housemate you're conning, someone that lives with you, now think of the type of revenge they could take out if they discovered this- on what is your home and the place/atmosphere you live. There would be no getting away from them unless one of you moved ,and you'd never know what you were coming home to/be able to relax for fear of prawns in the curtains or a surprise in the bathroom!

whitewing

I don't agree with it, unless, as stated above, there is a real advantage to the new person that is worth the extra rent. If so, you have to be upfront imo.

The trouble with ripping him off once is that you are not going to draw the line at that, and you may well create an environment of lack of respect.

And if he finds out, after you haven't told him, what if he decides to deduct the difference off the utility bills he owes you?

Sounds like a nightmare waiting to happen.

telsco

Basic economics.
If they want the room and are willing to pay what you ask then I say you have nothing to feel guilty about.

(they could be a potential axe murderer, so choose wisely)

Fujiko

arnoldrimmer wrote: »

I'd be more concerned with being a tenant with no lease or paperwork on my side. The landlord could throw you out on a whim with no notice, walk in and out whenever he wanted, double or triple your rent overnight, not do the gas safety checks legally required, go bankrupt and disappear and so on, before I thought about making more money from other tenants.
Why on earth would you not want the protection of a lease?

This idea is not only immoral but stupid! You are all obviously living in fairly close proximity, sooner or later the new tenant is bound to find out, and think of the atmosphere that will create. Is it worth it for £25 a month? As to not having a lease or even any paperwork I agree this would be my main concern. Having to rent is bad enough so why make it worse by not having any basic security?

Occy

I would say go for it, in fact I would take it a step further.

Bide you time, wait for the other members in the know to leave and replace them with other renters paying extra.

Once you are the only one left gradually increase the differential until such time as you are living free or in fact making a profit on your accommodation.

In fact wait for a few years then sell your profit making accommodation for a one off lump sum, bingo! quids in!

.....Did you see what I did there?

Occy

glad2bmad

i think it would be imoral to do this. the simple maths mean that your rent would be reduced anyway by dividing total rent by four instead of three, no contest.

Itismehonest

Yes, there would be harm. You're all sharing.
If I knew the others were prepared to do this then I wouldn't trust them as far as I could throw them.
How could you be sure that they weren't conning you in some way, too?

saversfriend

Depends...
If you're clear from the start, eg "Hey, your room has the added bonus of more space / an ensuite / a better view / ground floor / nicer view / whatever, therefore it costs £X more than the other rooms" then it's not a problem.

If you just fleese them off, of course they'll find out and not thank you for it.