How much rent to charge a sibling.

Ratmouse

back story, we jointly inherited a home last year which has now been transferred to my sole ownership. now my sibling wants to buy (or at least says so) but doesn't appear to be in any rush to find somewhere.  fyi its a room and garage (which i want for my own car!) and is in a not so cheap part of the country 

now i do want to be fair, but I'm also aware they.
have lots of money gaining interest  
earn decent money at work 


 needs to be enough to be almost more than gently pushing them out else they will be too comfortable an i want to make the house my own with quite major works asap

id like some outside input thanks guys 

FlorayG

Charge the market rent, whatever that is for similar properties in the area. Your sibling will have exactly the same rights as any other tenant and YOU will have exactly the same responsibilities as any other landlord.
It's 'one room and a garage'? Do you mean a studio flat? Also you're entitled to rent the accommodation without the garage if you want. 
Remember you have to pay tax on the rental income as well.
The best way to encourage them 'gently' to move on is to charge them market rate

noitsnotme

It sounds more like a lodger than a tenant as in the OP lives there and the sibling wants to rent a room and the garage?  Perhaps the OP can clarify the situation.

ButterCheese

£600-800

It's your house so you make the rules.  Someone who can take up all of the garage and live rent free, is clearly taking the P.  I would not dream of taking such liberties with a sibling, or anyone else for that matter.  I even used to ask my parents or my sibling (when living with them) if it was ok to store a TV in the loft

saajan_12

There's no generic number that'll make sense across the country and for any size / type of property. 

What's the going rate for similar rooms to rent or properties in the area? 
Or what's ~4% of what was their share of the property value, divided by 12 -> as a proxy for the interest they're likely earning. 

If the issue is doing renovations, can you just start them around her if necessary? Living in a semi building site might be an incentive in intself. 

FlorayG

noitsnotme said:

It sounds more like a lodger than a tenant as in the OP lives there and the sibling wants to rent a room and the garage?  Perhaps the OP can clarify the situation.

You are right it's completely unclear. OP do you mean you both live in the house but you own it? Or your sibling lives in another house that you own?

Ratmouse

sorry yes we both live there , so i thinking of them as a lodger is probably reasonable 
for clarity it is a room and a garage so its hard to know the going rate  as its a little out of the ordinary. 

 but it looks like the market rate for the area anywhere  between 600-1000 pcm, 

sounds odd but id rather deal with the renovations once they have gone,  

p00hsticks

FlorayG said:

noitsnotme said:

It sounds more like a lodger than a tenant as in the OP lives there and the sibling wants to rent a room and the garage?  Perhaps the OP can clarify the situation.

You are right it's completely unclear. OP do you mean you both live in the house but you own it? Or your sibling lives in another house that you own?

And when you say that

 Ratmouse said:

 we jointly inherited a home last year which has now been transferred to my sole ownership.

do you mean that you paid the sibling the going rate to buy out their half of the property ? 

Ratmouse

do you mean that you paid the sibling the going rate to buy out their half of the property ? 

yes that's correct 

Savvy_Sue

FlorayG said:

Remember you have to pay tax on the rental income as well.

Although there's still the Rent a Room scheme, which might be worth considering.

RAS

Agreed, set the rent just below the Rent a Room allowance for ease.

More importantly you need to find the wherewithal to tell the sibling that they need to move out within a certain time frame. And that means they need to rent f they haven't found somewhere by the time the works start. So give them 9 months say?

Have you been getting in trades to quote for jobs, and openly discussing timetables in front of them?