how much to charge a mate who wants to be a lodger???

tomaz64

should i charge him the going rate or a discount???dont really know!!as he aint working but gets a pension and incapacity benefit??he just sold his share in a house and is waiting to purchase a flat, cash(waiting for the prices to drop) ,so aint skint??....looking for some advice off you friendly people!!
many thanks!!

PasturesNew

Charge too much, he thinks you're taking the p.
Charge too little, you might find he does.

How much will depend on what you're providing him with. Type of accommodation. What's included/what's not. Location. Value of property/how much it costs you. Bills.

How much is the going rate in your area for a shared place? £250/month bills included? £500?

tomaz64

i was maybe thinking £50 a week then going 1/2 on gas and electricity bill a month!!not to keen on having someone here 24/7 as i work nights and tend to spend time with my children after school(they come for their tea etc)dont really want to disturb that!!

Caffca

Years ago, I moved from a rented flat to share with a friend who had her own house. We decided to work out cost of living at the flat (rent, utilities, council tax, insurance etc) then we halved it and that's what I paid her all inclusive (except food and stuff) - worked for us.

spirit

Hi Tomaz64,

I would say never let to friends and family for the same reason they say never to sell anything to them! It's difficult to set and keep the house rules which isn't usually a problem with a lodger you don't know.

If you do go ahead, it has to be the going rate locally I would advise. Rates vary from area to area and whether you let a double or single sized room and furrnished or unfurnished. If you have a look at ukeasyroomate you can find out what rents are for your area.

Good luck!

maninthestreet

If you charge too little compared to the going rate, your mate will be very reluctant to leave, as it's going to cost him more to live elsewhere, despite what he states about wanting to buy another property when prices are right.

JanCee

Look in the local papers for the ads for shared accommodation and that should give you a good idea of what to charge. You may want to give your friend a small discount but don't leave yourself out of pocket, you will end up resenting his presence and lose him as a friend.

Andy_Hamilton

Charge the going rate.
To find this go on www.spareroom.co.uk and search for people looking for rooms. On the right there is a button what says "what's the going rate".

Are you doing it for a fixed time as a temperary stop between homes?
If this person was not lodging with you, would you be looking for someone?

You could write a contract for 3 months discounted then going up for 3 months to market price then if they are still there after a year it goes up by 20% every 3 months. If he's making interest why should you put up with hassle for a discount.
If they are comfortable and getting something for nothing then why would they move on.

Snooze

spirit wrote: »

Hi Tomaz64,

I would say never let to friends and family for the same reason they say never to sell anything to them! It's difficult to set and keep the house rules which isn't usually a problem with a lodger you don't know.

Agreed. Avoid it if you possibly can. Consider the possibilities of how you'd handle him suddenly not being able to pay his half of the rent. He's a mate - and he will make sure you know it - so you can't chuck him out because it wouldn't be right, would it, so you end with him living with you rent free.

Never mix business with friends - it's a recipe for disaster. Trust me, I've been there. People always want to be your "mate" when it's working in their favour but when the tables are turned you quickly find that you're not as popular as you originally thought...

If you do go ahead with it I would strongly advise drawing up a legally binding tenancy agreement which he signs, then if the !!!! does hit the fan at a later date and he suddenly can't pay his half anymore you can do something about it. I've no doubt he'll screw his face up at the idea of doing that and you'll hear things like "I thought we were mates, don't you trust me?" etc but business is business...

Rob

tomaz64

thanks for all your advice,much appreciated!!its really the thought of someone in constantly thats putting me off!!last lodger here left about 15 months ago,having lived here about 4 and a half years!!we were like ships that pass in the night!!he worked days!! went back home to his mums for a few weeks a year!!paid his rent no problems.......now my mate hes a totally different kettle of fish!!........aint worked for 8 years....(had a bad back one day and just never went back)sued his previous employer,took his brother to court regarding the sale of his previous property(they bought an ex council house together with his mother being a sitting tenant there, and he has been trying for 8 years to get his brother to either sell it or buy his share so he can move on).......now he rang me last week and states he needs to vacate in two weeks and cant find anywhere ?????....and im like 'erhhhhhh'........personally i dont want the hassle and getting the 'are you letting him move in then' from some friends and 'i wouldnt touch him with a bargepole' from others!!lol

tanith

If some of your friends are saying "wouldn't touch him with a bargepole" then I'm with them.... sounds like your 'mate' is ok when things are running smooth but can turn 'the other way' when its not going in his favour... you already have reservations and he is going to encroach on your private space BIG TIME if he is home 24/7... its better to risk upsetting him now than having upheaval in your own home and then not be able to get rid...... after all if you can't say NO now then would you be able to get him out at a future date....