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    Former MSE Penelope
    MONEY MORAL DILEMMA. Should Terry and June charge their son rent?
    • #1
    • 16th Nov 09, 11:10 AM
    MONEY MORAL DILEMMA. Should Terry and June charge their son rent? 16th Nov 09 at 11:10 AM
    Here's this week's hypothetical situation for you to cogitate on:

    Should Terry and June charge their son rent?

    Terry and June own a rental flat in London; their youngest son is moving there straight from school to start a new job, and wants to stay there. Yet the couple let his two older brothers live there rent free, while they were students. However, as he will have a full-time job, Terry & June think he should pay rent. He thinks it's unfair, as the others stayed for nowt.

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    Last edited by MSE Martin; 18-11-2009 at 9:42 AM.
Page 1
    • ses6jwg
    • By ses6jwg 17th Nov 09, 10:20 PM
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    ses6jwg
    • #2
    • 17th Nov 09, 10:20 PM
    • #2
    • 17th Nov 09, 10:20 PM
    IMO he should have to pay to cover the utility bills, council tax etc.

    I think charging your own son rent to turn a profit is bordering on the obscene.
  • splendiferous
    • #3
    • 18th Nov 09, 1:56 AM
    • #3
    • 18th Nov 09, 1:56 AM
    That's a hard one. His brothers were students, however he is going there to actually WORK a full-time job. I would either take a small amount of rent, or give it to him rent free for a while (a year for example) to allow him to get on his feet. But I wouldn't take any money for the sake of making a profit, that's just ludicrous to do that to your own child.
    • Sbarkia
    • By Sbarkia 18th Nov 09, 1:57 AM
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    Sbarkia
    • #4
    • 18th Nov 09, 1:57 AM
    • #4
    • 18th Nov 09, 1:57 AM
    Yes he should pay rent if he is earning, if only to teach him to manage his money, or he will have a serious shock if and when he wants to move on. I'm sure they would not charge him the full market value. In any case the parents apparently own a 'rental' flat, and if their 'tenant' does not pay rent they will be considerably out of pocket.
    • LeeSouthEast
    • By LeeSouthEast 18th Nov 09, 2:20 AM
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    LeeSouthEast
    • #5
    • 18th Nov 09, 2:20 AM
    • #5
    • 18th Nov 09, 2:20 AM
    Just enough to cover the bills.
    Starting Debt: ~20,000 01/01/2009. DFD: 20/11/2009
    Do something amazing. GIVE BLOOD.
  • suetony88
    • #6
    • 18th Nov 09, 2:22 AM
    • #6
    • 18th Nov 09, 2:22 AM
    He should most definitley pay rent and all the utility bills. It does not have to be for a profit though. They could keep the money aside for him until he wants to get on the property ladder. Then they can surprise him with a lump sum.
    If they do not charge him any rent, he will not understand the responsibility of money and paying for his way in life.
    • pennypinchUK
    • By pennypinchUK 18th Nov 09, 3:24 AM
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    pennypinchUK
    • #7
    • 18th Nov 09, 3:24 AM
    • #7
    • 18th Nov 09, 3:24 AM
    Preston: I shouldn't have to pay rent on the flat. My brothers got to live there free.

    Mum & Dad: Your brothers were students when they lived there. They didn't have an income. You do. So it's only right you should pay.

    Preston: But it's wrong that you should make money from your son.

    Mum & Dad: This is a rental property that we bought to help us with our own income. If we give you free rent our income goes down. Does that sound fair to you?

    Preston: Well I think you're exploiting me.

    Mum & Dad: We're not charging exploiting rent (Ed: Mum & Dad are probably offering Preston a cheaper rate than the commercial rate). If you're unhappy about paying us rent you are welcome to live elsewhere and pay rent there. We'll just rent the flat out to someone else at a commercial rate. Welcome to the world, son.
  • ailuro2
    • #8
    • 18th Nov 09, 6:08 AM
    • #8
    • 18th Nov 09, 6:08 AM
    What pennypinch said.

    If they could be making money out of it but aren't then they'll be worse off.

    Coming to an agreement where he pays their costs plus a little more to soften the blow of losing this income is the way ahead.

    If the flat has two bedrooms he could share with someone else to help with the bills.

    Nothing in life is for free (apart from the things on the freebies board here!) and any parent who lets their child think otherwise is just storing up trouble for them.

    If he starts work and has lots of disposable income he may end up spending it and being used to treating himself all the time, then when he moves out and pays rent or a mortgage, he will still want to buy all the consumer goodies he's used to, and may well end up in debt to do it.

    Better to start hom off on the right foot. Of course if they're loaded then they could keep the money without telling him, then give it back when he needs a deposit for a mortgage of his own.
    Member of the first Mortgage Free in 3 challenge, no.19
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    • Amy L
    • By Amy L 18th Nov 09, 8:00 AM
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    Amy L
    • #9
    • 18th Nov 09, 8:00 AM
    • #9
    • 18th Nov 09, 8:00 AM
    Yes I do. When i was living at home whilst doing my A-Levels, and when i moved home in my 3rd year of uni, doing a full-time placement year my mum got me to pay rent (up to 400 a month). Little did i know that instead of that money going into her pocket, it was infact going into a long term saving account for me to use as a deposit for a house.

    I'm now doing a PhD, still renting, and still adding to that account now I know about it (!!) so it's a substantial amount.

    Maybe the parents should charge him, take out of that amount the money owed for basic upkeep (food, cleaning, washing clothes, bills etc) and put the rest into a "secret savings account" as being so young maybe he doesn't appreciate the value of saving?
    • roses
    • By roses 18th Nov 09, 8:26 AM
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    roses
    It depends on what they would do with the flat if he didn't live there. Would they rent it out to other people? If yes then they should charge him something, maybe a bit less than market rent. If they don't intend to rent it out and leave it empty then he should just pay for the bills.
  • Dusty879
    Yes they should charge him. We charge our son and he works away most of the time. His thinking is that if he had his own place he would be paying out money for an empty place and it would cost him about 3 times more to what we charge him. Terry and Junes' son has to learn that life has to be paid for at some point, so he might as well get started now.
  • CarineG
    I think they should charge him rent
    I think it is fair that they charge him a reduced amount of rent. It will teach him to be careful with his money and to budget for his expenses.

    A colleague of mine whose son lives at home but is in full time employment charges his son rent.
    The money goes straight to a savings account and he will be giving the money back to his son when he is older and plans on leaving/buying his own place.
    His son doesn't know anything about this.
    I think it is a great way to do it. The parent don't make any money out of their son and he will find himself with a considerable amount of money saved up in order to start in life...
  • t_fairy
    I don't see any problem with them charging their son rent, you can't expect to live in London for free! I am sure they would charge him less than the market rate which he should appreciate and I think is fair.
    I would suggest he pays a monthly rate inclusive of bills, he will learn the value of money, and then perhaps look at giving some of this back to him when he comes to move out so he can use it towards a deposit on a place of his own. By doing this you can ensure he won't stay there forever and you can begin renting out the flat again at the market rate.
  • BFG
    Charge the sponging little git the full whack.
    • armoured-smiler
    • By armoured-smiler 18th Nov 09, 8:50 AM
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    armoured-smiler
    So just goes to show you. Don't go and work and pounce of your parents as a student as you get more.

    If you pounce on your parents and stay as a student(or unemployed) you get a paid life and if you go and try to stand on your own two feet and go to work instead you have to pay (IE get no concessions just like the government is doing). So why are people only complaining about the government when it is doing the same and not parents as well?
    • geri1965
    • By geri1965 18th Nov 09, 8:52 AM
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    geri1965
    It's ponce, not pounce.
  • christian138
    Most of this has already been said but this is my take.....

    He should definitely pay rent, but these factors should be considered
    how important was the rent they were getting from commercial rent?
    how much will he be earning?
    I would probably charge him percentage of his income at say 60%, with a ceiling of what the commercial rent was after agents fees. This might have a tapered start so starting with 30% and then moving to 60% over 6months.

    Then i would put aside a proportion of this rent (depending on my own financial circumstance) so that at some stage he would have a deposit to put down on his own place.
  • Soulful820
    Yes they should
    Their son needs to start to learn the value of money and pay his way in the world!
    I would suggest however that Terry and John only cover costs of the property and dont make a profit on their son but he should contribute something
    • bobb1985
    • By bobb1985 18th Nov 09, 9:05 AM
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    bobb1985
    I think it's crazy that mum & dad let his brothers live in the house rent free whilst they were students!!!
    When I was a student my mother charged me 50 a week to live at home over the summer and easter holidays.
    • swinstan
    • By swinstan 18th Nov 09, 9:06 AM
    • 89 Posts
    • 60 Thanks
    swinstan
    Of course he should pay
    Of course he should pay. He's a grown up, living in the real world. This is not a case of profiteering at the son's expense. Many of us are trying to do what we can to build up savings or pension for old age. Why should the parents take a hit on their income just to subsidise him? They may well need that money.The case for the other sons was different, they were still in FT education.

    We all want to do our best for our offspring but isn't teaching them how to manage their own money one of the most important gifts we can give? If the parents are lucky enough not to need the income, they might choose to return some or all of it later, maybe towards a deposit, but it should be that way round - as a gift and not as a right.
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