It is as simple as this. If your mortgage was 8K a month you wouldn't ask him to pay 4k. You would ask him to pay the rental comp. So if paid off your place he could not expect to live there rent free. If he is being a punk now he will always be a punk. Find a new room mate
Risk? You're not really taking on any additional risk by having her live there. After all, you're living there too. If something breaks, you'd have to replace it anyways (unless she was directly responsible for it). As stated before, using a 1/1 as a comp is absurd. Go to any apartment website and looks at the prices for a 1/1 and a 2/2. Can you describe your unit in greater detail? There are so many condos/townhomes in the galleria area that I doubt you are unable to find direct comps. Is she paying for half of the utilities? And keep in mind that you're building equity off her. And while you should be paying tax on the rental income you probably won't. Also, don't underestimate the peace of mind that comes from rooming w/ a friend as opposed to a total stranger.
This would be assuming that he would actually buy this place if he didn't have a roommate. I say, just be fair. Split every expense 50/50. You are the one benefiting from building equity, so if you have to come out of pocket if your friend flakes on you with regards to a repair, than it isn't the end of the world.
Apparently, he has calculated that he can get more than half of his costs paid by renting to a friend. If this were a stranger there would be no issue.
You're right but you are going to be making money off your friend. She probably doesn't see that you are losing income by letting her rent it at your perceived discount. You'll be reversing the angle from making money off you to actually losing money by having you rent it.
It should be a safe assumption. Otherwise, he shouldn't buy something he can't afford. Splitting every expense 50/50 isn't fair. That's a huge benefit to the OP. For instance, let's say the air conditioning unit needs to be replaced after a month. It isn't fair for the roommate to pay for any of it. In terms of expenses, "fair" would be having the roommate pay for 50% of utilities only.
If he can get more than half his costs paid by renting to a stranger, then his friend should stfu. No free rides.
You're being a business-class-ass if this is really your friend. If she's just a girl that you want to **** then that's something different entirely.
Funny how everyone has no problem with spending your money....lol. Do whatever you want, if you got it as somewhat of a rental property, explain it to the girl, and she can make her decision. Don't waffle on what you are trying to do, it is your business. DD
haha this thread went about how i figured it would... thanks yall. i do find value in renting to a good friend rather than a complete stranger. i work a lot and i want someone i can trust and her and i have been good friends since college. imo the amount i'm offering is below market. i dont mind coming off the rent some b/c of that (maybe) either, i just don't like her expecting me to share my finances nor expecting that we should split the cost evenly. as it stands, though, it's already pretty damn close to 50/50. i'll likely meet her in the middle somewhere and tell her to take it or leave it.
Just be aware that the comparable market rent for a private room/bath in a 2/2 is not the same as an entire 1/1 apartment. Also, what makes your unit so unique that there aren't direct comps for it? Was it built very recently?
there's a 2/2.5 and several 1/1's to compare from and i'm estimating mine firmly in the middle. i'm not an idiot.
