AIBU to charge my DD rent to live in a flat I have bought?

You simply don’t understand how student loans work. Interest is charged from the moment you take the loan out so the rent charged will not clear it. It’s pointless and expensive to do that!

Charge her rent, put it into am account, and use it to clear her student loan. It’s going to be really good for her to learn to pay monthly accommodation bills now. Teach her to budget! Too many kids have stuff handed to them on a plate whilst racking up hideous debt of student loans, you can fix this in one go ideally.

Seeing the huge debt my son came away with after uni, I wouldn’t charge rent on a flat I owned outright. She needs to pay her own bills though. The flatmate needn’t be aware of your private arrangement.

Surely any wealthy parents pay their student's rent? I don't know anyone in my peer group from school who didnt have their rent paid for them
So why would you charge her rent?

Oh people say this all the time to try and convince everyone/themselves that the only reason they're taking money off their kids is to help them. It's crackers!!! (If they really wanted to help them, they'd take the rent and put it into a savings account for when they finish uni)

I wouldn't charge my daughter rent.
I also wouldn't want my kids to miss out of living in halls at University, it's part of the experience.

I'm aghast at certain posters insisting that charging your student child rent is somehow the 'responsible' thing to do and will teach your child how to manage money. WTAF?

All it will teach your child is that you're very happy to take money off them when you really don't need to. Trying to dress it up as some kind of financial lesson is laughable and just demonstrates that you love money more than your child.

I certainly wouldn’t charge her rent. She already has loans and a part time job !

What would you charge if she was living at home with you? If she’d rent free at home and and you can afford it, I’d let her live rent free in the flat too. I wouldn’t be paying anything additional on her living costs though

Exactly what I was going to say - the irony of the OP sitting on her inheritance while saying she wants to teach her daughter things don’t fall into her lap 🤣🤣🤣.

That is light hearted - I do understand the sentiment of wanting to teach the value of money to your kids - I think I’d maybe get a small rent but put it in savings for her.

For me it would probably depend on whether she (and your other kids) are generally good with money and aren’t taking it for granted that they won’t pay rent. Assuming you don’t particularly need the money, and she’s generally sensible and plans to work hard, I’d probably not charge her (although check with your insurance etc in case you need to charge her a nominal amount so that she’s classed as a tenant).

Do whatever you can to ensure she doesn’t have to get a loan IMO. Is there a mortgage? Will the flatmates rent cover any costs to you?

Not all universities allow students to work in term time.

Well, that's debatable considering she wants to take a teenager's student loan off them.

You bought a flat for “totally nothing” and you didn’t have to do anything for that money to fall into your lap. Has it made you a bad person? Ungrateful? No, so give her a break!

I am not sure why you would charge her anything but if you must then make it a nominal amount. You can then quietly save this in a separate account to give to her once she graduates.

It shouldn't be news if you have children or are acquainted with the student loans system.

Student loans are tapered based on parental income. Why do you think that is? Did you think it was because they decided kids from privileged backgrounds need to learn what it's like to live on beans? Parental contributions are assumed, because most parents care enough about their kids to want to support them at University as much as they are able. The idea that parents might attempt to take a chunk of their own child's loan so they can put it towards purchasing an asset for themselves in pretty shocking tbh and certainly doesn't meet any threshold for "responsible".

Furthermore, the maximum loan for a student living outside of London is £10,554 pa. That's less than the cost of rent in many universities. Some students get jobs but anyone doing a more intensive course is going to be immediately at a big disadvantage if they have to do this, and that's if they CAN find a job, which isn't always possible. Spending 9-5 Mon-Fri in lectures and clinics and then adding shifts in at the pub or supermarket in between is also not "responsible".

I wouldn't charge my student daughter to stay in a flat I owned. Especially if I bought it with money inherited from her grandparents
It would probably be different if she was working but definitely not while she is studying.
We paid for our children's accommodation while they were students because their loan didn't cover it.

Im not necessarily talkinga bout the OP here, but what is assessed on paper is not always accurate. Some people (which is the point I was making), cannot afford that due to their circumstances and other committments which the government doesnt take into account. So blanket statements of 'part of being a parent of a non earning university student' are not accurate and are not helpful

All students should be working, too many 20+ young adults are leaving the world of study with not a jot of real life experience and its showing.

you just have a lovely flat for doing nothing, you were simply lucky enough to be born into your position.
do what you want obviously, but don’t imagine you have earned this property.

Yes, it is. As others have said, the government’s student loans system assumes that parents will financially support their children, according to what they can afford. It’s been like that for years. If charging rent that she doesn’t need just means that the kid has a much bigger loan then it make zero financial sense. I also said in a previous post that the students should be at least partly responsible for the bills, otherwise there’s no incentive not to be wasteful with electricity, water etc.

Is it?

Thats news to people who dont have that option or believe that its good for young adults to learn to be responsible

OP has a good opportunity to do that in a safe way for her daughter. I would charge rent but make it very much lower than market rate for her and then market rate for the flat mate, whoever that happens to be

OP - what are the tax implications if any, you'll pay tax on the income but also capital gains tax when you sell. Make sure there isnt any implication on letting someone live in the property rent free/less than market rate as it could affect your tax relief. Check it all out first.

This!

How could you charge your own child?!? A student, at that. Breathtaking….

Id ask her to pay bill and i would give hervextra money but no rent. Shea a child in ft education