to start charging my sister rent?

[cerealnamechangers]

My dsis has lived in my mortgage free house for seven years with her adult daughter since we moved to a bigger property, in that time i have never asked for a penny in rent as we were pretty comfortable but she has paid all the bills for the house e.g. council tax. I was intending to keep the house incase any of my dc ever wanted to move in. The market rate for rent would be about 650-700 pounds per calendar month.
However we now have 2 dc at university and money is tight so we could really do with the extra cash to help them out. Dsis is not short of money and her and her daughter drive nice cars and go on multiple long haul foreign holidays, so aibu to ask her for a contribution for living there? I feel awkward asking her as she has never offered.

Ok do you think half market rent would be reasonable?

Of course she should be paying all the bills! She is Iiving there!
In my world, when you rent you still had to pay for electricity, gas, water, council tax, food, clothing, car payments etc....basically what we call living expenses
OP you have been very kind, and I hope they realize of that, but yes, if you can afford it, I'd charge them under the market value so everyone is happy (hopefully)

Ok we are all on the same page now

Lots of cross posting

I would ask for £100 per month each, which is way below market value.

I think people are not RTFT and think her sister is living with the OP and paying all the bills.

OP, you have two working adults in that house and they're not paying rent. That really isn't fair. You could've paid off your mortgage if you'd charged rent all this time.

Tell her things have got to change - after 7 years of no-rent I'd charge normal market value now.

She hasn't been living rent free, if she's been paying all the bills for the house.

???? As does anyone renting a property, you pay rent AND bills! Where do you people come from? If she hasn't paid rent, she is living rent free. How can this be confusing for anyone?

The OP did write that it was since we moved to a bigger property, so the OP does not live there!

It might not go down well, but I can't see anything wrong in asking her for a contribution, below the market rate would be a nice gesture. Just give her some notice, as she hasn't budgeted for it (1 or 2 months max!).

Well I would just say to her "with the kids at uni things are getting tight. I'm going to have to think about renting the house. Of course you can have first refusal and at a reduced rate, but I'm left with no choice now"

Sounds are really sensible and straightforward way of putting it. I'd go with that.

OP I am assuming this is a second home you own? Hence why she pays all the bills. Is that the case?

I don't think it's fair of your sister to live there for free. I think you need to have a conversation with her about why you need the money. Personally I think half rent would be fair, as you need the money and doesn't sound like they would be short, rather than just £100 but it's up to you, as it may not go well.

Doh. Wrong emoji. I meant I know I wasn't a sucker.

Half market rent is a fair compromise really. I would be delighted with that.

Half market value is more than fair OP.

For those posters saying 'rent and bills ' what do you think those renting normally pay! Rent, utilities and council tax are all normal.

Talk to your sister and be honest, you need the income. You will need a proper tenancy agreement and declare the income to HMRC. Research market rent and tell your sis what it is and the suggest an amount you would accept. For £600-650 I'd suggest £500. Give her the choice of paying or moving out and you will then rent it on the open market.

Totally missed the bills are paid by her. Doh.

In that case, have you calculated what she pays every month? If the house is paid off, you are probably paying less than she is at the moment! Notwithstanding that you bought the house in the first place of course.

At this point, I've changed my mind and rent on top of bills is unreasonable.

OP I wouldn't ask for half but more like £500, I would present it advice you need to take on paying £700 per month tennents, but if she wants to stay on she can stay for £500 she still gets a bargain.
You are still paying for a mortgage on one property, just think if the mortgage being on this property instead and stop thinking of it being mortgage free. You're paying, your sister isn't.

Unless you have some huge backstory where you have a huge amount of guilt towards her because you burnt down her previous house, permenetly dyed her daughters skin green and chopped your sisters legs off?

You could engineer her offering you some rent money.

Here's how I'd do it. I'd go see a lettings agent. I would be asking about renting a much smaller cheaper for myself, for a few years, while letting out the big house. The agent can advise you on the profit you are likely to make after costs and the rent differential. This is your back up plan. It has to be a real plan that you could follow if you wanted.

You mention to DSis that money is tight so you are looking at this temporary downsizing, which will net you £X extra, you are letting her know so it isn't too much of a shock when it happens but of course you expect she had already realised something like this was on the cards, what with money being so tight for you at the moment.

If she's smart she will offer you more than £X to keep the current set up.

If she's so grabby that she doesn't offer anything like £X and tries to guilt you then you do the backup plan.

I give up. My reading comprehension today is abysmal.

Sis is in your 2nd house rent free. Yes, charge her rent but still be prepared to ask her to move out if she refuses. Then you could rent it out properly.

Apologies for my misunderstandings, it's been a very long 24hrs.

Why vivienne?

She could be rent her house out for £650 a month! Instead she is letting her sister live there rent free. Now she needs that extra income so is going to offer her sister first refusal at half the market rent.

vivienne it's a second property, not the property the op lives in.

So far, if you think the property is worth £650 a month, she's saved over £54,000 by living there for free for the last seven years. You have done her a huge favour, but it's time to renegotiate. I'd ask for £350 (half of £700) as that's still a huge discount and much cheaper than anything she can find on the open market.

It's odd she hasn't mentioned it at all over the seven years, just hoping to stay that way I guess!

Hah cross post. Sorry viv

Haha vivienne, lots of cross posts on this one

Tell her in the next month a few rental agents will be round to value it for renting.

I take £150ish below the rent on other flats in the area if thats helpful op I felt a bit weird at first renting to relative but she needed somewhere our tenant moved out it has worked out fine