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.

[BarbaraofSeville]

Oh, sorry. For some reason I thought the sister lived with the OP and now see that she doesn't.

Of course she should pay rent, at say 25% less than market rate to reflect that she's family and presumably a stable, reliable tenant and they don't need to bother with a letting agent and their costs.

Otherwise the OP can't afford to carry on subsidising the sister, especially as it seems that she will just spend the money not spent on rent, rather than saving it for a mortgage of her own.

[SignoraStronza]

I would look up what social housing tenants pay and charge similar. Who is insuring the house OP? If you're relying on your dsis to cover the buildings insurance, can you be absolutely certain that you're covered (and named as the beneficiary on the policy)if it burns down? Otherwise, an assuming that property insurance and maintenance is a cosy you've been incurring for the last seven years.
Join the Landlords Association and draw up a contract.

[Soubriquet]

Go for it OP

See a solicitor and get a proper tenancy agreement. If she refuses to pay, then you are going to have to evict and look at finding tenants who will lay

[Soubriquet]

Pay not lay

[cerealnamechangers]

The Insurance is mine and I pay it.

[Theoretician]

Why on earth do people think bills mean she is paying rent?

I'm one of many that thought OP had posted they were all living in the same house together, in which case the sister would be paying OPs gas and electricity among other things. I don't usually misread posts, but this one is not the OP's fault as on re-reading the situation is clear. Surprised so many of us misunderstood.

[stopfuckingshoutingatme]

I would just say, sorry- times have changes and I need to rent that house out for more money DSIS. do you want to pay a reduced rent, or would you rather move on? give her a lot of notice

no good deed goes unpunished!

[SpaceUnicorn]

It's very difficult, and it's a conversation that I'd be dreading having, but you've subsidised her lifestyle for years now and it's no longer financially viable for you to continue to do so, as you're struggling to meet your own financial obligations or to fund your DCs education. If the shoe was on the other foot, what do you think she would do?

It's going to be a very awkward discussion, but unless she's a completely entitled bitch she has to appreciate how jammy she's been to live rent free for almost a decade.

[fbreading]

Sorry to be harsh but you are being taken for a fool..

Who with any respect thinks it's ok to sponge off another for 7 long years

[Maraschinocherry]

I am so trying that with my bank
"but I am paying all my bills, that means the mortgage is paid!"
I am sure that will go down really well

OP, brilliant suggestions above about advising her you will have to rent the house, and she gets first refusal at a lower rate.

Could you find a solicitor giving free first consultation, to ask if your sister has any rights? (as some kind of tenant). I have no idea, but maybe better knowing the facts to start with.

[QueenLizIII]

Not just your sister, her daughter is an adult.

Isnt it high time her daughter paid rent too as she can afford a nice car and long haul holidays.

Or it is high time her daughter moved out and paid her own way in life.

[MardyGrave]

She's taking the piss, but it's a situation you've sanctioned. Speak to a solicitor.

[YelloDraw]

*She pays all bills so doesn't live rent free! Surely the bills are rent?

How much would two rooms in a shared house, bills included be where you are (assuming they each have their own room). Because that's what it sounds like they're getting?

It isn't a shared house!

Reading comprehension....low

OP you've made a right rod for your own back here.

Best approach is to say you are finding things tight with kids at uni so are going to need to rent the house out - would she be prepared to pay £500/month (or whatever) or would she prefer to move out so you can let it out at market rates.

HOWEVER

If you are going to rent the house out you are going to need to do it properly and by the book.

• Signd AST
  
• Deposit protection
  
• Gas safety certificate
  
• Electric safety certification
  
• Legionaries risk assessment
  
• Maintenance
  
• HMRC self assessment
  

etc etc etc

[WatchingFromTheWings]

I agree with a PP who suggested you let your sister know you are struggling and that you need to sell or properly rent the place out.

[TirednessIsComing]

If you've already said about your car op and she's made no offers of money when she's had a he'll of a lot off you for free, then I expect rent will go down like a lead balloon.

I'd give her the option of staying there and paying say 75% rent or you'll rent it privately or sell it.

[MrsJayy]

You can do your own tenacy agreement you get them online and tweak them to what you are responsible for and what they are responsible for and all you need is a witness to sign it you dont need a solicitor i dont think

[Justjoseph]

I think that she has taken the piss really.

You left a mortgage free house to go and pay a mortgage elsewhere while she lives rent free....really?
Can not believe that a PP suggested you should pay her bills...anyone who rents pays bills.

I think it will be a nasty shock for her but the cash tied up in that house could/ should be providing you with an income....you wouldn't give her the interest from your bank or isa would you? Personally I would want full market rent, I'd be inclined to offer to allow her to pay a bit more but that is your investment not hers.

[Mummyoflittledragon]

Ok so you helped her out. Your turn now. And guess what? You can only see dust from the tyre tracks. She's soooo taking the piss.

[QueenLizIII]

Dont feel bad OP.

Jesus if I had been able to live rent free for 7 years paying bills only....god the money I would have saved, I culd have saved my own deposit on a home and then some.

If both your DSis and DN have pissed all their money up the wall, so be it. That isnt your problem.

[Justjoseph]

A bit less...not more!

[QueenLizIII]

You left a mortgage free house to go and pay a mortgage elsewhere while she lives rent free....really?

Yeah. You should been in the mortgage free house with mortgaged one being rented out or renting out the mortgage free house.

[TheNaze73]

Of course YANBU, I'm embarrassed for her, that she's never offered in the first place

[Oldraver]

So you are paying a mortgage on the house you live in, cant afford to fix your car or help out your DC's at Uni while you sister lives rent free swanning about in brand new cars...No wonder your DH bought up the question of making money from the house.

I think you need to spell it out to her...that you had intended for the house to be an income and cant put it off any longer. Offer her a reduced rent and if she is not in agreement, you will have to put it on the rental market

[SuperFlyHigh]

what is she planning to do in the future? buy or something?

if she's planning to buy I'd charge her a third.

if she's not then half the market value.