An air b n b one

[Crocsandshocks]

Help me solve an argument. Who is bu?

Man and woman jointly purchased a house 5 years ago. Man paid £125000 deposit. Woman took out a mortgage for the remaining £125000.

Woman therefore pays 560 per month on the mortgage. Man pays electric bills and council tax.

Man decided to convert double garage in the garden to an air b n b. It cost man approx 18k. Man has said that once he recoups the 18k woman can have half the monthly income from the air b n b.

However woman thinks she should have half the profits from the start seeing as she is paying the mortgage on the overall property.

Who is bu here? Any legal or money experts that can advise?.

I am the woman, by the way.

Also. Woman is putting up with the inconvenience of guests just the same as a the man is. Yet not currently getting compensated.

That's tricky. The only thing I'd suggest is that if he is your partner then you are not his partner. Not very wholesome behaviour.

The only thing I'd suggest is that if he is your partner then you are not his partner.

I'm think I know what you mean here but I'm not sure!

I'm kinda with the man here. Maybe a 75/25 split til he gets the 18k back.
It's never going to be totally fair arrangement unless the mortgage costs are equal to the council tax and other bills he pays?

But you’re only paying the mortgage on your half and how will he recoup that 18k if you get half. As you’re dealing with the inconvenience maybe you get a little bit otherwise he’s put in 18 k more than you

You are being unreasonable. The garage conversion will add value to the property that you will benefit from. He's not saying he wants to keep profit, just recoup his costs and once profit is made he will share it with you.

I mean the man is getting shafted here, he's paying more overall so I'm on his side!

It’s going to take a long time to recoup £18,000. I think it depends on who is doing all the paperwork, accounts, filing accounts and tax return for AirBandB, cleaning, costs associated with it. If he’s doing all this and paying tax on his profit from it, then he should get it, but if you are doing some of the admin and work, then profit needs to be split.

Who is meant to be running the air bnb? Making the bookings, answering queries, cleaning, doing the laundry, changing the beds, buying the little extras (if any are to be provided?). If him, then yes, he probably out to recoup most of his costs, less an amount for the inconvenience to you and for the loss of the garage. If you - then either you get a percentage of the profits or he pays you a wave to do so.

Wage! Not wave. And ought, not out.

So you both pay £25k, but you don’t pay bills? But you want to profit from even more
money he is adding?

Thinking about it, there could also be additional wear and tear costs due to multiple guests in the property. Who would be responsible for paying for those ?

We bought a little holiday home, we paid cash on a 50/50 basis.

I did it up (it wasn’t livable) and it cost me about £30k, this came out of my personal savings and pretty much left them empty. Until I recoup my £30k profit made is mine, once I get my money back all money made will be split 50/50.

My husband owns a summer house in Sweden, he paid for it himself, so any money he makes on it belongs to him. Legally I’m unable to jointly own this, so it will be likely remain him having all the profit as I’m not investing in something I don’t own/can’t gain a share of.

You're both putting 125,000 in to the property, you are just paying yours off monthly so that figure is irrelevant. You also make it sound like he is paying extra bills - council tax and electric. So is he paying more than you here too?
As he is paying the 18000 to convert I would think it was fair he recoups his costs back before you split the money made by the Airbnb equally. However, as you are doing some work/admin for the Airbnb, work out how much this would cost to pay employ someone to do. Then you can subtract that from the Airbnb fee paid each time?

It's a complicated situation, which is hard for any of us to decide either way. We don't know for instance who earns the most (and if the person who earns more should be putting more in to the 'pot' anyway).

I think he's right. He's paid for his half of the house. He pays the council tax and bills and he's invested money in the business.

You're only paying the mortgage on your half.

Are the man and the woman married? Co-habiting? Do they have children together? Or are they just house-mates?
Because I'd give different answers depending on all of this.

I think the man is right. He has sent 18k on getting the garage converted, and is 18k down. Once that's paid back, you can share Profits.

Can you pay him £9k now which is your share of the costs?

You are paying the mortgage on your half of the property. Based on your agreement the mortgage isn’t anything to do with him. You are making it sound like you are doing him a favour by paying ‘all’ the mortgage but you aren’t.

im with the man, once he has his 18k THEN it gets split, If she isn't paying anything for it and its not costing her anymore on her mortgage then of course she isn't entitled to the worth until he gets his money back for doing it UNLESS she does ANYTHING for the B&B guests then she should get paid BUT my husband would automatically share the money with me as he isnt selfish.

The whole set up is weird tbh so I don’t think there IS a “right” answer anymore. Are you a couple? Married?

Do you also pay monthly bills? If you’re wanting a fair 50/50 financial split I think those should be split 50/50 and so should the £18k have been. You seem to want your cake and eat it at the moment!

I with the man you want to profit off his financial investment without committing any of your own money. Eventually you will share profits on something you put no money into so not a bad deal really. Maybe give him 9k now and then share 50% of the profits.

Is this a business arrangement or a relationship? It sounds very official which is fine, you need to protect your assets and so does he.
I'd say pay him the £9k if you can to get back on an equal footing.

Also - thinking about it - is the Airbnb in the property that you're both living in, as that's not clear.

If so I would expect some share of the profit because it will be disruptive and Airbnb renters don't care who is paying for what when they need keys, or to speak to someone about their rental.

The man should recoup his costs first then split the profit.