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.

@Crocsandshocks who will be handling the bookings, problems, doing the changeovers??

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.

Yes exactly. They often stop me to ask me for things or to fix the TV remote or can they borrow the washing machine in the house.

@Crocsandshocks I'd redirect any questions to him then. He may rethink his stance after getting annoyed enquiries and poor reviews. Or you could charge him a flat administration fee of £20 per guest query.

However having said that, it looks like he is paying more than his share of the bills, so I'd consider that before going nuclear.

It's all a weird financial set up. I take it the garage / now converted is unusable to you? Regardless of the conversion you own half of the garage.

I love that you're just ignoring all the posts saying you're h reasonable.

He's paying more into the family pot (bills) than you and has used his money to improve the joint asset (house) and provide a joint income (Airbnb) down the line. You are being very grabby.

If the woman got a mortgage for the air b n b then it should be a share , but she hasn't put money into that so that's a fair arrangement. I'm on the man's side

What bills do you pay OP?

I think the man should recoup his costs and possibly any loss of interest before splitting the profit. There may be an argument that you should be paid for any work associated with the air b&b, but there may also be an argument you should be paying more towards bills so that could be seen as a trade off.

The garage is half owned by each of you as part of "the property" unless there is a clause in the deeds or other legal paperwork saying he has a prior claim on the money he put in for upgrade.

Did you both agree to doing it up and renting it out? Did you have to put up with the disturbance, do any of the work etc. I guess you could charge him for renting your half of the garage out, or do you have full use of your half whilst his half is rented out?

Very complicated, but he is trying to minimise it down to "my money, you do it my way" even though you actually own half of this property.

This.

Pay him half the 18k and ask for half the profits if you don't like how it is. Otherwise it's not fair that he paid an extra 18k on top of paying all the bills

There's such a lot of work running Airbnb who does that?
Realistically you should already be paying half the bills so you are saving there plus the garage adds additional value to your investment.

I wouldn't push too hard for profits until the £18k is paid off.

Who is doing all the work associated with the b&b? and is the woman person being compensated for that?

I think that woman is peeved that man wanted to set up an airbnb, and is trying to get her own back in some way. This is not really a financial issue, it's a disagreement over whether they should be running an airbn or not. Neither are being unreasonable necessarily, they just don't agree.

To make things fair financially, Woman offers Man half the cost of the airbnb set up, does half the work of running it, and takes half the profit once the initial £18k is recouped.

Woman also starts to pay half the household bills. They have both contributed half towards the purchase of the property, albeit woman had to raise this via mortgage, not man's responsibility.

But none of this solves the problem that Woman doesn't want the airbnb there in the first place.

There’s no profit until the 18k is paid off. He should have the full wack until the 18k is paid off and then split.

I asked that question too. Still waiting for clarification.

Agree with this. He's paid more overall.

It's all a weird financial set up. I take it the garage / now converted is unusable to you? Regardless of the conversion you own half of the garage.

Well this is also the thing. Whist it may have contributed to adding value to the house, we now have no use able outside storage space to put bikes etc. My bike is now rusting outside.

We don't have free use of part of the garden now as it's cordoned off for air b n b.

Also re bills I pay majority of food and clothes, toys for 2 children, so with bills it equals out. Also dont forget I'm paying interest on the mortgage payments so I'm paying a lot more than the £125,000 he originally has.

We are Co habiting. Yes it's weird.

I don't think you can include the interest on the mortgage in the calculations.
Are they his DCs?
Were you consulted before he decided to turn the garage into an AirBnB ?

This

OP is way too slippery in their scant replies

I think your problems are deeper than having an air bnb tbh

The man should buy half the garage off the woman before making any changes for profit.

what a weird set up.

Your set up is a challenge, yes.

You've both contributed equally to the house purchase. You've had to borrow to cover your half that's on you.

If everything was equal you'd also be paying half the bills and from what you've said, he is paying these.

It's with hindsight now but really you both should have raised the money for garage conversion together, and run it together. Then when it inconveniences you it doesn't matter as you'll be profiting from it.

The conversion will increase the value of the property so you'll be entitled to half this increase as a home owner. That's another plus.

As he's not expecting you to contribute half of the monthly bills his suggestion is reasonable. You are doing well out of this arrangement. But I'd let him run it. Don't wash, clean or change beds. Give the guests his phone number and let him sort things out.

At todays prices and difficulty with holidays abroad he'll easily recoup his costs in a few years. By this time you can run it together.

Ask him to put up a shed (he funds) for your bikes to go into to prevent damage and theft.

I'm assuming any children aren't his? And that you are not married. If you are married and share children my reply doesn't apply at all.

My bike is now rusting outside.

Get a shed.

You (together with the mortgage company ) company already owned a half share of the garage, and half share of the section of garden which has been cordoned off. So your partner has unilaterally taken part of your property to run a business.

I reckon the business should be paying you rental on your half- share of the garage/garden. This should happen irrespective of profit, because the business is set up now on property you jointly own.

It sounds like quite a complex ownership arrangement, did the pair of you not get legal advice first?

Oh, and if he’s running the Air bnb he needs to install a washing machine and field the enquiries.