Is this fair?

[Financequestionnewname]

Having read another thread and considering my partner moving in. I want to be fair to both of us, is this fair or AIBU?

He rents his home out, very tiny mortgage.

He moves in and pays half council tax, half utilities, gas, electricity, water and phone, TV etc.

He pays amount in rent, not yet decided. He says no rent but them surely he gains in rental income from his property by living in my home.

Food split and other costs split or pay for our own items.

Thoughts please?

Is some rent being unreasonable?

You say you used to....

I very much suspect this was before the change in Electrical requirements and the requirement for the landlord to pay for all referencing and credit checks which used to be charged to tenants. Good for you that you managed to let out a property when it was less regulated and I suspect you could claim any mortgage interest payments against rental income to reduce the tax payable which you can no longer do.

You may as well say I did O levels but this is how you should do your gcse.

That's a head scratcher!
Considering you want to keep all finances separate and he not have have any ownership of your house at all, nor you his, I'd say dont take any rent.
You should be a bit better off anyway if he's splitting all the other bills with you.
If I was him though, living there rent or mortgage free, I'd feel like I was just staying in your house, rather than it being home.

I would say split all bills/food

Split the PROFIT from the rental 50:50

The costs would be deducted before any consideration given to paying me anything. After all costs, agents fees and tax so only talking about net profit anyway.

Yes if you read above it was actually me that suggested that the profit element be split with you. My answers were to posters who seemed to believe he should just give you half the actual rent rather than profit.

I guess the question is after all costs should he keep it all, contribute a bit more or perhaps use for treats. Not 100% sure we will live together, its being discussed. Best to sort out all costs etc before moving in. Or we stay as is.

Thanks.

Whatever you decide OP, I think you should see a solicitor and get a cohabitation agreement drawn up to protect you both.

What about putting it into joint savings, so you both contribute a percentage that is fair based on your outgoings. Then use it for holidays, big purchases etc. if you break up, that's divided 50:50

He pays you rent or he doesn’t move in…. He would pay for a roof over his head anywhere else

I miss living alone.

Living with other people is always compromise, dealing with other people's mess/ noises/ breathing

Even when you love them dearly, sometimes you want the selfishness of wearing whatever you like (or nothing at all), playing your chosen music loudly and not bothering to clear up if you don't want to.

On the other hand it's lonely at times, and when you're ill there's no one to bring you drinks/check you're okay.

If I was in your position, I would only want someone moving in with me if they were making my life better in every way - including financially.

Rental income is taxable (there is an allowance if a basic rate taxpayer)
He will need a BTL mortgage (possibly some allowance from bank for a period) which will be on a higher rate. Hard to get a small mortgage as well.

But so does his asset, that he doesn't need to live in as he's living with op

I’m talking about his asset.

If he owned the house outright, then rent - minus expenses would give profit. He’d still have an appreciating asset in the house (assuming our housing market continues to increase above inflation), but he isn’t using some of the income from the rent to buy the house itself.

Since he doesn’t own it outright, rent - expenses = profit + investment in the asset itself (i.e. the mortgage payments).

The other way to calculate it would be rent - expenses, but not include the mortgage payments in the expenses.

Otherwise, he could easily make the rental a net loss by increasing his mortgage payments. So OP would get less cash off him while he gets greater investment in his assets.

Tell the waster to pay £500 rent and the bills split or he can stay in his own place.
Ive had "poncing" men before, they know how to talk the talk

Thanks for the replies. We will discuss next weekend. Currently I'm of the opinion to continue living apart.

No, not joint savings! He can take that out any time he wants, every single penny.