My Mum has moved in and wants to pay rent, how much though?

[SecondhandRose]

My Mum sold her house and moved in with us last month and she now has suggested that she pays us rent. I've got no idea how much to ask her for, what do you think?

She has her own large room, shares bathroom with the two kids, her own TV area. I cook for her but quite often she'll buy her own dinner and make just for herself. She has bought a few bits of food like some ham the other day but apart from that we are supplying everything.

She is planning on buying another house but just hasn't found one to buy at the moment, she is getting a lot of money in interest on her house money each month but then I don't want to rip her off.

What do you think? How much is a fair rent?

TIA

£100 a month

#50 a week??

I used to pay my PIL £25 per week. So £100 a month sounds fair to me.

Not sure, but £100 a month doesn't seem much. Would hardly cover her share of the food and utilities bills. Have you tried asking her how much she feels is reasonable? I guess it also depends a bit on how much you need the money...if you are having to take money away from other things to pay for her food and she has plenty £££ in the bank she should pay a bit more than just covering your costs IMHO. OTOH, if you are quite comfortable and its only a short term arrangement, I would perhaps suggest she could buy the food shopping or do some babysitting???????

Dont know, agree its really hard asking family for money!!.

Not quite the same, but...

We have a student staying with us (between student houses), and she is paying us £40 a week. I usually cook for her (occasionally she cooks for us). This is still less than she will be paying for rent alone in a student house. In addition, she is like Mary Poppins with the children (in a good way!)

I was thinking of asking what her expenses were each month at the old house. To be honest we do need the money, we have huge outgoings and two credit card bills that need paying off.

I don't think £40 or £50 a week is too much to ask and she'll want to feel she's paying her way too. Maybe you could just give her your bank details and ask her to put what she thinks is appropriate into your account regularly. If it seems too much, then you can tell her so.
That way the ball's in her court.

Aero, I need to have the cash due to the tax implications of my Mum giving me money.

Did you pay rent when you lived with her?

No, but I was earning a pittance.

Why not write down what you think, ask her to write down what she thinks and take an average

i couldn't charge my mum. we are not speaking and doubtfully ever will, however if she turned up on my doorstep becuase her house had burned down then even though she has money in the bank i couldnt charge

If you're buying food and cooking for her, why not just suggest 1/4 of the food bill or soemthing?

I would also just take advantage of her presence in terms of free babysitting! Most mums would love this, she would feel as if she is helping and you could have some time out.

Have your expenses significantly increased since she's moved in? If not then I would not charge her, but contributing towards food and doing babysitting once a week sounds like a fair deal to me (of course it does rather depend on how long she stays!....)

As she has suggested she pay you rent, I would accept.
Why not ask her if she has a figure in mind - it may be pretty realistic as she knows how much it costs to run a home etc.

On the other hand, if she doesn't pay rent and she stays longer than expected, can you cope with the additional bills?

£40-£50 a week?

Katymac, Brilliant idea.

Why not try that, SHR?

SecondhandRose, if you are renting out part of your home, you can earn a certain amount tax free per year (£4250/year - just over £350/month). So there are probably no tax implications. See here

Errr, what tax implications of her giving you money? You can have a lot more than £50 a week tax free under the rent a room scheme?

Surely it depends on the market value of your room. Where do you live?

I used to pay my mum board of £20 per week but that was 7 years ago

When I lived at home we agreed on a percentage of income, that way when I was studying and only working a few hours I paid them peanuts, but when I worked more in the holidays and when I had proper job I paid them more. IIRC it was 25%.

My mum is in her 70's so the tax implications are to do with inheritance tax. I asked her if she had a figure in mind and she said no. So I've suggested she work out her monthly expenses at the old house and perhaps pay that.

OK but even for inheritance tax, rent will not count as a "gift". You would only have a problem if the rent was clearly excessive (and it doesn't sound as if you're in that ball park here).

Personally, I could never, ever ask my mum to pay rent. My home is hers, the door is always open. even though we'd probably kill each other after 3 days under the same roof.

That goes for my family & friends, too (door open, not killing each other! ). But i would be miffed if contributions weren't made for electricity, food, heating, etc.

It's not so much rent, she wants to pay her way, paying a share of what she uses in the way of food, utilities etc.