What should I charge?

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From: Pauline C


I live by myself in a 2-bedroom house that I currently rent for $134/week. A friend's daughter (18yrs) from interstate wants to live with me while completing a university course for 4 years.

My question is how do I decide what is a fair rent charge? Do I charge a set weekly rental, i e $50-60/week plus expenses (and what percentage should this be 50-50?) or should I average out the utility expenses for a year and add it to the base rent charge and just charge one price.

The young lady concerned is fully aware that I am unable to support her and shouldn't have to, and that she will need to pay her way.

I want to be fair to her while not losing out myself.

Any advice would be greatly appreciated :)
 
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Reply: 1
From: Mark Laszczuk


Pauline,
As a renter of several years now, I believe that everything should be split 50:50, as you are both living there equally. Except the phone, calls should be user paid. There are a few ways you can split these, talk to your phone company. This is the best way to do things, believe me. No arguments about money everyone knows what they are paying every time a bill comes in. And make sure you discuss things before she moves in, leave nothing to assumption. That way, there are no surprises for anyone. If she doesn't like it, she can always get her own place...

Mark
'no hat, some cattle'
 
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From: Ten of Diamonds


If you plan on her having equal rights on every decision about the house (like flat mates) then charge her half, however if you want an arrangement where you are more in control of your place, then charge her around 40%. I'm in the same position at the moment with my sister who is staying at my place for a while. I haven't quite decided what to do about the bills, I think I will average them and add that amount to the 40% of the rent. Phone should be kept separate, at least until you determine her phone habits.
 
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From: Anonymous


I presume that those owners renting out a room to a friend, or sister, will at the end of the financial year then add up the shared costs, determined prorata, then deduct the rent, and negative gear, thereby claiming against their PAYG, bearing in mind the possible CGT implications when they decide to sell the house/unit.
 
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