Tenants in common, rent split.

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Tenants in common, rent split.

    Hi,

    I own a flat equally with a friend. He wants to move out and rent out his room. Who is entitled to the rent?

    Thanks.

    #2
    I think that's for you two to negotiate. However, on the face of it, I would say that he is. It's his half of the flat to do with as he sees fit. However, if the new person defaults or breaks something or refuses to pay the council tax, then your flat mate remains liable to cover it.

    If the new person was moving in WITH the two of you, it would seem fair to share the income, but they,re not.
    IANAL (I am not a lawyer). Anything I say here is just an opinion, so should not be relied upon! Always check your facts with a professional who really knows their onions.

    Comment


      #3
      You friend cannot rent out his room without your consent. It is only his room in the sense that it is the one he occupies. Both of you own everything. Since your co-operation is needed you can control the terms on which the room is let.

      Comment


        #4
        Personally, I think the rent should be shared equally, as the way I see it, I technically own half of his room.

        For those that believe it is his rent, can you answer why he can earn more money from the flat than me, given that we have both taken the same risk? Or put another way, would you enter into an investment 50/50 where your partner would make more money than you?

        Comment


          #5
          Originally posted by AshleyRey
          I'm not totally agree with you. You are right if his and friend rooms have same size.Anyhow they have to negotiate it.
          ashley
          Maybe you can answer the question which I proposed previously, if you think my friend is entitled to all of the rent.

          " For those that believe it is his rent, can you answer why he can earn more money from the flat than me, given that we have both taken the same risk? Or put another way, would you enter into an investment 50/50 where your partner would make more money than you? "

          Comment


            #6
            If it were me , .................

            If he wants to move out, you buy his half.

            The rent he recieves goes to him, not you, as you will have no contract
            at all with the sub-tenant if your partner goes behind your back.
            However, you also own the property and can refuse to agree to have
            a lodger, and can insist you receive half the rent, and continue to
            receive all costs from your partner, in running the house.

            Such as insurance, mortgage repayments, etc etc.

            He can rent cohabitation and use of all rooms bar your bedroom,
            only with your permission.
            He can't make an A.S.T ( Assured short term tenancy ) as far as
            I recollect, as you as an owner, with be a live in landlord.
            ( Landlord because you are an equal owner ) so can only be
            a "lodger" staying there.

            Do you realy want a complete stranger living in your house,
            giving YOU grief, andnot your partner.

            The "lodger" has to be vetted by you too, and that is not why
            you went into partnership, to be inundated by people looking
            over the place, and every 6 months.

            Tell him you entered into a partnership on equity of a house, and
            not for him install a complete stranger into YOUR property.

            Tell him he is out of order, and that no renting will be allowed.

            R.a.M.

            Comment


              #7
              Originally posted by ram View Post
              If it were me , .................

              If he wants to move out, you buy his half.

              The rent he recieves goes to him, not you, as you will have no contract
              at all with the sub-tenant if your partner goes behind your back.
              However, you also own the property and can refuse to agree to have
              a lodger, and can insist you receive half the rent, and continue to
              receive all costs from your partner, in running the house.

              Such as insurance, mortgage repayments, etc etc.

              He can rent cohabitation and use of all rooms bar your bedroom,
              only with your permission.
              He can't make an A.S.T ( Assured short term tenancy ) as far as
              I recollect, as you as an owner, with be a live in landlord.
              ( Landlord because you are an equal owner ) so can only be
              a "lodger" staying there.

              Do you realy want a complete stranger living in your house,
              giving YOU grief, andnot your partner.

              The "lodger" has to be vetted by you too, and that is not why
              you went into partnership, to be inundated by people looking
              over the place, and every 6 months.

              Tell him you entered into a partnership on equity of a house, and
              not for him install a complete stranger into YOUR property.

              Tell him he is out of order, and that no renting will be allowed.

              R.a.M.
              Thanks for the reply, but you haven't actually stated who is entitled to the rent. If you can make your decision known, it would help me a lot.

              Maybe I should use some numbers to clarify the situation further for everyone. If I let him to keep all of the rent on his room, he will make £90k more than me on the flat over the next 30 years, so how can he justify this? Or put another way, where can I invest with someone else 50/50 and make more money than them?

              Comment


                #8
                You are making an equivalent return on your investment by not having to pay rent/mortgage for somewhere else to live or do you pay your partner a notional rent for your half of the property? Thought not!
                If property was bought with each paying 50% of purchase price, then equitable outcome would be for a current market valuation and one partner buys out the other, or sell the whole property and divide the proceeds.

                Comment


                  #9
                  Originally posted by Reactor View Post
                  Personally, I think the rent should be shared equally, as the way I see it, I technically own half of his room.
                  & he technically half of yours. What are you giving him?
                  He could argue that you and T should pay rent, monies deducted for repairs and profits then split. lol (You get what you paid back, gain nothing)


                  No one will be able to give you an answer. Its up to you guys to decide and that should include maintenance and management. You should really get a choice in the tenant also since you will be living with them, (should not be reasonably withheld).

                  Personally, I think you may be approaching this the wrong way. You could put the point across that of compensation for disruption? Ask friend to buy you out? or move out and agree with friend that WHOLE rental income to be split?
                  You could position yourself as the manager, maintenance guy as part of compensation for a percentage of rent.

                  At end of day, I have no idea about this. Id try and turn it into a business opportunity with friend rather than conflict with friend.

                  Comment


                    #10
                    A owner does not have pay himself rent when he occupies his own flat, hence I don't pay him rent, nor him me. It's his choice to move out, which will increase his costs.

                    More importantly, if I let him claim his room, then I'll be letting have the best room in the flat, as my room is not as good as his, so if I rent my room out at the same time as his, he will end up making more money than me again. This starts off the cycle of him claiming parts of the flat, which I can imagine resulting I him wanting a higher percentage of the proceeds, when we do sell the flat.

                    The answer is obvious, given that no one has come back on my question on, where I can go 50/50 on an investment and end up making more money than my partner. It looks like everyone here is in agreement that if the flat was sold, the profit or loss is shared out, but for some reason the logic isn't carried through when it comes to rental income.

                    Comment


                      #11
                      (For convenience the following ignores the different sized bedrooms.)

                      The starting point here is that you are each entitled to equal benefit. If you are both living in the flat then there is no problem. Equally there would be no problem if neither of you lived there and it was rented out - you would get half the rent each. Each person's benefit is living in one room sharing the rest of the property or half the rent and so the two must be equivalent. However, your friend cannot swap the live in benefit for a take-the-rent benefit without your consent. That leaves you in control and accordingly any discussion about what he may be entitled to is futile. He either accepts your terms or forces a sale.

                      Comment


                        #12
                        You have the benefit of living there which is cheaper than renting.

                        You and your co-owner need to come to an agreement about what happens when he moves out. Was this not something you discussed before buying together?

                        As you will be the only owner living there why don't you move into the best bedroom?

                        Comment


                          #13
                          No owner does not have to pay rent nor as your suggesting owner 1 has to pay owner 2 for someone else's use of owner 1's property.

                          Id not suggest you both rent rooms out individually but as a holding company rent the whole property out and split equally the rent. though just an idea and I imagine you still want to say their.
                          (or one sell other half to other)

                          As you say complicated matter, I think someone above said you have to agree to let in a different tenant, shouldn't be unreasonably withheld though I imagine.

                          P.S. I think you should get best room.

                          Comment


                            #14
                            Originally posted by Reactor View Post
                            no one has come back on my question on, where I can go 50/50
                            on an investment and end up making more money than my partner.
                            Sorrry, this is not a financial analysts investment site, so no one can
                            answer your question.

                            On your other question, it has been suggested :-

                            1) refuse to allow renting to another person.
                            2) Enforce your right to 50% of the rent.
                            3) Sounds like your partner is "cash strapped", hence him wanting
                            MORE money. So if it is possible, you may have to buy him out, then
                            sell up as you wont be able to afford the place.
                            But when it's then your own, you can have a lodger to help pay for
                            the place.

                            You only have those 3 options, and up to you which one you choose.

                            R.a.M.

                            Comment


                              #15
                              Assuming your partner's potential rental income is greater than your mortgage cost - which is how I assume you determine your partner would be better off than you.

                              How about when there are voids in the tenancy? What about landlord's insurance etc.

                              Other issues include: do you have a joint mortgage? Could your partner get permission to let?

                              Sounds like a minefield as mentioned by most other posters.

                              Comment

                              Latest Activity

                              Collapse

                              Working...
                              X