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Richard
Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 54020
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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We have bought an apartment together with our daughter, she

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We have bought an apartment together with our daughter, she has 440.000 invested and we have lend her 1.2 million. We have not asked her to pay anything in interests till now.
But now her banker boyfriend wants to move in, and we do not want to support him as he earns a good salary, what would be reasonable for him/her to pay in rent?
If the property was put on the market we would be able to get 4500 per month.
We do have quarterly, insurance and ground rent costs of 280, which I have been paying.
My daughter has paid all utilities herself.
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.


Good afternoon. How is ownership between you and your daughter? Do you each own 1/3 of the property? Or, does she own the entire thing, with your investment being a loan to be repaid? Do you have the $1.2 evidenced by a loan or is that represented in ownership? Thanks.
Customer: replied 3 years ago.

The apartment is in our daughters name, we have a documented loan to her of 1.2 million. ( the under standing between our daughter and us, is that 1/3 of the apartment is hers, when we sell, and 2/3 is ours) we never intended for her to pay loan or interest to us. It was the intention that she would take a tenant and that money should go to us, to cover some of the cost for the credit line we took out . Now she is not taking a tenant, and her boyfriend is moving in. So we find ourselves in a different situation, where he now has to pay rent. We are not looking to get the full market rental value of the apartment, as we would like to hep our daughter , as she does not earn so much. we would like to charge him a reasonable rent, which we are unsure of, what would that be?


 

Thanks for your reply. Since they are sharing the place, it is equitable that they each pay their share of the $4500 fair market rent...which is how they would split this if they were not owners. Thus, he should pay $2250 and that should all go to you to pay back you back on the loan per your agreement. It then is up to you whether or not to have her pay her 1/2. But, whether the tenant is her boyfriend or a third party, it's only fair that they pay 1/2 of the fair market rental value plus their share of the utilities. How that then is allocated between you and your daughter as owners is subject to the agreement you have in place...i.e., that you get repaid your loan first.




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