Co Ownership rental Disagreement

T

Tim Horton

Guest
I have purchased a house with a friend June 2006. We are nearly 50% of the value of the house in neg equity so selling is not an option.
One room we have rented out. I live in one room. The third room is empty as my friend moved out shortly after we purchased.
She does not want to live in the house. I do want to say living there.
She now wants to rent this room and keep the money herself.
I maintain that any rental income from the renting of any room/rooms in the house should be split 50/50 with remaining balance to be paid in equal amount by both of us.
This is the situation with the main bedroom.
How ever there are a number of different scenarios to this.
We are getting TRS so if the rental of the two rooms exceeds €10,000 we loose our TRS
I do not want to rent the whole house as I have been living there since it was purchased and again the TRS would be an issue here.
We had purchased the house to live together and now I am living with one stranger and my friend is looking to move another stranger in to the house.
She does not intend that I will be compensated in any way for the second person living in a house that I own 50/50 with her and that I have furnished 50/50 with her.
What should we do? Neither of us should profit or loose more than the other.
 
My five pence worth would be that your friend can do what she wants with her room as long as she pays her half of the mortgage
 
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In my opinion she does not OWN the room. She co-owns the whole house with Tim. (Meaning they BOTH own the WHOLE house.)

I am in a similar situation in a different country...still unresolved. My co-owner would like to rent "his" room too. And he even went as far as saying that he does not need any approval of who the renter would be from me. In my view this is not only disrespectful but I also think it cannot be legal as the renter would not just use the room he claims his.. As a co-owner I need to approve who I let to rent a room in my own house. Aren't I?
 
No.

We also do not have a co-owner's agreement on who owns which portion of the house.
 
Hi there. It's messy that you both have partial control over the day-to-day management of the house when it only really effects you (as the person who is living there). I've heard of a solution that worked pretty well in a similar situation.

1. You view the two of you as co-landlords, jointly responsible for the mortgage, repairs, expenses etc. and set up a joint a/c for this.
2. You yourself agree to "rent" the entire house (all rooms) at a discount (say 20%) to compensate you for managing the place in situ and freeing your partner from anxiety about damage, void periods, maintenance etc. This money goes into the joint a/c and is put towards the mortgage. Any shortfall is to be made up 50/50 between the two partners.
3. You are free to sublet the rooms as you wish and put this towrds the "rent" you lodge into the joint a/c. If you are pro-active, you may even make a small profit to compensate you for your time and management.

It achieves several things. You have complete control over who lives with you. Your partner doesn't have to involve herself in the house regularly. The mortgage gets covered. Anyways (even if my advice isn't of use) I hope it pans out for you!
 
Well...we are actually already co-landlords as we have other rooms in the house that we rent out (we benefit 50%-50% and share costs 50%-50%). We also have a joint a/c.

I am sorry but I don't understand your second point entirely. Can you explain?

PS: I wish to live in the house.
 
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