How much to charge for room rental?

[footy1992]

This week I have purchased my first home in OLD REYNELLA (very excited) which I will be moving into in June when settlement eventually comes around!

The house has 171 square m of "living area" and has 3 bedroom (3.5x3.0m approx) , 2 bathroom (large), with two living areas with a small paved backyard. The house was built in 2009 and is in very good condition and constructed to a very high standard with quality fixtures, fittings and tiling etc. It also has a reverse cycle air conditioner and alarm system.

I am looking to rent out a room to one of my friends but have no idea how much to charge for the room. Essentially they would have their own bathroom and bedroom along with access to the rest of the house. We would split the gas, water and electricity bills down the middle so that doesn't need to come into it.

Has anybody done simular that can give me a ball park figure on how much I should charge?

[heater31]

Find out what the market rates for the area are then charge them half of it as you will be renting the other half to yourself.

[Dog_ger]

How old are you 1992?

Living with someone is not that good.

The younger you are the better it may be.

The older you are the less tolerant you become.

Money is not everything.

Goodluck.

Stay at home with your parents and rent the entire house out to a hard working family with 2 kids and a small dog..

Only think of it as an investment property that will appreciate in time and double your investment every 5 years.

[footy1992]

How old are you 1992?

Living with someone is not that good.

The younger you are the better it may be.

The older you are the less tolerant you become.

Money is not everything.

Goodluck.

Stay at home with your parents and rent the entire house out to a hard working family with 2 kids and a small dog..

20, as my highly original username suggests!

The way I see it, its an extra $xxx I can put towards my mortgage per fortnight! I work shift work so lot of the time I wont be home anyway!

I need to live there for at least 6 months to qualify for some free government money (minuscule amount really) but its money I suppose!

[Squids]

Whats the place worth? ball park figure will do.

[footy1992]

The agent has told me the bank valued the property at 440k but the owners needed to sell and i've picked it up for 385K.

How much you believe from the agent is questionable, but id say it worth more than I paid...

[Dog_ger]

If thats the only way to get into the housing market, do it your way and have no regrets.

it's a win win if you can stay there and keep up repayments.

Are you working?

Don't get pregnant just yet.

Goodluck. Go for it.

[footy1992]

If thats the only way to get into the housing market, do it your way and have no regrets.

it's a win win if you can stay there and keep up repayments.

Are you working?

Don't get pregnant just yet.

Goodluck. Go for it.

I work full time so I have no issues with the repayments, the extra cash just helps to repay the loan early and smash some interest off!

Single lad! no chance!

[Squids]

The agent has told me the bank valued the property at 440k but the owners needed to sell and i've picked it up for 385K.

How much you believe from the agent is questionable, but id say it worth more than I paid...

Assuming most of the furniture and cooking utensils and stuff are yours...$150 ish???

[footy1992]

The agent has told me the bank valued the property at 440k but the owners needed to sell and i've picked it up for 385K.

How much you believe from the agent is questionable, but id say it worth more than I paid...

Assuming most of the furniture and cooking utensils and stuff are yours...$150 ish???

Yep, will be all new furniture, apart from their bedroom which they would bring in. New fridge, washing machine, microwave etc.

Thanks!

[dedja]

Maybe just use that room for a brothel ... returns would be higher.

[Dog_ger]

$200 will not make you happy.

$150 sounds reasonable.

Now we talk contracts.

Lawyers must be involved.

We need a legal contract.

You have to seek legal advice.

[Ian]

Single lad! no chance!

you don't need to be married (or long term relationship) to get a woman pregnant 1992

[mighty_tiger_79]

id go with between $!50 - $200

perhaps $170

[Kahuna]

Firstly, Congratulations and good luck in your new home!
I don't think there is any need for lawyers/legals and contracts.
As previously posted, see if you can get an idea of what the going rate in your area is, speak to your mate about it and come to a figure you are both happy with.
Have you and your mate shared houses before?

[Psyber]

A local estate agent's property manager could possibly draw up a rental contract for you for a smaller fee than a lawyer.
They have standard contracts on hand. You could even let them manage it if you wanted to be hand's off.
I was 24 when I bought my first house (in Vale Park). I already had a wife, but no kids.

[Dog_ger]

I'm pregnant.

All contracts don't stand up in court.

[Gozu]

Your mate could get himself a 2 bedroom unit for $200-$250 a week.

I would think $150 a week is a bit cheeky, for a mate I'd just go $100.

[MightyEagles]

I'm pregnant.

All contracts don't stand up in court.

Verbal contracts for example because it's your word against theirs.

[Sturtman]

$200 will not make you happy.

$150 sounds reasonable.

Now we talk contracts.

Lawyers must be involved.

We need a legal contract.

You have to seek legal advice.

I hope you are joking that he needs to have a contract.