How to make up rent difference

[Anonymous]

Op, if she is making 50k a month she can’t afford to rent a 2000 a month place. She should rent a studio or get a roommate or get a room in a group house instead.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why would government cover for her lifestyle choices.

The government covers a lot of different peoples poor lifestyle choices. She at least is hard-working. She will be working full-time during the day and then going to school in the evenings. It’s only a one bedroom. I’ve considered trading it up for a two bedroom in the same neighborhood, but I think it will take me a while to get that going.

She can have a roommate if she can’t afford it (one person takes the living room.). That’s what I did when I had a low paying but prestigious job out of college. There’s no govt credit that is going to subsidize you as a landlord for her decisions (the progressive nature of our tax code should help her some.)

I've said this over and over again on DCUM, but there is no such thing as a low-paying, prestigious job. Hill staffer? Nope. Entry-level journalist for some left-wing rag? Sorry. Postdoc job at NIH? Sorry again. I know you like to think you've had a prestigious life and look down at the finance bro making $700K, but unfortunately, his job *is* prestigious.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why would government cover for her lifestyle choices.

The government covers a lot of different peoples poor lifestyle choices. She at least is hard-working. She will be working full-time during the day and then going to school in the evenings. It’s only a one bedroom. I’ve considered trading it up for a two bedroom in the same neighborhood, but I think it will take me a while to get that going.

What is the market rate for a typical 1 bedroom apartment in the area?

Can't she reduce her other expenses so she can pay full rent? I certainly did when I was in college and working full time--cut down to 2 meals per day (one of which is beans and rice,) no cable/netflix/hulu. Handwash/hang dry clothes instead of going to the laundromat, etc.

That’s not going to make up $600/month.


OP this isn’t going to work unless she also gets a PT job and/or roommate. But it sounds like she already has a full schedule.

I guarantee you she is spending more than $600 on food each month-avocado toast and lattes.

SMH. You "guarantee" it huh?
I don't know what's sillier, this or the yammering about "muh tax dollars".

[Anonymous]

Anonymous wrote:I’d love to rent my relative my rental condo. However it rents for $2000, all of which I need in order to cover my expenses. She could only afford to pay $1400. She has a good job but it’s low pay like 50k think entry-level NGO type. Are there any programs that would be available to her to help close the gap? Trying to brainstorm as best I can, she wouldn’t need the parking space so I could try to rent that out separately, but I doubt it would rent very well due to its location. TIA!

Landlord here, and I connect with many other landlords, but in-person and online/forums, general consensus is to not rent to relatives. Might seem like a generous thing to do when all parties agree, but when you don't you risk your (good) relationship. And when you're starting out with not able to pay the market (?) rent of $2k, it'll go downhill from day one. Please help find your relative find something suitable with their budget, you'll both be better off in the long run.

[Anonymous]

OP have you considered taking on a second job so you can help your family member?

[Anonymous]

Her income is too high to qualify for any government assistance outside an IZ unit, but that won’t help you any.

[Anonymous]

Honestly you are not doing her a favor by charging her 1400. She needs to learn that if she wants to live a nice lifestyle, she needs to earn a better living

[Anonymous]

She isn't going to be homeless if she didn't rent your property. She can afford housing, just not the housing of her choice. That's how most of us feel, even ones in a SFH would rather be in a bit bigger and nicer place.

[Anonymous]

Just fyi that there are tax consequences to renting your place out non market rate, and be aware of them if you make this choose

[Anonymous]

What are the pros and cons of leading to a relative below market price? Personal? Legal? Tax? etc. I'm thinking of letting my brother rent my condo in Shaw. I've had issues with tenants in past and i know he'll take good care of the place. He is a paralegal but enrolling as a law student and with all the student debt, cant pay market rate.

He'll manage the place so that cuts down on property management's cut and I'm willing to accept a loss. Its paid off so my expenses are low though income is going towards my saving for getting a better place in a nicer location when i move back.

[Anonymous]

Anonymous wrote:Just fyi that there are tax consequences to renting your place out non market rate, and be aware of them if you make this choose

If market rate is $2000 and you pay a property manager to manage you will only be getting something like $1800 + you must pay the property manager 1 months rent so that puts the rent at about $1600. Are you telling me there's tax consequences between renting an apartment for $1400 versus renting it for $1600?

[Anonymous]

She could just pay you cash instead of declaring the rental income and paying tax on it. $2000 taxed is probably not that much more than $1400 untaxed depending on your tax bracket.
You’d be breaking the law, but i don’t know if there’s a legal way to do it. Like if she’s your roommate and contributes to groceries and utilizes for $1400 a month is that legal?

[Anonymous]

My aunt bartered her guest suit with a nephew for tutoring and coaching her kids. I don't see why government would have a say in it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why would government cover for her lifestyle choices.

The government covers a lot of different peoples poor lifestyle choices. She at least is hard-working. She will be working full-time during the day and then going to school in the evenings. It’s only a one bedroom. I’ve considered trading it up for a two bedroom in the same neighborhood, but I think it will take me a while to get that going.

She can have a roommate if she can’t afford it (one person takes the living room.). That’s what I did when I had a low paying but prestigious job out of college. There’s no govt credit that is going to subsidize you as a landlord for her decisions (the progressive nature of our tax code should help her some.)

I've said this over and over again on DCUM, but there is no such thing as a low-paying, prestigious job. Hill staffer? Nope. Entry-level journalist for some left-wing rag? Sorry. Postdoc job at NIH? Sorry again. I know you like to think you've had a prestigious life and look down at the finance bro making $700K, but unfortunately, his job *is* prestigious.

I disagree. Monica Lewinsky started as a unpaid White House intern yet later landed a well paying endorsement explaining how swallowing only 3 ounces a day opened many doors for her.

[Anonymous]

Anonymous wrote:Why would government cover for her lifestyle choices.

Ya’ll don’t take the mortgage tax deduction?