A common question that many people have is “How Much Should I Pay my Parents for Rent?”
Many parents have set up a system where they are charging their children for rent to help pay the mortgage for the house and it is understandable because it prepares the child for what is to come once they move out.
If the time comes where your parents have asked you to pay rent, you will have to take steps to figure out how much you should pay them.
Factors to Determine
Do You Have a Job?
The first factor to think about is do you have a source of income to actually pay rent.
If you don’t have a job or any source of income coming in, you will need to start finding one. The time where parents usually start asking for rent is when their children turn 18 and have graduated high school.
It is also the time where an 18-year-old should have a job and starting to make an income so if you are at that level but still have no job, it is time to start applying and bringing in some type of income.
Are they Asking or do You Want to Contribute?
The second factor would be if they are asking you or you want to contribute to help.
This matters because many times, parents ask their kids to help pay even though they might not need the help and they end up collecting the money to “mature them”. If that is the case, you will need to do some calculations on how much you should actually pay so you don’t get take advantage of.
If your parents are actually struggling to pay and are really in need of your help, that would be a different situation because this genuine request will help the family out and not just take advantage of you.
If you want to contribute even though they have not asked, still do research on how much you should pay as a person living in the property.
How Much Should you Pay your Parents for Rent
When first determining how much you should pay rent, you will have some calculations to do so it can be fair.
1. Ask your Parents how Much is the Mortgage
The first question to ask your parents would be how much is the mortgage payments of the house. If your parents are renting, figure out how much rent they are paying each month.
Mortgage: The payments your parents make to the bank each month to pay off the house.
This is important because you will need it to calculate how much you should pay them. If they don’t want to tell you how much they are paying and are just asking for an amount, you can search up the value of the house and the estimated mortgage payment on Zillow.com by typing in your address.
This will give you an indication if they are asking for the right amount or not.
Many children get pressured to pay an amount that is way too high and this causes stress so to save yourself from that, make sure you do the proper research to see how much you should actually pay.
2. Calculate How much you Should Pay
Once you find out what the number is, you will then divide that number by how many people are living at home that also have jobs that are bringing in income. This will determine how much money you should pay rent.
For example: Mortgage is $1000/mo.
There are 4 people that work who live in the house.
$1000 ÷ 4 = $250
So out of 4 people living at home, each person should be paying $250 as contribution to the rent.
3. Set up a Payment Plan
Once you figure out how much you should pay, you will then set up a payment plan with your parents.
This will ensure that there is a set time and day where you are expected to pay them. It can be monthly or bi-weekly so you can make the decision with them when you are setting up the plan.
As much as it might not feel good to pay rent to your parents, it helps grow you as an individual. It will be a stepping stone into adulthood and it will give you a taste of how bills will look like once you are on your own.
A great thing about paying rent is that it now gives you an opportunity to have more freedom with your self.
Since you are responsible for paying for yourself, you will also be responsible for the decisions you will be making so that means you can make your own decisions without someone telling you that you can’t because you are living under “their roof.”
That is one thing you can use to your advantage if you are forced to pay rent.
If they are Putting you in an Unfair Position
If you are being pressured to pay more than you feel like you should, it is time to stand up for yourself and demand that it should be lower. Many children are in this uncomfortable situation because they are now faced with the possibility of being kicked out of the home they grew up in just because their parents want to take advantage.
Let them know that it is not fair and you should not be put through this stress even if they are trying to “mature you.”
If they are still putting pressure on you, it might be time to think about moving out. As much as that might sound horrifying, it will save you the stress from dealing with unfair payments. A way you can figure out how you can move out would be to first see if your other friends are planning to move out also.
If you can’t find anyone to move out with, look online and find roommates that are also finding a place to move out and join them in sharing a spot that is affordable. It will be a hard thing to do because you will be moving away from family and leaving the place you called home but your mental health is more important and should be protected at all costs. There are also many benefits of moving out of your parent’s house.
You threatening to move out might make them reconsider being so harsh and the thought of their child leaving over money can soften their stance.
Once a child turns 18 and graduates high school, many parents start asking them to pay rent for living at home. It is a way to introduce them to the real world and to make them mature up so they can be ready to be on their own.
When trying to figure out how much rent you should pay your parents, you need to figure out some calculations to know exactly how much you should be paying them fairly. The first step is to have a job or a source of income, the second step is to calculate the payments that you would owe and the last would be to set up a payment plan.
With that being said, these are the steps to take when you are going to start paying your parents rent.