Guy Learns That His Girlfriend Is A Landlord, Demands Half Of Her Rental Income (2024)

FAQs

Who should pay rent in a relationship? ›

Split Rent 50/50

The obvious way to split rent is for each partner to pay exactly half of the bill each month. This can keep it simple, with each person having an even share in housing costs. For example, if you find an apartment that costs $1,800 per month, each partner would contribute $900.

Being a landlord is not technically considered an occupation by the Bureau of Labor Statistics. And though most people may agree that being a property manager or a real estate agent is a job, many landlords are neither property managers nor real estate agents.

'It's almost not fair to split finances 50-50'

For example, one partner may be saddled with student loan or credit card debt while the other partner is not. The latter may have the financial strength to carry rental or mortgage expenses so the other person can focus on paying down their liabilities, said Daigle.

While rental income is almost always considered to be passive, there are a few possible exceptions to the rule. The IRS may treat income from rental property as active if: The rental property owner is classified as a real estate professional.

The core ethical issue is the idea of someone profiting off of someone else's work to build their own investments, as well as commodifying something that is a human need. To rent out a property in an ethical manner, the landlord must not profit off their tenant.

For California, rental income and losses are always considered a passive activity. Visit our Instructions for Form FTB 3801, Passive Activity Loss Limitations for more information.

You need to decide what you believe is fair, and your boyfriend will decide how much he believes you should pay (no more than half the mortgage payment, in my view). And you will both act accordingly. No one is forcing the other's hand. 'If you bought a home and wanted him to pay rent, I would tell him the same thing.

It is entirely up to the pair and how they wish to handle money in their relationship. When determining who pays in a partnership, communication is important. Couples must have an open and honest discussion about their financial condition, their desires, and their expectations.

California is a community-property state, and any assets acquired during the marriage belong to both spouses equally. In 1985, a landmark case—Marriage of Watts (1985) 171 Cal. App. 3d 366—set a precedent that is followed in many California divorce cases.

Couples can discuss if they should or shouldn't split payment of rent and bills evenly or based on a percentage of income. If one partner earns more money, they might cover the entirety of rent or the mortgage, while the other partner pays for groceries and utilities.