Thoughts on lodger.

Hi,

currently living in a 3 bed house which we pay $640/week for. We have 2 boarders in fully furnished rooms, one paying $220/week, the other one who was previously paying $200/week. Our outgoings (electricity, water and gas) are around $4,500/year - this is mainly due to the electricity all being billed as peak consumption due to lack of smart meter (have scheduled a date to get one installed so do hope the cost comes down in the near future).

With the increase in electricity prices as of 1 July, I decided to increase rent of the boarder paying $200 by an extra $20 week to cover outgoings.

I sent this email:

"Hi XXX,

As of 1 July 2017, electricity prices were increased by 20%.

Our last electricity bill was just under $700 for 3 months. When we also add in gas and water costs, the outgoing expenses are around $4,500 a year ($86/week). This is before we factor in a 20% increase for electricity prices that came into effect on 1 July 2017.

At $200/week, your rent only covers the cost of the room and we have been shouldering all outgoing expenses.

Given the 20% increase in electricity prices we can no longer afford to shoulder all these expenses. My partner and I did not get a pay rise for inflation on 1 July, so we are forced to pass some of these costs on. That is why from Monday 14 August 2017 your rent will now be $220/week.

I have attached a tenant ledger showing the rent we pay and the water bills. I'm showing this to you to try and be as transparent as possible with the costs. We are not making money off you, we are merely trying to apportion the costs of the house in a fair and equitable way. I think $20/week for electricity and gas is fair given you cook nearly every day.

The tenant ledger shows we pay $640/week for the house. I will also forward you a copy of our last electricity bill."

I attached the tenant ledger showing we pay $640/week and sent a copy of the latest electricity bill which was just under $700.

I see it as my partner and I paying $240/week, the boarders pay $200/week each = $640. The $240 we pay is fair given we have our own bathroom while theirs is shared. All other common area is shared and accessible by everyone in the house.

The boarders pay $20/week each to outgoings, my partner and I pay $23/week each to outgoings which is probably fair given I assume we use more electricity than them.


Anyway, I sent the email to the boarder who came home that day and told my partner it was okay.

Then 2 days ago she was walking past us and told my partner to delete her email address. She only gave the email address to my partner, not for her to share with me. My partner said okay, fair enough...

Then she started complaining that the window and the light (one light globe out of four and she has two lamps in the room provided by us) had not been fixed, it has been over a month (we had the agent there that morning to inspect the light before he would send the electrician to fix it). So we explained to her that this is an older house, it's not great, but that's why it's cheap... the owner will not fix the window... we then explained that the agent was there to check the repair on behalf of the owner, then he would send an electrician. I don't think she understands as she was asking us who the agent was.

Then she complained that the $20 increase was not fair because we did not increase the other boarder, to which we said you now both pay the same, we didn't increase yours earlier because you had just moved in... she then said it's not fair that he has a bigger room than me. We then told her, if she is not happy, she can leave... we don't want someone who is unhappy to stay here.

We were both caught completely off-guard by this and may have reacted a little emotionally. Sent her a message on Sunday asking if she would be available after to work to chat as we think there may be some misunderstanding and we want to try and clear the air. No response.

Sent another message this morning asking if she will be available to chat tonight. No response as of yet. But, very much inclined to think she is avoiding us as she came home late last night and we didn't see her this morning (usually we do).

Initially I was wanting to have a discussion and try to explain things so she can understand. But, now my thought is to simply ask her to leave. I don't want to live with a sullen person and someone I can't communicate with and causes all this drama.

 

Considering you 'usually' see her every morning.. I think a personal talk before an email would have been better. Then send an email confirming the talk.

The email you wrote, you're trying to justify yourself way too much.. "I think $20/week for electricity and gas is fair given you cook nearly every day" probably wasn't needed, and may be taken as a complaint. I cook every day too.. normal part of life.

What date did you send the email, and how much notice did you give her before her rates were raised?

It doesn't matter to her if someone else is paying different rates. None of her business. You set her rates, and she either pays it or doesn't.

Also, if you're going to be using the 'excuse' to raise her rents as due to electricity price rises, and then in another sentence tell her you're not making money off her.. perhaps do the maths first? $700/qtr / 4 people = $175pp / qtr. $175 x 1.2 (20% increase) = $210/qtr. Then divided by 3 months = $70/mth. Yet you want $86.66 per month from her ($20/wk).

Not a big deal.. but something to keep in mind.
Perhaps less justification and numbers next time, and basic talk that rent is going up to be inline with expenses.

 

Ah - the joys of sharing a house......and subletting...?
Maybe you could have broken the news personally over a glass or two of wine...

But seriously, if they are upset about $20 I would be looking to turnover as the lodgers/co-sharers may have gone a bit stale.
Happens like that.....
Good luck

 

Yeah, maybe I could have approached it better. Thanks.

I think we gave her one week notice of the increase, but she said in future give her 2 weeks. We said okay, fair enough. I mean, I'm happy to give her an extra week before she pays an extra $20 if that makes her happy, I'm not that fussed.

 

Could turn into a real mess something like this ,apart from the insurance side when you sublet rooms out ..

 

I think that would be a good idea. My PM's give my tenants 3 MONTHS notice minimum before rent increases.

 

Probably a little different since this was an electricity increase I passed on.

 

Subletting. I wouldn't put this on a public forum unless your landlord is ok about it.

 

Why not? Do you think my landlord will be able to identify me?

 

One weeks notice is far too short. So is two weeks.

I agree with the other posters - why would you bring this up in an email - like the housemate is a stranger living in another city. Very poor form.

 

Why not do what most share houses do and split the bills equally?

 

Has your sub-letting tenant paid a bond?

And what if they invite guests onto the property that accidently have an injury after showing off on a skateboard?

Is that your issue, or will you be forwarding all the paperwork on to your landlord?

It sounds a little complicated, when it gets complicated.