How Much Would You Charge Your Adult Children and Grandchildren to Move In?

When adult children and their families decide to move in with their parents, the financial implications can be substantial. This decision often arises from various situations, including financial strain, joblessness, or personal crises. The question then becomes: how much, if anything, should you charge for this cohabitation?

Personal Experiences and Circumstances

One parent, for instance, believes in charging their adult child and their family monthly rent to offset the cost of living. According to this parent, their son, who is chronically unemployed and a drug addict, would normally pay $400 per month for rent and utilities. With his girlfriend and four cats moving in, the rent might rise to $700. This estimate does not include food expenses but accounts for other household supplies.

However, many people charge nothing if the circumstance is dire. If, for example, an adult child is stuck in an abusive relationship and seeks shelter with their parent, the rent is waived. Instead, the parent sees cohabitation as a relief to the child and their young family. If, on the other hand, an adult child is moving in due to irresponsibility, strict rent payments might be required, with the funds allocated to help the family become more independent.

Variables in Charging Adult Children

Another parent, Hailey, chose not to charge her daughter and son-in-law any rent. According to her, they occasionally chip in with money for groceries or utilities. Hailey believes that given the lack of request to live with her, charging rent would not be ethical.

Common sense dictates considering the circumstances before deciding on a charging policy. If the residence is to be temporary, expenses incurred—such as utilities and food—should be covered. It is also crucial to define the duration of cohabitation based on the financial situation of the adult child. Setting a timeline of at least three months but no longer than two years can be realistic, especially in challenging financial situations.

The Financial Burden and Space Considerations

Finding a balance is key. For example, a parent with limited spare space might have to adjust their living arrangements to accommodate the family. Utility and food costs, along with a possible initial setup fee for additional supplies, would be reasonable charges.

Space availability also plays a crucial role in determining the financial aspects. If there is not much extra space, extra room taken up by the family could result in higher charges to cover the additional utilities and supplies needed.

Ultimately, the decision on charging adult children and grandchildren for cohabitation should be based on a combination of their financial circumstances, the duration of the stay, and the availability of space in your home. Each family's situation is unique, and what works for one might not work for another. For a comprehensive approach, consider setting up a fair and fairytale agreement that addresses all the necessary aspects.