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Old 08-09-2006, 05:33 PM   #1 (permalink)
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It's nice not having to pay rent... sort of. (not by living with family)

Here's the deal:

A little over a year ago an accuatance of mine was looking for a roommate, I bit. The place is a < 10 unit complex probally built in the late 60's. The owner is a old (probally 60-70ish) lady who, after searching for property owned by her, I've found out is quite rich ($5+ million in property in the two closest counties alone). She also provides several scholarships to a very expensive college. Sometimes I get the feeling that what I'm about to describe is sort of another scholarship (everyone in the building is in college also).

Through what I thought was an odd series of events, we never signed a contract. We were also suposed to pay a month in advance, but we only paid half. A couple of months into living in the apartment, I noticed she hadn't cashed the check for our deposit or the first two months of rent.

At this point I figured she had just been busy and haden't deposited them yet. I decided to stop sending her checks and just keep the money in my savings account incase she asked for it. Well, that was about a year ago and she's never said anything. At a party the other night, I found out that all the other occupents in the building are in the same boat.

It's been kind of like living at home. She's came into our apartment without even knocking for various reasons about 10 different times. Also, if I wanted, for example, he to change one of those floresant tube lights, I'd have to remind her 10+ times. Therefore usually resort to fixing things myself. I'm sure this is partly due to me not wanting to tick her off.

Anyways, it's nice having the extra income, but it does concern me that she'll come knocking on the door some day asking for money.

What do you guys suggest?
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Old 08-09-2006, 05:44 PM   #2 (permalink)
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Location: Ellay
Pay the rent - if not to her, then into an account that earns respectable interest. That way if she ever comes asking for the money (perhaps it's an accounting oversight that she doesn't notice as she doesn't NEED the money) you'll have it. After all, you must have made some sort of verbal agreement, right? I'm assuming you're not intending to jerk her over for being generous (or lax). Worst case scenario, you'll pay the money that you owe. Best case, you'll move out with a down payment for a house. Seems like a no lose to me.
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Old 08-09-2006, 05:50 PM   #3 (permalink)
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If she's elderly, she might be in the early stages of Alzheimers or dementia. That would explain her forgetting to cash checks, change the lights, etc.
I agree with Uber, don't take advantage per se, pay the full rent into an account. If she or her heirs ask for it, you have it and will have a few bucks extra besides. And trust me, her heirs WILL ask.
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Old 08-09-2006, 06:03 PM   #4 (permalink)
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Quote:
Originally Posted by ngdawg
And trust me, her heirs WILL ask.
Because we never signed a contract, there's little proof I even ever lived here.
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Old 08-09-2006, 06:14 PM   #5 (permalink)
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Um, how about just ask her? "Hey, not that I mind, but what's up with you not cashing my checks?"

Also, not signing a contract isn't necessarily a good thing. For instance, if you go on vacation for a week, and come back and all of your stuff is gone, you have no way to 'prove' that you really did live there. I highly doubt she would do such a thing from your description of the situation, but I'd be a little nervous about the lack of contract.
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Old 08-09-2006, 06:38 PM   #6 (permalink)
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I'd ask her.

It would make me uncomfortable living in a situation with such uncertainty regarding rent, payment, and her motivations.
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Old 08-10-2006, 02:57 AM   #7 (permalink)
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Quote:
Originally Posted by ibis
Because we never signed a contract, there's little proof I even ever lived here.
Yeah, except for witnesses, the post office, your utilities and bills, and those rent checks you DID send. And the years of bad karma that would follow you if you acually tried that excuse.
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Old 08-10-2006, 07:59 AM   #8 (permalink)
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I dunno - the fine upstanding citizen in me says to ask - the financially savvy part of me says to do nothing so you don't upset the balance.

Because the entire building is in the same situation as yourself, I don't think that it is an oversight, I imagine she is just an extraordinarily nice woman.

However, keep in mind that you still may be liable, so I would continue to deposit the money in your savings account until you eventually (though hopefully never ) move.

If there isn't a signed contract, in the eyes of the law (at least here in Wisconsin) you are under a verbal month to month lease. Basically, either party can leave with as long as they give 30 days notice.
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Old 08-10-2006, 08:33 AM   #9 (permalink)
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Think of it as a GREAT way to get yourself to invest. Oftentimes people have a hard time putting money away that they'd ordinarily use, but just convince yourself it's the "rent fund." When it turns out it isn't.. well, you've got a nice little nest egg.

If the whole building is in the same situtation, there's no way I'd tell her.
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Old 08-10-2006, 05:33 PM   #10 (permalink)
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Has she no financial accountant or something who handles those things? You'd think that that much money that she would. If you can find out who, then start asking questions. This could bite you in the butt.

If you end up talking to her and (good case scenario) she says she doesn't need the money. You could tell her that you feel uneasy giving her no compensation for accomodations and ask her if say $100 or some smaller amount would be too much. It may be you'll get off with much lower rent and yet you won't feel like you're filching off a nice, little, old (albeit rich) lady. That's what I'd do probably, anyway.
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Old 08-10-2006, 10:04 PM   #11 (permalink)
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one day everyone in the apartment building will wake up on a bathtub full of ice missing a kidney... and she will have gotten her payment

TANSTAAFL
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Old 08-10-2006, 11:24 PM   #12 (permalink)
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Invest the money.
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Old 08-11-2006, 07:49 AM   #13 (permalink)
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Location: Sarasota
This is a great story.

I can assure you, she knows no one is paying their rent. She wants it that way. You almost hit the nail on the head. She considers it a home away from home for all you guys. She likes being the nice lady and knows no one will say anything bad about her. No doubt there is no mortgage on the property so all it really costs her is the utilities, taxes and insurance evey month. She has the money to pay these and likes the freedom that not having to collect and enforce rents gives her. Most of you cannot understand this attitude now, but as you get older you will. Giving you (her 'kids') the money makes her feel good. She wants you to be responsible and all, but moreso she doesn't want you to do without schooling or other essentials because of her. This is her way of 'paying it forward'. Maybe she is trying to teach you guys a life lesson here. I know I have let people slide on their rent when I knew they honestly didn't have it and were in a tough spot. Life happens. Doesn't mean I haven't been taken advantage of before but bad karma is a terrible thing to have looking over your shoulder.

It is great that you are saving the money in a seperate account and I would continue to do so. I can almost assure you though that she will never come and ask for the money. It would be beneath her. She has money, you do not. She probably feels she would rather give it you guys that pay it to Uncle Sam in taxes.

I would be nice to her and tell her how much you appreciate her helping you out with the rent. Mention that you are saving the money and hope that one day you can help somebody else the same way she is helping you. That will make her day.

Good Luck.
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Old 08-11-2006, 07:59 AM   #14 (permalink)
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^^ Aye, what stuttering D said. That's what I figure it is.
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Old 08-11-2006, 08:15 AM   #15 (permalink)
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Quote:
Originally Posted by JStrider
TANSTAAFL
so very true! but, as it concerns you, i'd just try talking to her about it. if you have to pay, then you have to pay - but if not, then you'll know why and can make a plan of what to do with that money.
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Old 08-16-2006, 04:51 PM   #16 (permalink)
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Marry her.
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Old 08-16-2006, 04:59 PM   #17 (permalink)
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Location: In the middle of the desert.
The right thing to do is ask her about it. If she says she prefers to house starving students as an act of charity, offer to send her favorite charity $100 a month and bank the rest.
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Old 08-22-2006, 01:03 AM   #18 (permalink)
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I agree with those saying you should invest the money. It's a good idea to keep your standard of living as low as you can for as long as you can. Then your money will start paying for itself. There's nothing better than passive income.

I also agree with karma. Find out what the deal is. If nothing else, you'll sleep better at night knowing you did.
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Old 08-22-2006, 10:50 AM   #19 (permalink)
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the right thing to do is ask. that way, you know for sure.
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Old 08-22-2006, 10:58 AM   #20 (permalink)
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I wouldn't do nothing. I would save the money like you are doing, just incase she pulls a lawsuit on you, and unless I really need to, I wouldn't move out....Ever.
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Old 08-22-2006, 11:14 AM   #21 (permalink)
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Location: Michigan
It's a TRAP!

Not really, but I would probably speak to her about the rent situation. The conversation will be a bit awkward and hopefully she is a nice lady that doesn't think people should pay rent, but she might have some type of dementia and is losing her mind.
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