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15 years ago I bought a rowhouse with a friend. The plan was that I would live there, paying rent of $800 per month. That was theoretically split between us ($400) each and then I paid several hundred more to meet the full mortgage payment. I never actually paid him the $400, for that was his portion of the mortgage payment. I paid the $800 plus several more to meet the full mortgage. I have paid all repairs and upkeep costs alone. Some years ago he began paying an extra $100 on the mortgage. (Taxes and Insurance go up.)
We bought the property jointly, in both our names, and paid equally for everything. We made no side agreements about buying each other out, rent payment, or anything else. Just two people and a straight purchase. We split the taxes on our IRS returns.Now he wants to increase my rental payment to fair market value, which would be about $1450 per month. I do not think this is fair and disagree.How should I safeguard myself? Can he legally cause this to happen somehow?

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Portland, Oregon

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Last tax/insurance increase was over $400 per mo. He now pays $200 and I pay $1000. He resents having to pay anything and thinks he should be making a profit. I have insisted he now needs to start splitting upkeep. I tried to buy him out at a fair price, accordingly to the banker, but he would not accept. He just bought a million dollar condo and wants to increase his cash flow on my back. We have discussed this repeatedly and can't agree. He wants to see an attorney, who he thinks will tell me I should pay more. We will go to Court before I will agree to his plan. My banker tells me he is taking advantage of me and actually is really due less than half the house value, because I have paid much more of the mortgage and upkeep. The house has doubled in value since we bought it, and is an excellent investment, which is all he wanted when we bought it.

Customer (name blocked for privacy)

Status: Closed Value: $30

Just so I can be sure to answer your question as fully and correctly as possible I need a bit more information about the situation.

First, did you put anything in writing about the agreement between the two of you?

Second, are both your names listed on both the deed to the house and the mortgage?

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We put nothing in writing about the agreement between the two of us, except for the following:
Each of us put in our wills that the survivor (between the two of us) would have the legal right to either continue living in the house, or rent it, until we both were dead. When both deaths occurred, then and only then could our heirs inherit the property.
Both of our names are listed on the deed and the mortgage.

OK. In that case you have every right to the property as he does because you both have equal ownership of the property in both title and mortgage.

Your only responsibility is to fulfill your payment of half of the mortgage payments (since the mortgage is in both your names). The simple fact that you live on the property doesn't make you legally liable for additional payments.

He basically appears to be treating this like a tenant/landlord relationship by requesting you pay a fair market value rent.

This is incorrect on his part. Because you are equal share owners of the property you have just as much right to set the rent paid as he does.

It's as you said, this was an investment, so any profits he could make would have to come in one of three ways.

Either you agree with him to rent the property out to a third party.

Or you both agree at some point to sell the property.

Or he allows you to buy him out at a fair price.

I'd probably advise that the two of you seek a mediator to try and help you discuss the best solution to the problem for both parties. In fact, this is likely what the courts would end up recommending to help work through these problems.

A mediator could listen to both sides and hopefully present a suggestion favorable to both of you. In this case it would seem that having you buy him out of the property at a reasonable price would likely be the best solution.

Either way, he does not have the legal right to demand more money from you. You are already paying a larger share of the mortgage payments/upkeep which offsets the fact that you use the property more often. I'm confident that he won't find grounds to force you into any higher payments and his only chance for immediate profit off the home will be ruled to be accepting a reasonable buy-out offer from you.

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