Two owners of triplex. One moves out. Other pays rent?
Hi BiggerPockets and fellow investors. I have been BP listener and follower for several years, however this is my first post. Currently in a predicament and not sure how to approach it. I co-own a triplex with a friend. 50/50 on everything. We both have been living in the a unit since we purchased 6 years ago. When we bought put the 20% down payment and have shared 50/50 the costs associated with property.
One owner moves out and the unit gets rented at market rate. If the rental income from two units pay off mortgage and there is a small cash flow. Should the other owner that still lives in one unit pay rent? no rent ? or Discounted rent , meaning a percentage of what it could rent for?
We made the big mistake, as many newbies like us do, to not have an initial property management agreement.
Appreciate any insight from our BP community! Thank you in advance!