House hack - lease terms with friends

[Andrew S.]

Good morning!

I recently moved in my first house hack in a 125 yr old house that I gutted and 5% finished before moving in.  I moved in with my old roommates - a couple with a dog.  They are using a small bedroom with a small closet relative to "normal" houses.  Rental comps of the area are $1000 min, $1200 average, $1400 high for a 3 bed/ 1 bath. 

I appreciate their willingness to live in a partial construction zone for a month? while I finish up the other half of the duplex and the 5% on our side.  I'm trying to balance reasonable/ fair rent prices and give them a little bit of a friend discount.

I originally offered $600 (+$25 for dog) rent price for them to share a room and share a spare bedroom with me for storage.  50% split use of the house between myself and them (which the couple combined realistically probably uses more than 50% of the house) They counter offered this first month for $500 based on the current construction status of the house.  Anyone have advice in this type of situation?

I maybe shot myself in the foot with explaining my rental price analysis and tried to have open conversations about this? I value them as friends and them willing to live with me while finishing up the place. 

If anyone else has learnings from house hacking with friends - I'll appreciate any advice.

Thanks!