Should I pay rent on top of my mortgage?

Jodi asks:
(updated on Thursday, April 16th 2009)

I have recently decided to build a house with a family member, we have bought the land and are in the process of having the plans drawn up. It was decided that I would live in the house (as they already live in another house they own) and would pay the general bills eg power/water/phone but rates etc be split. Is it then normal procedure that I would pay rent on top of half the mortgage? If so, would it be half of what rent would be if letting out to strangers? What is the normal procedure?

Our Experts Answer:

The Residential Tenancies Act 1986 (the Act) applies only to the relationship between a tenant and landlord. It does not cover the relationship between property owners, or situations where one of the co-owners lives in the property (unless the parties contract back into the Act). I suggest you seek independent legal advice from your local community law centre concerning your situation. To discuss your situation further, or for advice and information about contracting back into the Act, you can contact the Department of Building and Housing on 0800 TENANCY (0800 836 262).

The Department of Building and Housing provides information and guidance on building law and compliance, services including weathertight homes, and advice for tenants and landlords.




Heartland Bank - Online 1.99
The Co-operative Bank - First Home Special 2.09
HSBC Special 2.25
ICBC 2.25
HSBC Premier 2.25
Kainga Ora - First Home Buyer Special 2.25
AIA 2.29
TSB Special 2.29
The Co-operative Bank - Owner Occ 2.29
SBS Bank Special 2.29
Westpac Special 2.29
Heartland Bank - Online 2.35
ICBC 2.35
HSBC Premier 2.35
TSB Special 2.49
SBS Bank Special 2.49
The Co-operative Bank - Owner Occ 2.59
BNZ - Classic 2.59
ASB Bank 2.59
AIA 2.59
China Construction Bank Special 2.65
Kiwibank Special 2.65
HSBC Premier 2.89
TSB Special 2.99
AIA 2.99
Westpac Special 2.99
ICBC 2.99
ASB Bank 2.99
China Construction Bank Special 2.99
BNZ - Classic 2.99
SBS Bank Special 3.19
Kiwibank Special 3.19
The Co-operative Bank - Owner Occ 3.19
Heartland Bank - Online 2.50
Resimac 3.39
Kiwibank - Offset 3.40
Kiwibank Special 3.40
Kiwibank 3.40
Bluestone 3.49
Select Home Loans 3.49
ICBC 3.69
The Co-operative Bank - Standard 4.40
The Co-operative Bank - Owner Occ 4.40
Kainga Ora 4.43