“How Much Rent Can I Legally Charge my Mother-in-Law?”
Even before the outbreak of COVID-19 last March, I was interacting with an increasing number of clients considering multi-generational living arrangements. According to an article last week in the Wall Street Journal, the incidence of these multi-generational living arrangements, defined as multiple adult generations living together in one primary residence, has actually increased during the pandemic. According to the Journal, 15% of residential purchases made between April and June of 2020 were for multi-generational living arrangements. In 2018, a record 64 million people lived in multi-generational households, which account for 20% of the population. As home values continue to increase, and many older Americans seek at-home end-of-life care, this trend will only continue.
In this month’s update, I suggest a few important questions to ask mom and dad (the “Senior Gen”), as well as the younger generation (“Junior Gen”), who are considering such multi-generational living arrangements. These questions are as follows: