Housemate living for free (Portland: fit in, rental, felony)

[rdykilawat]

I live in a rental house with 5 other housemates. Our (friend) who's been here for 4 or 5 years and essentially runs the house. i.e. deals with landlord, pays utilities and collects from housemates. He specifically told 9 current and past housemates that the landlord charges $1500 a month. Implying that he pays the same as everyone else. Turns out rent has only been $1250 and he's been living here for years, rent free. This was never discussed or agreed to and he has bank rolled around $15,000 in rent while we were manipulated into paying his share. Near as i can tell this is Fraud, a Class C Felony. Any opinions, suggestions, or comments would be greatly appreciated.

[Nell Plotts]

I don't think that he has committed fraud in the legal sense but obviously you don't trust him any more. Move out and move on.

[christiner81]

didn't you look at the lease?

[Billy_J]

Sounds to me like he is renting the rooms to you, then in turn paying the rent.

So you are renting from him, he is renting from the landlord. He is making a profit in the process. Same as if the landlord has lower expenses and is making a profit each month from the rent or breaking even. It does not matter what his situation is!

That is just business. I see no problem. Plus that sounds like a very good deal on rent for Portland. But if you don't like it that he is making a profit, move.

[rdykilawat]

The thing is, he's trying to buy a house of his own. Had he come to us with this proposition we likely would have agreed so he could save money towards his down payment. We've all been friends for years and have had no reason to not trust him. The problem is the lie. He specifically mislead us into believing he was paying rent as well. Of course, the friendship is over and everyone will likely be moved out soon. I have no interest or intention of pressing charges or getting him in legal trouble but with 9 VERY angry people, I want to know as much as I can for everyones benefit. If his actions are illegal someone else may choose to pursue it thereby dragging everyone into it.

[rdykilawat]

The original lease had everyone on it. Everyone here knew the rent was $1250. He then told everyone it was increased to $1500. This was a lie. He was just another housemate then and did not 'run' the house. That has only happened in the last couple years.

[Random_Walk]

I really hate to say this, but he's done nothing you can throw him in jail for (at least nothing you can get up enough physical evidence over).

You can try to sue him in small claims court for up to $7500 of it or so - I'm certain that if everyone got together and you can show receipts, coupled with the lease and a statement from the landlord? You can have a judgement levied against him for at least half of it. This also means if he doesn't pay up? Garnish his wages until it's paid off, and you only need to show up at his employer's HR department with the judgement decree, and the employer sends you the checks. Or, you can seize his assets and/or bank account (within reason). Or you can do both. You can even get the local sheriff's office to help you out with it.

The reason I'm saying only go for the $7500 or so is because of the upper limits on small claims. Anything above that upper amount means a full-blown lawsuit, which would end up costing you more than you could ever hope to get back.

[rdykilawat]

Good, that means we're unlikely to have to deal with the legal system or the authorities. I know enough to walk away from him and the house but the backlash from this is getting heated, and I don't know what other will do.

[Minervah]

Originally Posted by rdykilawat

Good, that means we're unlikely to have to deal with the legal system or the authorities. I know enough to walk away from him and the house but the backlash from this is getting heated, and I don't know what other will do.

Why don't you discuss this situation with them? That way you will have some peace of mind as to what if any actions they may be thinking about taking.

[rdykilawat]

Thats the plan, the remaining ex-roomies find out tonight. Now I have a little more info on hand. Hopefully, everybody can say there piece and move on.