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Might it be possible for you to consider the difference between "market" rent and what you are charging as a gift to the family? As long as it doesn't kick your gifting over ther $12,000 per person per year limit for gift tax exclusion, I'd think you could consider the discount as a gift. Tax pros?

This type of "gift" could be income for the landlord. It is not a good idea.

As other have said, renting two rooms is not comparable to renting a townhouse. If you want comparable rents, look at the going rates for renting a room. It sounds like $450 might be a little low, but not much.

Unless they are providing services for a discount in rent, then the best option is have a rental contract that specifies the rent. Don't complicate the situation when it is unnecessary. They are not employees which are being provided a residence as part of their compensation.

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