My wife is joining a friend (i'll call "partner") in starting up a new takeaway business. The partner has already started moving things along, licences, equipment, website etc before she asked my wife to join. They plan on using the partners house as a base for the business to make the food and deliver from. Of course bills,food, expenses etc will be deducted from profits. However the partner wants to charge an extra rent for using her house. We are not sure if this is cheeky or normal practice.
I know if renting a business premises then they would have to pay rent but since they are using the house (which partner pays mortgage on), should my wife be paying a rent to her for their joint business? To be equal both would have to contribute to the rent but the rent is going into partners pocket!
Any advice appreciated