$170/month is insanely cheap. How did you arrive at that number? Consider the t/s portion of your utilities, mortgage, etc. EVERYTHING. Take THAT number and divide by 2. That would be a fair place to start. Add to that half of the wear and tear on your home and other expenses that come from being the homeowner. I think you'll find that your kids taking up two spaces comes to LESS than what she OUGHT to be paying for rent.

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