Grandma lives with her caregiver, in the caregiver's home - how much should the caregiver be paid?

This whole set up stinks to high heaven! Don't be surprised down the road - if you continue with this - that the caregiver somehow winds up owning grannies house. Just because your POA it doesn't mean Grannie can't still sign things herself - you have described someone who would not be deemed mentally incompetent. If it were me, I'd get Grannie into AL or back into her own home with a contracted professional caregiving agency. For sure I would get the brother out of grannies house - as it is, if he resists, you will likely have to go through legal eviction proceedings. This situation is a disaster waiting to happen.

I don't at all understand why the caregiver's brother is living in your GM's house, but telling you he needs to live there rent-free raises a lot of red flags. I think I would ask him to leave and find a real tenant who isn't related to the caregiver.

How did this evolve in the first place that he's living in your GM's house?

I can't help wondering if your GM is being manipulated by the caregiver and you need to step in.

As to the $1700, it depends on what she does for your GM. I assume you don't have a contract, so I would also suggest that you either find one online or see an elder law attorney to have one prepared.

I have the feeling that this caregiver is a manipulator and advising her son needs free rent is only the beginning.

Based on nothing except the info you've given, Rusasa...

I say the pay sounds competitive and fair and the caregiver's bro living at grandmother's house is a bad idea. It shouldn't be a "package deal." Caregiver's bro can pay fair market rent for the place or (preferably) you rent to someone else.

If grandmother can't go back there to live on her own, why not look at selling it?

Or another option is to find a caregiver willing to stay with grandma in her own home.

Any way you make the deal, the important thing is trust. If you made a deal and now caregiver person is changing the deal and asking for substantially more compensation, that's a deal-breaker and a trust-breaker. Isn't it?

It is not so strange to have a client live in the caregiver's home. AC or somewhere online actually had a space for that scenario on a blank caregiver contract one could use for that purpose.
The rest, with the caregiver's family member living in Grandma's home sounds bogus, and expenses, billing, and contracts need to be clear-as financial poa you need to approve. I would make it a clear-cut arrangement wherein Grandma's home should be sold to pay for her care. And a background check on these people 'helping' should be done, starting with finding a dba or business license on file.

Still, stranger deals have been made. Only scam artists, however, demand more and more money after the move has been made. imo. imo. imo.
Could be the most kind hearted caregiver you will ever find. It would be a miracle if her family member was keeping up Grandma's house equally for free room and board, but it is more likely you will find many elder's homes have come under the ownership over the years in these people's names, or their realtor's, with proceeds of home sales and life insurance policies ending up on their side of the ledger.

Did they not know about you???? POA

This does sound strange.

Do you have a written contract with this woman?

This sounds like a very strange situation, surely money was discussed before your grandmother moved in? And why in the world does this person have the medical POA? And what happens in the future when grandmother needs more care? The $1700 could be a reasonable amount or totally out of line depending on the cost of housing where you live.

The $1700 per month for room and board sounds reasonable if the care is very limited. Now if Grandmother needs more care, such a mobility issue and/or memory issues, then a caregiver should be paid more than $57 per day. Curious, how old is your Grandmother?

My question, why is the caregiver's brother living in Grandmother's house? Something doesn't sound right.

Seems rather iffy, especially with the brother living in your grandmothers house.
I would be real cautious

She is not a family member. Grandma doesn't need a lot of care, just attention/companionship/entertainment and making sure she eats, drinks enough water, and takes her pills. I'm not sure what she has charged others in the past, it's a small community and I think she was making "deals" with them as well. I have the financial POA, but she has the medial POA.

Is this person a family member? It would depend on how much care your grandmother needs, it should be easy enough to compare rates of assisted living or nursing home care, or agency caregivers. You say they take care of the elderly, implying they have done this before or have others in their care, what do/did they charge those people? Who has POA?