When me and my Husband shifted out to our own house, MIL says she wants to shift in with us. We had a room set aside for her. FYI, we used to all stay at my SIL's hse. My MIL's room has her own bed, wardrobe, TV and side table. BUT she doesn't stay with us like what she said. I feel she takes our room for granted. she only comes and stay for a night or 2 every week. The rest of the week she stays at my SIL's house because she is soooooo attached to my SIL's Son. The room like wasted. I could have renovated it as my children's play room and have a sofa bed for her if she comes for a stayover. I have 2 toddlers. My elder one sleeps with hubby n me. Younger one sleeps with my helper. I have plans for my kids to have their own room. How do I hint to her that we need that room? And I dislike the fact that whenever she comes over, she tells my helper everything that is happening at my SIL's place, about her helper cannot do this cannot do that, about how smart my helper is compared to my SIL's helper, about how disgusting my SIL's helper is in always dressing up to try and 'seduce' my SIL's Husband. Eh, this kind of things tell my helper for what!? How do I tell her not to compare helper and stop telling irrelevant stuff to my helper??? I'm upset whenever my MIL pops over. :(

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In my opinion, you should have a very honest conversation with your MIL. Both your husband and you should sit her down along with your SIL and address all your concerns. Open and clear communication is the key when it comes to the extended family. This is just what I would do.

If MIL doesn't respect your space then don't make it easy for her to come and stay. Just need to communicate it to her clearly that you all need the room for the kids. Your proposal of converting the room sounds reasonable.