Tenant's Demanding I Pay for Renovations They Did Without Permission

Tenant's Demanding I Pay for Renovations They Did Without Permission

Investor · VA · Member since 2016 · 47 posts · 26 votes

All,

really weird situation here.  I am looking for input/guidance if anyone's dealt with this before.

New tenants moved in about a month ago.  They went ahead and completely renovated the inside of the house.  New paint on walls, new light fixtures, etc.  I never authorized it.  After the fact, they asked me if I liked the renovations, and I did say I did (although my wife doesn't).  It does look clean, modern, etc. 
Here is where it gets weird.

They asked me to lower their rent because of the renovations they did.  I said no.  But I did say I'd be willing to contribute some to their work (big mistake).

Now they're saying that I told them I'd pay for the work directly to their contractor.  Definitely never said that.  and now my tenants are attacking me very personally like saying I'm a liar and that I'm not contributing because I'm too poor and that I'm dishonest to my wife, etc.  It's really weird and really nasty.


The lease is very clear that no alterations can be made in the house without written consent.  Not only was their no written consent, they didn't even get verbal consent.  

I also have all the photos of the house before they moved in.  Anyone can look at it and know the house is in really good condition.  Maybe the touch ups to cover holes on the wall weren't perfect.  But by no means was it a dump.  

I actually hired an attorney and am meeting with him later this week to discuss what's happening because I actually think this is incredibly weird and, to some extend, I feel like I'm being scammed or blackmailed.  Although nothing like that has really taken place (yet), this all puts a super bad taste in my mouth.  
Wondering if anyone else has dealt with such brazen and personal attacks from tenants and how they dealt with it?

Really appreciate all the advice I know will be forthcoming!

Happy to even discuss via private message if some want to go that route.

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Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
1y

File for eviction for violating the lease with alterations and at the same time sue to recoup the cost of returning the unit to pre-altered condition.  That should shut them up. 

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  • Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    1y

    I have no experience with this so take what I say lightly. If the lease states no work can be done then they are in violation of their lease. You did not agree nor give them permission. Do you have anything in writing regarding your response? From here on out do everything in writing and keep records. Right now it's them claiming you verbally said it without proof. Attorney will give more direction but I think they are mainly bark. Not sure why anyone would rehab a house they don't own.

  • Investor · VA · Member since 2016 · 47 posts · 26 votes
    1y

    Caleb,

    We've actually been communicating alot via text message, which I am happy with because it shows that they did the renovations without permission and my response to them that I'm not paying for the renovations.  

    As far as the rehab, I actually don't understand it either. I've rented spaces for many years before buying, and literally never once did I think about spending thousands of dollars to renovate it.  So there's a lot of weird stuff about this situation.

    Appreciate you taking the time to respond.

  • Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    1y

    @Ralph Miller

    Given that the lease explicitly states no alterations without permission, it sounds like you’re on solid ground here legally. 

    Documenting everything and involving your attorney is a smart move. In situations like this, tenants can sometimes try to force a landlord’s hand, so it’s important to stay calm and professional while reinforcing your lease terms.

    For now, I'd hold off on further discussions with the tenants about payment until you’ve met with your attorney. 

    You’re right to trust your gut—sounds like they might be testing boundaries, so having clear legal backing will help set the right tone moving forward.

  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    1y

    You are dealing with professional tenants here and potential squatters so it's good you have a lawyer involved now. What's going to happen is that they are going to stop paying rent to "recoup" their investment that they didn't have approval to do and then they are going to squat. When you file eviction proceedings, they are doing to remove (or threaten to) all of their renovations and leave the place a mess. Stay on this right away.

  • Investor · VA · Member since 2016 · 47 posts · 26 votes
    1y

    Mohammed,

    I agree.  no discussions about the payments until after I've met with my attorney.  Definitely pushing boundaries.

    Jonathan,

    Thank you for your insight.  Hopefully it doesn't come to that but wouldn't be surprised that's the trajectory.  Will definitely stay on top of this!

  • Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    1y

    File for eviction for violating the lease with alterations and at the same time sue to recoup the cost of returning the unit to pre-altered condition.  That should shut them up. 

  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
    1y

    You should not have told them you liked what they did not offered to help pay for anything. If that is in writing anywhere, even in text, it's going to present you problems in court. At this point, though, you are going to have to go hardball on them. First thing I would do is have your attorney file a demand letter against them for breach of lease, with a strict deadline for returning the unit to its prior condition or eviction and damage claims will be filed. 

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  • Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    1y

    @Ralph Miller, its easy to slip into talking to people casually like an acquaintance/friend. It's great to treat people well and speak to them like people but its also important to keep the roles and business issues in mind.

    I certainly would have been taken aback by their actions as well. Like you I think I may have considered contributing something to their effort if I thought it added value to the property.

    However, I would have done 2 things differently:

    1. I would have discussed a flat amount and been specific. I might have said something like it looks like you put in 5 light fixtures at ~$50 each and probably spent $250 on paint and supplies. So, I will credit you $500 towards next month's rent. 

    So, I would have been clear and specific.

    2. I would have also been clear that this is NOT acceptable and a violation of the lease, and that any repeat of this could result in them being evicted. I would let them know that this conversation will be followed up by them receiving a written lease violation warning.

    Then I would follow up by issuing them a written lease violation warning to document how they violated the lease and also that I had agreed to credit them $500 for materials even though I was not required to do so.

  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    1y
    Quote from @Ralph Miller:

     Hey! I have kind of dealt with something like this situation (not a full remodel, or people asking to now pay contractors directly).. 

    I was working as a property manager when I first got my license as an agent. There was a house that I oversaw (put too much time into by the way) and the tenants saw the owner one day getting stuff out of the garage, said "hey, can we put a new toilet in downstairs in the 1/2 bath, owner said, I do not mind but run it by Peter." I never hear of it and never communication from the tenant on the situation with the toilet. Well, the tenant changed it, and a couple weeks go by and the tenant contacts me stating the floor is swelling (wood floor that was placed in the property about a month prior to the tenants moving in). We get the contractor out there, the toilet had created a leak behind the wall, and caused $5,500 worth of damage. 

    There was nothing in writing and the lease did the state the same thing as your lease, no modifications. The tenants hung their hat on the fact the owner said it was okay with them and stated it was old pipes that caused the leak. It was resolved at paying half now and then the rest out of their security deposit when they moved out.  

    Get an attorney involved right away as you have and make sure that your communication with these tenants does not happen till after you talk with the attorney (or anything further). These tenants are trying to game the system (the system is you and the tenant laws), so be on top of it and make sure if you did communicate to your tenants via text/email you provide that to the attorney to circumvent anything you can... 

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  • Member since 2023 · 59 posts · 34 votes
    1y

    Interesting, it sounds like they not only breached your lease but also didn't pay the contractor?  "Now they're saying that I told them I'd pay for the work directly to their contractor."  I wonder if there is a risk of a mechanics lien against your property in this situation. 

    Looking back, can you think of any red flags when you were screening them?

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    1y

    I'd tell them they are in violation of the lease. I agree with Jonathan-something is up. Good you are talking to an attorney.  I'd evict them as they are only going to be a problem at this point given their attitude and calling you a liar.

  • Member since 2018 · 1k+ posts · 1k+ votes
    1y
    Cease communications. Have lawyer send a demand that they restore dwelling to original condition within 30 days or they will be evicted. Then evict.
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    1y
    Quote from @Ralph Miller:

    I haven't had a tenant that brazen, but I've dealt with similar situations.

    You've already offered to compensate them in some form, so it's only fair that you follow through. However, I would only pay for fixtures that will remain in the property when they leave. I would not pay for paint, brushes, labor, etc.

    I would give them written notice reminding them they are not authorized to renovate your home without permission. They can leave the improvements when they move out or they can hire a contractor to return the property to its original condition at their expense. If they refuse to agree, then I would consider terminating their lease.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    1y

    @Ralph Miller it all sounds suspicious, like they are setting you up for something.

    Hopefully, you're meeting with an experienced landlord-tenant attorney and NOT a jack-of-all trades one. We've had owners hire the wrong type of attorneys in the past and not only did they overpay, but the attorney made  bigger mess.

    As a side note, I shudder thinking about what many DIY know-it-alls on BP would be posting if this was posted about a PMC "allowing" it to happen:(

  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    1y

    We have delt with similar situations - can we paint? can we put up a fence? if we do the work will you discount the rent? We already did the work; can you discount the rent? Blah, blah, blah

    The answer is always the same - No. The lease clear states that you are not allowed to make alterations to the property without permission. You did the work without permission, without a license, without a permit, and therefore are responsible to put it back into its original condition. We then post a 7-day curable notice.

  • Investor · VA · Member since 2016 · 47 posts · 26 votes
    1y

    thanks everyone!  Your input into this situation has really been great.  I love this forum!
    I did meet with my attorney today.  They do specialize in residential real estate law.  We have a good plan of action set forward.  I don't want to share specifics here but once everything is settled I will update.

    Until then, would love to continue to hear people's input on this matter!

    Thank you all again!

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