Should I replace the roof with tenants in place?
Hey guys,
I just closed on my first duplex and the roof is pretty outdated (20 years old). It is in working condition but has a leak and should be replaced - I want to replace it for personal peace of mind and insurance purposes. I inherited two solid MtoM tenants that are paying $1,100 each, way below market rent of $1,650. I'm going to give them the option of staying for $1,580 or leaving in 30 days (Florida law is 15 days but I want those extra days to replace the roof). I want to start the roof replacement ASAP so the property is rent-ready if in the case the tenants do decide to move out.
Is it okay to replace the roof with the current tenants there? Would this be a violation of their quiet and peaceful enjoyment of the property? How should I go about this?
I truly appreciate your help!
Maintenance and repair work happens all the time. A roof replacement doesn’t make the property uninhabitable
Absolutely you should! Showing the inherited tenants that you're committed to the maintenance and integrity of your property will establish a lot of goodwill. As long as you communicate well with them and coordinate the repairs around their schedules as best possible I think you'll help the chance that they renew for a higher price.
Agree with the others. It will show your tenants that you are serious about taking care of maintenance & repairs- Also, just follow the rule in your state for how much notice you need to give (mostly 24-48 hours).. as long as you're in that range & let them know you should be more than OK. Good luck getting that roof replaced!
#5 Multi-Family and Apartment Investing Contributor
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#5 Multi-Family and Apartment Investing Contributor
- Investor
- Shelton, WA
Just let the tenants know......it is messy and loud but done in one day sometimes two.
Buckets or replacement! The tenants will opt for the replacement every time. Buckets, mold, ruined stuff - all sucks. Rock on with the replacement.
Right to peaceful enjoyment doesn't mean you can't work on the property, it just means it needs to be reasonable and not unnecessarily intrusive. Also as long as it occurs during 'normal' working hours and with reasonable notice then you're fine.
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@Marcos Carbi
Yes just give them advanced notice in case they work from home so they are aware of the work and can plan appropriately
@Sergey A. Petrov @Andres Murillo @Jason Maguire @Bjorn Ahlblad @Matt Devincenzo @Patricia Steiner
Thank you all for your advice!
How should I go about introducing myself to the tenants and then raising rents? Should I see when they're available for a call or simply email them? Should I send them a little care package prior to raising rents?
Step 1 is send them a letter - mail or email whatever you have from the seller. Tell them you are the new owner, tell them how to pay rent, and tell them how to communicate with you. Tell them their rent for this month was transferred to you by the seller. Tell them their deposits transferred as well. This happens the day you close or the next day. In that same letter you could say you’ll be evaluating the property to make sure things are where they need to be and maintenance is done.
Step 2 (after all of them call you with their maintenance requests), send a follow up letter letting them know you’ve completed the bulk of the work, there is more to be done, you are looking forward to better operations, you’ve conducted market research and rents will be going up, new leases will need to be signed, etc
@Marcos Carbi the best advice is to honestly just be respectful & be yourself when you introduce yourself.
If the tenants are that far below market rent they probably most likely know that & won't be too surprised. When i first took over my duplex, i texted the tenants and asked when they were available to meet in person to discuss future leases. The first response i received in person was "Are you going to kick us out" I simply stated No, but that the markets were well below market rent & that we needed to work to get them up to a more reasonable price. I was very respectful, transparent & also honest & they were completely fine with the rent change. We went from $720 to $850 just like that!
@Marcos Carbi
Definitely replace the roof if it needs it even if there are tenants there. Just communicate and let them know what's going on. Also, to your point about how to go about it. Just introduce yourself as the property manager and inform them either in person or over the phone.
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You're running a business...raising the price is a business event. And, in some states, it is required to be written with a minimum of 30 days notice. Simply send a letter (there are sample ones online) to advise that "effective (date), the rent will be $X and payable by the 1st day of each month; please remit your rent payment (via zelle/to) on or before the due date. The increase is necessitated by increased costs and does remain within current market rent." (Something like that...be sure not to apologize for the increase; again, it's business not personal). Hope this helps...
Quote from @Marcos Carbi:
I do it all the time. Notify them in advance, warn them that you don't control the vendors or their work hours, it can get noisy, be careful around the job site, etc. The more you disclose, the better.
In the future, I recommend you avoid large increases on existing tenants. They often can't afford them and will resent them. I think it's best to get rid of anyone facing an increase of 15% or more and starting fresh with a tenant that you know can afford the rate.
Seems you've gotten plenty of good advice ... but I'll still chime in! :P
Proposal about the rent increase ... Instead of hitting them lick a huge weight with such a high increase, maybe propose a choice!? (IF they've been there a long time...) IF they stay Month2Month, then tell them it will increase to XXXX over the next 3 months, staring this next month! OR, have them sign a 6mth or 1yr lease with you, for a little reduced rate from what you originally thought it should be. Hmmm!??? :)
For the roof, yes you can do it while they are there, with advance notice of course (as others have said). Other than the normal: it's a construction zone... Debris, noise, people on/around the property. But they also probably won't be able to use the garage or driveway for 1-2days. And any pets will have to be inside, or even perhaps boarded (if they are skittish). Pools have to be covered, landscape or important planst/flowers/gardens have to be protected, etc etc etc. Most of these things are "normally" done by the roofers.
Simply message me/us if I can help! ( J's Roofing , Dallas, TX)