Reduce Rent For Work?

Question

Elizabeth Colegrove · Answer

I would be very careful about adding financial compensation into the deal. I made that mistake with my very first rental. If the tenant fixed thing themself I always gave them a x amount of the rent Asa thank you. Well when they left, the house was absolutely aweful. There response was we did x,y z, etc for you. It was aweful from them on I have said any improvements are at the tenants expense. While I would often times like to "thank them" I have found it opens a difficult door to recluse later. It honestly complicates life and in my opinion is usually not worth it. Just my two sense!

Sean Connolly · Answer

A gift, gift card, or something along those lines would be nice. I feel like reduced rent for a short duration would just be more paperwork needed. Keep it simple.

Jonathan Wilks · Answer

I agree with the gift card! He might be a great resource to do additional work in other units.

Lisa Doud · Answer

I think it is very important to never give tenants any sort of proration on their rent for work completed.  Once you do it once they expect it all the time.  About 6 years ago, I had a guy living in one of my properties that was an HVAC Tech,  His A/C unit went out and he said that their was a leak in the coil (the unit was only 1 year old),  He Quoted me $2500 which equates to 2 Months of free rent.   I went ahead and called my preferred vendor (one ho installed the system) he told me the entire system was still under warranty, and he just had to officially find out what was wrong with the unit and then submit to Janitorial for the parts.   When my preferred vendor went over he found that the "HVAC TECH TENANT" installed a Programable thermostat (not recommended in Rentals because some tenants don't know how to use them), and shorted the 24v circuit to ground thermostat circuit to ground.  My tech charged me a service call of $84.99, and $34.99 to put in a non programable thermostat, which I then charged the tenant....

What I am saying is you have to be very careful when dealing with tenants, if they think you don't know what you are doing and are too trusting that will try to scam you.

My rule is not I will never use a tenant to do any kind of work on the property they live in because that is conflict of interest.  If they want to be a vendor of mine and work on other properties I manage that is fine, but they can't work on the ones they live in where they would be inclined to raise their labor cost to get more free rent.

Well that is just my 2 cents..

Arlen Chou · Answer

@Arnie Guida what ever you do, don't tie it officially to work that he has done, especially in writing.  You don't want to create a potential that he is "working for you".  If you exchange financial compensation for work done, it can be seen as payment for services. If you do this on a regular basis or even multiple times, there could be an argument made that he is in fact an employee and entitled to workers compensation.  From that point it is not a far reach to be potentially liable for any injuries he might get during the course of "working for you".

I would highly suggest that you get him a nice birthday or holiday gift in the near future and just thank him for being a "good tenant".

Good luck on what every you decide!

Jerry W. · Answer

I have always tried to do something nice for my tenants when they do something nice fon the property (with permission).  I have on occasion reduced rent, on other times I have made sure they got the new appliance first, etc.  In light of all of the answers on here I may need to rethink my normal policy.  I definitely say thank you and comment if it is done well.

Jeff S. · Answer

He has a nicer place for no additional rent. Be happy.

Jean Bolger · Answer

Gift card is better than reduced rent. Doesn't set a precedent and is easier to expense at the end of the year.

Do you have any turns coming up that need carpet? If so, I bet he'd be happy to get the gig. Lots of workers employed by a larger company appreciate the chance to do a side job now and then for some extra cash

Reduce Rent For Work?

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