Investor · Helena, MT · Member since 2015 · 37 posts · 12 votes
I have a tenant in a single family home that has been there for a while. He has notified me that he is getting married next month and his wife has a child with special needs. The child requires a machine to breathe, wheelchair and ADA accessible amenities. He has came to me and said they have money to make alterations to the house that would include installing a backup generator, ramp, shower, and a few other items.
I want to work with them, but I am curious to get some feedback. Are there things I should be thinking of that I'm not? Thanks for the input.
Real Estate Agent/Property Management · Houston, TX · Member since 2014 · 1k+ posts · 827 votes
10y
Not an attorney. This falls under reasonable modifications of the FHA/ADA. Tenants are allowed to make reasonable modifications to the property at their expense to accommodate a disability. They are also required to return the property to its original condition when they move out, again at their expense. See link below for more details.
I'll get to the specifics in a second. Honestly I would recommend selling your tenant the house if possible. If you want to keep it, here is my 2 cents:
ADA accessible shower: the well designed ones are awesome for anyone. This shouldn't cost you a perceivable amount extra to maintain.
Ramp: This will get rather expensive to maintain if it is made out of wood. Concrete is a better choice.
Generator: Should be a fairly easy maintenance. I would put it somewhere that allows easy removal if your tenant moves out. Pay a bit extra and have the electrician give it "plug in" ability if possible. This will also make it easier to sell.
Other items that come to mind:
Doorways: Are they wide enough to allow the wheelchair through AND turn corners.
Wiring: Does the room where the child will be have adequate electricity supply for all of the monitors and machines?
Attorney · Attleboro, MA · Member since 2015 · 412 posts · 165 votes
10y
WOW interesting topic. Sorry I don't have any exact answers for you but somethings to think about.
What is going to be a permanent change to your property and who is going to own what if/when the tenancy ends. For example, I presume the shower or widening of doors would be a permanent alteration while an outside ramp is something that could cover the stairs and be removed later on. Same with a generator, some wiring in the house would be permanent but the generator outside could be removed.
Who would own the ramp and generator and who would be responsible for their up keep and possible replacement?
Who is going to shire the contractor to do the work? Be sure any changes are indeed made up to code.
Maybe look at this as a a build out type situation in commercial area. What is going to be come a permanent part of the stucture?
Real Estate Agent/Property Management · Houston, TX · Member since 2014 · 1k+ posts · 827 votes
10y
Not an attorney. This falls under reasonable modifications of the FHA/ADA. Tenants are allowed to make reasonable modifications to the property at their expense to accommodate a disability. They are also required to return the property to its original condition when they move out, again at their expense. See link below for more details.
Investor · Edwardsville, IL · Member since 2015 · 432 posts · 481 votes
10y
I agree with Fred Heller . I think it would be legal to also insist on money being put in a special account to put the house back to the way it is now. Once again consult an attorney.
Here is a resource I think you will find to be very helpful. The US Dept of Justice and US Dept of Housing and Urban Development have put out a memo that covers a lot of the questions I believe you will have on what your role is on providing accommodations / modifications, who is responsible for paying, etc.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
10y
In the ADA language there is some information about what the tenant can modify. This is what HUD says in answer to some questions you may have but I am not sure if it is the latest and greatest.
In general the tenants are not required to restore exterior modifications back to the original state. For that reason I am not sure I would look to have a concrete ramp if wood will do. I think you would be free to remove the ramp after they leave in a single family dwelling. You can't insist on a material but I believe you can influence the design.
However, I don't see where the modifications he is asking for would hurt your property. A generator switch will require electrical work and if they leave then it could be something you could use anyway. A shower if it eliminates the only bathtub you could insist he restore it. A ramp is a ramp, I expect it would be wood.
If this tenant has been good with you so far it will certainly extend his tenancy. I would have an agreement on what the modifications will be. Check the law on how you can insure they are done to a correct standard and finished with the money they have. The last thing you want is that he has things started and not finished. Not sure what is in the law about that. I do know that there are ways to get assistance for some modifications but it may be income based. I wish you luck with this one and hopefully the house will be enhanced by the modifications.
Investor · Cedar Rapids, IA · Member since 2013 · 494 posts · 407 votes
10y
What @Fred Heller and @Colleen F. said... I just spent 2K on make a shower wheelchair accessible. I had agreed to do this before I bought the house which is managed by a non profit that cares for special needs individuals. The need for this kind of housing is only going to grow so I would let them do whatever they need to (probably have to anyway according to ADA) but then I would leave it that way "if" they move on later. It's a hassle to get this work done so they are hesitant to move. Supply/demand you can get a premium for housing that is set up to accommodate wheel chairs and it provides a service to the community.
Rental Property Investor · Knoxville, TN · Member since 2015 · 45 posts · 24 votes
10y
I personally wouldn't mind. If they are putting money into the property, you will probably have a long term tenant bringing your vacancy down and increasing annual cash flow.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
10y
@Jeff B. you MUST allow the tenant to make reasonable modifications at their expense. You make it sound like the landlord acquiring bids for modifications to fufill tenant needs is is standard. It may be in California but I have seen it done differently. You can have them contract and pay directly for the change although there are hazards with that too.
You can oppose the reasonableness of a change (elevator in a single family home-I had a client who tried to get this). The INTERIOR changes must be restored but not always (wider doors don't need to be restored) and the exterior changes don't need to be restored.
Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
10y
@Colleen F. My lease forbids tenant mods, so it would be inconsistent to start with Reasonable Accommodations being paid by the tenant and it would set the president of expecting mods anytime.
BTW: Just because the R.A. was allowed does not imply you have a life long tenant - - they can still be evicted in which case, the tenant could claim an equity position in the property from the work performed.
IF you want control of your property - - keep it and don't give it away out the backdoor :)
Acton, MA · Member since 2014 · 33 posts · 8 votes
10y
@Shaun Moore I have seen a metal ramp that fits over wood stairs across the street from a house I recently put on the market. There is an elderly gentleman in a wheelchair resides there. Might want to look into that.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
10y
@Jeff B. I see your point but i would structure significant changes to an escrow account then. I hear this equity interest argument from time to time and wonder how often it comes up in reality for landlords especially for ADA.
The ADA requires compliance, if the tenants pay for the modifications directly or it is re-imbursement of cost to you I would think the tenant interest in the property would be the same. The only way to avoid it is to do the modifications on your dime. I would not be inclined to do that in this situation.
You don't get a lifelong tenant but I would expect a good tenant who has been there for a while as the OP stated and then made these changes would be less likely to move. Of course the child could be moved for other reasons, all kinds of things can happen but that is always true. In my personal experience (not as a landlord) families with disabled children are less likely to move. From the tenant side I wonder if they would look for any longer lease as well after making these changes.