My Tenants Want the Basement Finished
Hello! I have a four bedroom three full bathrooms property that is currently occupied. I charge these tenants $2000 per month for rent. I verified the fair market value with Basic Allowance for Housing at $2169.00. I also checked the FY 2016 Fair Market Rent Documentation System which showed $1934.00.
The tenants would like me to get the basement finished. There concerns are that because the basement is not finished, it is very cold down there, but I think they just want the extra living space. I found a contractor that I feel comfortable enough to move forward with. The positives of a finished basement is that the value of my property would be increased. Also, my tenants seem happy with the property (outside of the basement) and I want to keep them happy so that I would not be finding new tenants every year. On the other hand, a couple of things concern me. I feel that if I get the basement finished that I should raise the rent by at least $100, but I want to make sure that I remain fair. I honestly do not know all the other things that would need to be considered in this situation. I wonder if getting the basement done while they are there can raise safety or health concern. Then, it seems that it might be best to write something up, so that they would not be able to raise any issues later.
I would appreciate any advice or guidance on how to best approach and handle this situation. Thank you in advance.