To reimburse or not to reimburse, that is my question

To reimburse or not to reimburse, that is my question

Investor · Bellevue, WA · Member since 2014 · 7 posts · 2 votes

I have a great tenant who's an electrician. Recently, I had one of my wall heaters go out and he offered to replace it, I accepted. He ended up replacing all the wall heaters in the unit because as he put it, "they were old, some were painted over and all were on verge of going out soon." He offered to cover half the cost.  

How would you handle this situation?  

Thanks in advance!

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
9y

PAY HIM HALF THE COST NOW BEFORE HE CHANGES HIS MIND!  ;)

The DIY Landlord Book4.7247 Reviews
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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    9y

    PAY HIM HALF THE COST NOW BEFORE HE CHANGES HIS MIND!  ;)

    The DIY Landlord Book4.7247 Reviews
  • Linda WeygantPro Member
    Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @Nathan Gesner:

    PAY HIM HALF THE COST NOW BEFORE HE CHANGES HIS MIND!  ;)

    Agreed.  Replaced all heaters by a qualified electrician for half the cost?  What's the catch? 

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    9y

    I suppose we should emphasize a few things so people aren't steered wrong:

    1. You should only use a tenant when they are licensed and insured.

    2. The scope of their work should be in writing. In this example, he was supposed to replace one heater and instead he replaced them all. Even with the tenant paying half, this could be a significant expense. And next time he may ask for approval to fix a door knob and decide to install new carpet. You think I'm joking...

    3. When you hire a tenant to do work, do not deduct payment from the rent! If you deduct the payment from their rent and they do a crappy or incomplete job, you have to go after them. Instead, charge them the full month's rent and pay them for the job only after the work is satisfactorily completed. This also helps you track rent income vs. expenses.

    Does anyone else have additional tips to share?

    The DIY Landlord Book4.7247 Reviews
  • Investor · Mission, TX · Member since 2017 · 220 posts · 135 votes
    9y
    Nicolas Chambers I might be a little annoyed, but I'd pay him immediately! I don't like being "forced" into paying for anything.
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