Tenant wants to break her lease, kitchen remodel before she goes?

Tenant wants to break her lease, kitchen remodel before she goes?

Rental Property Investor · Perry Hall, MD · Member since 2016 · 587 posts · 599 votes

One of my tenants wants to break her lease early at the end of this July. I'm fine with it if I can find a suitable replacement as she's well below market and her lease is actually set to end in November. It's a 2B 1Ba row home in good condition. The one area that is lacking in the house is the kitchen. It could really benefit from some cosmetic updates. It has a cheap looking drop ceiling, an old yellowed laminate floor, and worn formica countertops. It's important to note that it is a galley kitchen.

The current plan is at a minimum to replace the flooring, countertops and to remove the drop ceiling. Then repair the existing plaster ceiling above it (It should just be some paint scraping/minor patching). I am considering removing the wall that separates the kitchen from the dining room as well but that depends on if it's load baring and where the utilities are run as they are within that wall.

Decent amount of work. I think it's worth getting done if I can do it for a reasonable price before trying to show the house to help attract a higher quality tenant. At the same time, it may not be necessary to do all this to attract a suitable tenant. Considering the unit is occupied, should I simply start showing as is to see if I get some interest or do I just knock out the upgrades prior to the busy season for prospective tenants?

Any other general advice on pulling off a remodel while a unit is occupied? Thanks BP!

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  • Member since 2016 · 13k+ posts · 12k+ votes
    9y

    In light of the fact that you are doing the tenant a favour by letting them out of the lease I would defiantly get the reno work completed before she moves out. I would start asap get it done and start advertising before the end of June to be able to attract the best tenant.

    I would not be overly concerned about the present tenant but you may have to force entry for your contractors to get the work completed quickly. Your contractors need to be in there during the day when she is at work.

    You need to get the work completed regardless of the tenants feelings. Just remind her you do not have to let her out of the lease.

  • Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    I have found that renters will  to have the same vision as landlords when it comes to improvements.

    I always renovate then rent.  I never show a property before it is finished.

    I have a friend that is just the opposite and will put an old paint can next to the front and tell prospective tenants that he's in the middle of painting and he will be glad to let them pick the paint and provide the labor.  Not my style of LL'ing

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