Cincinnati, OH · Member since 2015 · 18 posts · 6 votes
Hey BP,
I have a new tenant who just moved in on May 1st and are under a 2 year lease in our SFH 3Bed/2Bath property.
So far they've been great, very friendly, neighbors like them, paying on time, etc. No issues.
They've asked if they can replace the vinyl flooring in the kitchen. It could definitely use some updating. We would choose the color but they would cover the costs and do the work. The kitchen isn't big and this isn't a big job. Shouldn't require anything major to complete.
My initial reaction is that I'm not opposed to them doing the work since we're not talking about something really involved like electrical or plumbing. Are there any issues with having them pay for it or should I pay for the materials at a minimum? They're willing to cover all costs, they would just like to have a nicer floor in the kitchen while they're in the property.
Anyone else have experience with Tenants doing improvements? Any watch outs?
Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes
9y
@Will Yee I would just get the deal in writing that any tenant improvements made to the property become your property, and that you are not paying anything for this improvement. Something short and simple.
Really great people turn into really bad people when times get tough, and I've found across multiple industries that folks always like to dig out that one time they "helped" you when the relationship sours. IE they move out and you find $2k worth of damages, and then they fight back that they made the place so much nicer how dare you (when the floor was only $500). You also don't want them pulling up the floor when they move out, which occurred to a client of mine with light fixtures.
Just make sure everything is written and clear for the future. And be sure they have a pro do it or can do the work to that level. I can't count how many apartments I've gone through where tenants "repainted" all over the trim and windows, making the unit turnover repaint take twice as long and cost twice as much.
Cincinnati, OH · Member since 2015 · 18 posts · 6 votes
9y
@Mel C., I was wondering that too. Or if they would have any claim to get some money back at some point. They've already stated that they would cover it and wouldn't require any break on rent or reimbursement. But it seems with legal issues that what seems logical, never turns out to be so logical...
Flipper/Rehabber · Middlesex County, NJ · Member since 2017 · 29 posts · 8 votes
9y
I'm with @Max T., I'd have my installer do the work, it just avoids the possibility of liability. I'd also have tenants sign something that says they won't ask for reimbursement (assuming you let them pay for it).
Investor · Burbank, IL · Member since 2017 · 49 posts · 21 votes
9y
Make the tenants pay for the improvement and hire a professional to do the work. If they don't want to pay for it then tell them you will raise the rent X amount and that they must agree to the amount prior to starting the improvement.
Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes
9y
@Will Yee I would just get the deal in writing that any tenant improvements made to the property become your property, and that you are not paying anything for this improvement. Something short and simple.
Really great people turn into really bad people when times get tough, and I've found across multiple industries that folks always like to dig out that one time they "helped" you when the relationship sours. IE they move out and you find $2k worth of damages, and then they fight back that they made the place so much nicer how dare you (when the floor was only $500). You also don't want them pulling up the floor when they move out, which occurred to a client of mine with light fixtures.
Just make sure everything is written and clear for the future. And be sure they have a pro do it or can do the work to that level. I can't count how many apartments I've gone through where tenants "repainted" all over the trim and windows, making the unit turnover repaint take twice as long and cost twice as much.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
9y
Let's see - it's a kitchen you said. So, that means moving the refrigerator and range out of the way, because flooring is installed beneath those appliances. Then you will have cut edges to conceal - toe kick of some sort below the cabinets, baseboards on walls. I don't think I would let a tenant attempt this ...
Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
9y
If it's a 2 year contract, I would offer to pay for the materials and split the labor tab with them. They obviously see your house as a place they want to be a long time, so keeping them happy is important! Also, an updated kitchen, even if it's just the floor, will help you in the long term! As @Steve Babiak pointed out, it's not just replacing the floor.. it's doing the quarter round and baseboard, and assuming they know how to put it back correctly, what if they break a board, do they have a table saw? Sounds like a giant mess that they will likely screw up.. so I'd suggest splitting the cost with them.
If you put on your legal hat the answer would be no way.
On the other hand for something very small will it be an issue probably not. We generally would not allow that. Not saying we have not but 99% of the times my suggestion is no.
On a couple properties that we bought from auction the folks wanted to stay. We got all the outside work done. Some flooring and paint that we wanted to do the tenant did it himself because that is what he does for a living. In a sue happy society we live in we had him sign a waiver.
As a general rule no but we made an exception in this case. It worked out okay.
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
9y
As @Steve Babiak mentioned there is a lot more that goes into installing flooring than people think a lot of the time. Hire a professional to make sure it is done right.
Cincinnati, OH · Member since 2015 · 18 posts · 6 votes
9y
Thanks everyone for your input!
Definitely some things that I hadn't thought about. We're leaning towards letting them do it, but will need to make sure that we have a very clear agreement in place on what they need to do and that it will become property of the owner.
Realtor · Warren, RI · Member since 2017 · 96 posts · 52 votes
9y
Hey Will Yee ! I think that's definitely the most important part in this case. Especially if you end up letting them go through with it. Because there is likely nothing in your current lease that covers a situation like this, I'd only follow through if you had a written contract signed by both yourself and the tenant(s), to cover liability, and reimbursement claims (making it clear that cost is entirely on them)! Have it in legal writing to CYA (cover your @$$) Good luck and let us know how it goes!