If a tenant requests upgrades to home, what do you do?

General Landlording & Rental Properties
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If a tenant requests upgrades to home, what do you do?

Sarah Young
Realtor 路 Charleston, SC 路 Member since 2017 路 116 posts 路 88 votes
We are moving out of our home and have renters moving in. This home is large, very well kept, and in a very nice neighborhood. The tenants moving in are wealthy and have expensive taste. (Just to paint the picture for you 馃槈). Prior to signing the lease, the tenant requested a few things, one being a privacy fence for the backyard to replace the one side that has chain link fencing. We obliged, because we had been wanting to do it anyway, and I wanted to retain this tenant as this family felt like the best party interested, by far. My husband is currently building the fence, but we are short on both time and money as we are moving across the country and purchasing another home in the next two weeks, and hubby has been working 100+ hour weeks the last 3 weeks. It's challenging, but we are making it happen because we agreed to it. A few days ago, the tenant texted me asking if there was any way we could have a garbage disposal installed. The house is almost 100 years old, and doesn't have one. My husband could easily instal one (he's done them before), but we have so many projects with moving and getting both of our rentals in this town ready to rent on the same day we move, that we just don't have time. I told her we are short on both time and money, so we couldn't contribute either at this time. She said she would get a bid and let me know. Then today she texted "should I just go ahead and get it installed and we can square up later?" I never committed to paying for it, and I don't know that I want to pay for it. But if it's an improvement to my home (which I didn't request or agree to doing), do I contribute part? I was thinking of saying we would buy materials (the disposal), and she could pay for labor. Because if we had more time, my husband would be installing it and we wouldn't be paying for labor, but we would be paying materials. Thoughts? How have you all handled situations like this in the past? Thanks for your help!
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JD MartinBusiness Member
Moderator
Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 16k+ votes
9y

No way on the disposal. They are nothing but trouble in rentals. Besides, they took the place without a disposal. 

We don't agree to anything that's not in the lease or part of normal maintenance & repair of our choosing. Tenants accept the premises as-is and they are free to find another place if they don't like the setup. 

Never rent a house out of fear. It will make you a prisoner of your tenant. Too late now, but I think you should have declined on the fence. You do improvements to your property on your schedule and as you see fit, not in accordance to the niceties the tenants want. They should buy their own home if they require these things. 

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 16k+ votes
    9y

    No way on the disposal. They are nothing but trouble in rentals. Besides, they took the place without a disposal. 

    We don't agree to anything that's not in the lease or part of normal maintenance & repair of our choosing. Tenants accept the premises as-is and they are free to find another place if they don't like the setup. 

    Never rent a house out of fear. It will make you a prisoner of your tenant. Too late now, but I think you should have declined on the fence. You do improvements to your property on your schedule and as you see fit, not in accordance to the niceties the tenants want. They should buy their own home if they require these things. 

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  • Christopher B.
    Rental Property Investor 路 Knoxville, TN 路 Member since 2011 路 701 posts 路 531 votes
    9y

    You've cracked the lid on pandora's box and need to get that shut real quick imo. In your lease it should be clear that the tenant is not allowed to make changes to the property without your explicit consent. In short, no. Don't oblige them or even act like you're entertaining all their requests and make it clear that you've provided a nice, functional home and it will stay as-is. If something breaks or honestly needs replaced/fixed then do it. They don't get to add luxuries and send you the bill just because they want them. I'm a bit annoyed for you right now. Sometimes you give a little, yes, for example I had one tenant recently ask if we could add 2 plugs in the garage at his expense because he is getting into building small furniture. I obliged and sent my electrician out. No cost to me, improves my property, being done by my electrician, and the tenant is happy. Another tenant asked if they could get a 2nd dog, we only allow 1 pet, I said sure and I'll even waive the $250 pet fee for it when you renew your lease. I did this because they've been good tenants and we'll probably have to replace the carpets when they leave anyways. This is a small incentive to keep them there another year and will be cheaper than a unit turnover,a win-win for both sides.

    The point is don't let your tenants try to press you for things constantly or control the situation. Lay the law down when you sign the lease and stand firm the first time they come at you with something like this. You don't want to constantly be spending your time and money working for them. Also, absolutely not on the garbage disposal. Those things can be a maintenance headache. I have one remaining unit with a GD and I told the tenant when they moved in that if it goes out we wont be installing another one because they break a lot, their answer "ok, totally understand."

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  • Sarah Young
    OP
    Realtor 路 Charleston, SC 路 Member since 2017 路 116 posts 路 88 votes
    9y
    Thanks, Jd Martin Would you allow them to instal the disposal on their own dime? I feel like it's an improvement to the home, but do you think it will be more hassle to have? Don't most homes have them nowadays though?
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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 16k+ votes
    9y

    No. Especially if you want to keep renting this house out. Yes, lots of houses have disposals but lots do not. Disposals can be dangerous, clog at least some of the time, wear out, and encourage tenants to dump crap down the drain. If we buy a house that has a disposal, we take it out (same thing for icemakers). 

    The bigger point is allowing the tenant to dictate improvements on your property. This is only going to lead you to heartache as @Christopher B. mentions above. 

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  • Christopher B.
    Rental Property Investor 路 Knoxville, TN 路 Member since 2011 路 701 posts 路 531 votes
    9y

    @JD Martin preach it brother

    1Reply
  • Sarah Young
    OP
    Realtor 路 Charleston, SC 路 Member since 2017 路 116 posts 路 88 votes
    9y
    Christopher B. Thanks for the advice. I will heed it and set firm boundaries asap. I think that's what I needed to hear. I wanted to accommodate with the fence, but I see how we may have opened Pandora's box, and need to shut it.
    1Reply
  • Christopher B.
    Rental Property Investor 路 Knoxville, TN 路 Member since 2011 路 701 posts 路 531 votes
    9y

    @Sarah Young  No problem. I think that'll be the best route for you. How you've started is exactly why many get burnt out of the landlording business. It's tough sometimes but has to be done. Good luck 

    0Reply
  • Michael Boyer
    Investor 路 Juneau, AK 路 Member since 2015 路 980 posts 路 741 votes
    9y

    Agree with the tenor of the comments to the effect "Houston, we have a problem..."

    The old saying goes: today's privileges are tomorrow's demands...

    I suspect you have just started to see the list of requested improvements.

    My two cents....Tenants that have had a upfront requests have never worked out for me (so I try and avoid them altogether now). 

    If they have demands at the showing or early stages, it is often a clue the unit is simply not a good fit for them.

    For example, if someone comes in for a showing and says "could we make the whole place x color" I just say "no" and move on to the next tenant...

    They are really telling me (in landlord language) is that the unit as is is not ok for them but they think if they can put their stamp on it, then perhaps it will work out... Never, ever does. 

    The one time early in my career I let someone paint a place they were gone barely after it dried.....I learned. 

    You will learn a lot from this tenant on making sure the tenant and the property are a fit as offered. The money you make on these special requests almost never covers all the improvements they want in my opinion.

    I know, all well and good wise words but what do you do right now, with the disposal, with the coming request for a new deck and jacuzzi next month... 

    I would actually do this... Since you are moving anyway (and I am not a big fan of cross country self managing) I would hire a top notch local property manager. I would even give the new manager permission to tell the tenant that I (the owner) was new and did not know all the norms and ins and outs of being a landlord (and that it is a 100 year old single family not a made to order Ritz Carlton). And empower the manager to reset the landlord tenant relationship to the extent possible and establish reasonable parameters (granted, they may already be in your lease but can still use assertive management).

    Best of luck

    3Reply
  • Mike Koprowski
    Rental Property Investor 路 Brimfield, MA 路 Member since 2017 路 43 posts 路 53 votes
    9y
    Wow! Sounds like you have a wonderful property to begin with, hopefully qualified tenants are lining up to get in. Stand your ground, it's still YOUR house. Not much to add, lots of great advice already, just here to give support. I particularly like the "today's privileges" quote by Michael Boyer (Alaska is cool, I have family on Kodak Island) Good luck, hope the "lid" stays shut.
    1Reply
  • Troy H.
    Greensboro, NC 路 Member since 2015 路 129 posts 路 30 votes
    9y

    @Sarah Pursell Definitely stand your ground. Like others have mentioned, if you let them push you around this early they will never stop. Good luck.

    1Reply
  • Justin Fox
    Software Developer 路 Vidor, TX 路 Member since 2015 路 922 posts 路 639 votes
    9y

    Just say, "Nope, says in the lease the property comes with x, y and z appliances and you signed."

    0Reply
  • Thomas S.
    Member since 2016 路 13k+ posts 路 12k+ votes
    9y

    The fence was a mistake regardless of your own plans. You have taken on what is going to turn out to be very difficult, demanding, entitled tenants. 

    You need to immediately lay down the law and not agree to any more requests regarding the property regardless of what they are. Going forward you need to stop catering and adopt the landlords hand book of rules. Regarding tenant requests rule #1 the answer to all requests is always NO. Rule #2...there is no rule #2.

    I would strongly advise that you do not even try to self manage and that you have a PM in charge that strictly adheres to rule #1. I hope you have a very strong detailed lease or this property will quickly go sideways. Make sure you PM does frequent and regular inspections as I assume these tenants will not hesitate to violate your lease and destroy your property.

    1Reply
  • Brandon Brown
    Rental Property Investor 路 Nashville, TN 路 Member since 2015 路 102 posts 路 129 votes
    9y

    "Wealthy with expensive taste" lol, they'll never stop with request if you do the garbage disposal.  I just took one out during my renovation because of the headaches they cause.  You gotta stop this train in their tracks.

    1Reply
  • Deanna McCormick
    Minneapolis, MN 路 Member since 2013 路 2k+ posts 路 1k+ votes
    9y

    More than likely a electrical upgrade will also be needed to accommodate the disposal.

    I would simply say you are not approving a disposal to be installed and that you are almost finished with the fence.

    Make sure that you take photos of the interior and exterior of the home before they move in.

    Just because they seem well off doesn't mean they won't live like slobs.

    Make sure you have someone set up that lives close by to do property checks in your absence. A long distance commute to fix a leaky faucet is gonna be a issue. 

    0Reply
  • Kathleen Leary
    Princeton, KS 路 Member since 2014 路 357 posts 路 169 votes
    9y

    If they are good tenants & pay their rent & don't trash the place, maybe as a "Thank you for being good tenants" gift, you could consider it AFTER THEIR CURRENT LEASE TERM IS UP.

    I wouldn't put in a disposal, though. Maybe a smart thermostat or something.

    Do not let tenants dictate your upgrades - they sound like a PIA, honestly.

    0Reply
  • Roston Elwell
    Bryan, TX 路 Member since 2017 路 21 posts 路 10 votes
    9y

    Don't forget your business is renting property and the tenant is your customer.  Like any business some small concessions to the customer can go a long way. I help my tenants out with small things they want and it makes them happy to to live in my properties.  It sounds like you have high end tenants that are reasonable. The customer service is different at a steak house then it is at a fast food joint. Both business make money but their business models are different. I would treat them as reasonable until you they act otherwise.

    1Reply
  • Jaquetta T Ragland
    Real Estate Agent 路 Winston Salem, NC 路 Member since 2014 路 486 posts 路 303 votes
    9y
    If it's not a "necessity", definitely no. Garbage disposal is not a necessity and can actually turn into a headache if they don't properly use it. A fence can be expensive. If it isn't for extreme safety reasons ...I would say no to that too.
    1Reply
  • Colleen F.Pro Member
    Investor 路 Narragansett, RI 路 Member since 2013 路 8k+ posts 路 4k+ votes
    9y
    We've done a fence to fence out a hazard but not for the look of it. I would just say we accommadated you previous request but that was all we were planning on doing. We do not want and will not approve a garbage disposal or other changes to the house, specifically mention painting or any permanent installations. Tell them nicely If that doesn't work for you I don't think this will work out. You cannot afford special request high maintenance tenants. I have allowed some requests like I want to plant a garden or I need storage shelves but the sooner they start asking for changes to the structure the more likely they are high maintenence. You could also opt for a pm.
    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor 路 Sioux Falls, SD 路 Member since 2015 路 9k+ posts 路 18k+ votes
    9y
    Originally posted by @JD Martin:

    No way on the disposal. They are nothing but trouble in rentals. Besides, they took the place without a disposal. 

    We don't agree to anything that's not in the lease or part of normal maintenance & repair of our choosing. Tenants accept the premises as-is and they are free to find another place if they don't like the setup. 

    Never rent a house out of fear. It will make you a prisoner of your tenant. Too late now, but I think you should have declined on the fence. You do improvements to your property on your schedule and as you see fit, not in accordance to the niceties the tenants want. They should buy their own home if they require these things. 

     JD is right, but I would add that a 100 year home does not have proper drain piping for a garbage disposal. Drains are for water, minus toilet drains which are 4" pipe so that is fine for solid waste. Tell them no and explain the older piping is not designed for it. My newer home has 4" pipe on the kitchen drain.

    Secondly, never agree to "square up later". Any modification needs to pre-approved in writing with a clear definition of who is paying what. If you leave it open or verbal, people will come back later remembering something different. 

    Disposals, water softeners, whole house humidifiers and fireplaces should all be avoided in rental homes. They are all just repairs waiting to happen and don't add value proportional to the costs.

    1Reply
  • Joel Florek
    Rental Property Investor 路 Michigan City, IN 路 Member since 2015 路 530 posts 路 741 votes
    9y

    @Sarah Young Never let the tenant be in charge of your projects. Its seems like the easy route is working with your tenants to keep them happy but if you give them an inch most of them try to take a mile. I have many situations where tenants ask for upgrades. Certain things I say no on. Disposals are one of them(which people have asked for). If its a deal breaker in your market for your type of tenant well then you have to do it. But it sounds like your tenants agreed to a price and your home with no disposal so I would guess future tenants will agree to your leases without a disposal. That is an item that will cause maintenance and increased risk due to failure and causing water damage. I have walked through too many properties where the disposals leaked and ended up destroying the kitchen cabinet. 

    For other improvements to the property that I want to make, sometimes I will tell them its not in the budget/plan this year, but if they pay for "x" portion we can get it done by a certain date. If you want to do the work yourself then great, if not hire it out and make sure "x" covers that labor and ideally a good chunk of the material. 

    Its not being mean. You do this as a business. As business owners you and we need to make money. But if our customers request certain amenities that are not offered we need to adjust our pricing to account for that request. If they are not willing to pay extra for it then clearly the amenity they are requesting is a "nice to have" and not a "need to have." 

    0Reply
  • Account Closed
    San Jose, CA 路 Member since 2015 路 4k+ posts 路 3k+ votes
    9y

    I'd say no, as well.  I'd tell them that the problem with a disposal is that they often result in plumbing problems, where people think they can dispose of things down the sink that they can't.  So sorry, but they will have to be careful of anything they put down the drain that may cause problems that may come out of their deposit.

    That's how I'd put it.  So, they know that any problems resulting from them trying to cram junk down the drain may result in out-of-pocket costs to them.

    Yeah, you need to set some boundaries here.  

    I'm now a renter, and my view now is that it's worth asking.  I know the answer may be no, but it's worth asking.  So, your tenants may not be evil or expecting more than is reasonable - they may just figure "why not ask?"

    That doesn't mean your answer has to be yes.

    0Reply
  • Jacob Villalobos
    Whittier , CA 路 Member since 2013 路 176 posts 路 96 votes
    9y

    Hell No!

    Find a better tenant. They are going to keep asking for stuff.  

    0Reply
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