Potential Tenant negotiating rent by offering to upgrade home

[Matt Leber]

Hello All,

Recently my wife and I have bought our second rental property and have been self marketing it at 1500/month. Some info about the house - it is a 4/2 in a great area, but it has no back exit, so you have to walk through the front and all the way around to get to the backyard. We had a showing with a potential tenant this week, who offered to install a rear door, small concrete pad, dense sections to keep his dog in, and an outdoor light fixture. He said all improvements would be made upon my approval and in return I would drop the rent to 1400/month. Is this a totally bad idea to even consider? Your opinions are appreciated!

[Thomas S.]

Never allow a tenant to do any work on your property. The work never gets completed, is of poor quality or creates a situation where the tenant repeatedly attempts to negotiate rent. Charge market rent and if you want work done hire a licenced contractor or do it yourself.

Never negotiate rent with a tenant.