I am looking (if anyone has one) for a lease addendum for work performed in exchange reduced rent.
The situation is a guy my investor uses for work, just got notified he will have to move out immediately. We have a property which is need of work and is sitting empty, so we decided to rent to him at a reduced rate in exchange for partial labor in trade for rent. The period of rent is only for 6 months, which puts us back into the better time of year to sell the property.
The property has been broken into a few times but luckily no major damage. Just some squatters looking for a place to stay. So we figured let's kill two birds with one stone. Get it lived in and some income, while getting it fixed at the same time. Also, this helps a really good guy and his wife out who happen to be in a terrible situation.
If anyone has something similar they have written up, please PM me or post that portion of the addendum here. Any and all help is greatly appreciated.
Thank you in advance.
Updated over 1 year ago
We do have a punch list for work needed.
It is not an addendum, I would write up a care taker agreement that was a blanket amount each month for duties that were required, they would complete the duties and the rent Concession was deducted the following month..
Keep the normal lease, Look for care taker agreement.
Your project sounds involved and nobody works as well when not supervised.
So I'd get a lease, write up a agreement of what's proper compensation for each project and take a portion of rent off as a concession, each month until project is completed. Otherwise I see it as you might as well let him live there rent free.
insurance wise it would make more sense for him to be a self employed contractor you hire. he needs his own insurance if you don't have workers comp insurance.. If he get's injured while working on your property it's a big mess.
I honestly never hire tenants to do work, I worked at large corporate complex and we did the rent concession for minor hallway vacuuming, and laundry room cleanup, type stuff but they could probably afford the law suit if somebody got injured.
Provide rent reduction after work is preformed or simply reduce rent with no discount.
Thank you for all the replies. Lot's to think about and discuss with my investor.
All of your advice is greatly appreciated. Again thank you!
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