Swapping units with tenant...

4 Replies

My wife and I are currently house hacking our duplex. I've been making many improvements on our unit since we've lived in it such as cosmetic, plumbing and electrical. My tenants side needs alot of work done to it and offered (upon signing of their new lease) to switch units so that I can start the much needed work that is needed on that unit and they can live in the updated unit. When I asked if she would be interested she seemed a bit reluctant to do so. Any ideas on some incentives to use to get her to swap units? Thanks!

Cheers BP!

@Chris Shelton I’d say telling them no rent increase would be a good incentive. Of course, would you want to do that?! Or telling them they can switch back when work is done? But that’s kind of a pain.
@Chris Shelton why are you naking these improvements? Is It to catch up on deferred maintenance or to make improvements at the property to increase demand and the monthly rental income? If it is deferred maintenance, perhaps it’s best to wait until you have turnover. If it is to raise your income stream, you must ask yourself if this tenant would value those improvements and pay the higher rate. I think you will determine in is best to wait until turnover and put that cash to work elsewhere MAKING you more money.

Its to increase demand. Theres a good chance that if I don't do it now I won't have the option to do it myself in the future due to the possibility of me getting stationed elsewhere.

While I can't speak for your tenant, I wouldn't want to move either unless I was getting some kind of incentive.  Even if the new unit was nicer.  It is a big, time-consuming hassle to move, even if it is within the same building.  I've done it three times.  Not the same building.  But once, the same apartment complex.  And twice a different house within a 1/4 mile of my previous residence.

Depending on how much you want the tenant to switch units, I'd offer to pay for movers and a few hundred dollars off the next month's rent. Even better, ask her what it would take to move. She might be even cheaper than I would be in the same situation!