Never agree to trade work for rent. Tenants are 100% unreliable and will usually do a terrible job. They will take advantage, over charge and probably never finish the work. If the guy is a qualified and licenced contractor consider hiring him to do the work but never agree to trade work for rent. Hire him before you rent the unit to him not after. Always keep your tenants and contractors separate.
"Always keep your tenants and contractors separate."
Good advice, that.
I'm on board with everyone else. Even if the guy were a licensed plumber and offers to install a new water heater, you should always, always, always keep rent and services separate.
If your tenant is fully capable of doing the job, hire them like you would any other contractor. They should have insurance, meet your deadline, submit to inspection, etc.
I don't have any revelations to add, but you should never offer a discount or trade for rent in any situation. Once you negotiate rent, everything becomes negotiable and you lose any leverage with a tenant that you might have had.
I am going to disagree with everyone else...... No, just kidding, never do that.
Don't trade work for went, Tenant are non reliable and possibly never picked up a hammer in their life. I rather leave the house vacant for another month and find a reliable tenant once it is ready. They will use this repair to their advantage in the future.
Sooner or later your landlord is going to make you angry. Sooner or later your boss is going to make you angry. If you are both the boss and the landlord, it will be sooner rather than later!
well of course in my reverse landlording style.. I have tried this a few times.. NEver works.
This is a terrible idea.
Pretty much any renter that will move into a place that is not rent-ready is going to suck.
One reason renters rent is because they don't have to do maintenance or deal with the issues that come with home ownership - so it really makes no sense for a renter to want to move into a place and do a bunch of work that an owner would have to do.
I agree with everyone! The other thing to consider is on paper or in multi family properties, this can actually lower the value of the property.
Landlord " That drywall looks good nice job "
Tenant " Thanks I figure I dont have to pay rent for 9 months , and you owe me $1200 for supplies"
Landlord " F$%# That BU&^%*#@ "
Dont do it
If I knew the person's work, I might allow it. If he does remodeling for a living.... But it could turn into a hack job real quick. Maybe let them do one job and see how it turns out.
The trades tenant is too exhausted to do anything for their landlord. On their own time they do not want to be bothered.
Unless they are out of work needing money to get caught up with rent. My experience they are not motivated.
I have tenants that do work for me but I do not pay for them to work on their own apartments and I do not permit tenants to make unauthorized improvements on their own apartments.
However, when I have vacancies, I have one tenant that can install a toilet or a sink faucet; he occaisionaly runs into a problem and has to call for help but most of my toilet installs cost $10-$20 (I pay $10/hour). I have one girl that does a super job prepping old crufty trim for painting (in 100 year old buildings with 6" oak with many layers of crappy paint). I give her a red devil and an orbital sander and a pack of sandpaper and she gets that baseboard smooth as a babies bottom; it makes a huge difference in the paint job and I could never afford to have professional painters do that. It took a little training and figuring out what to ask for but now I just tell her how much I want to pay for-- ie 2 hours on this trim so do 15 minutes on each wall base and 20 minutes per door trim and do the best that you can. That gets me a pretty nice job for not too much money.
I have another guy that likes to lift. It costs me $20 to get a refrigerator up 3 flights. Call a company and see what you'll pay.
Please don't let a tenant do any repairs. Their quality of work won't match your expectations and they are likely not insured to do any work.
keep your tenants close, keep your contractors closer.
Well, looks like we have a consensus.
However, my mom has actually had a guy paying discounted rent for 9 months now in exchange for work on a property. I don’t know how, but she managed to get an awesome guy in there and the arrangement has been working out so far. He’ll buy supplies or get free stuff from jobs, has his own tools/truck from his day job, and we work together on the weekends sometimes.
The house is a strange situation though - half is gutted and awaiting money, permits, and reno, the rest is pretty junky too. My mom lets him customize stuff as he wants, and he can have his band practice in the gutted area of the house. I definitely wouldn’t copy the way she has managed the investment so far, but she does have a tenant who’s paying reduced rent so I just wanted to give a counterpoint that it could work.
A guy who has approached asking about it could work out really well, or terribly.
I agree, I have a great tenant who is an electrician. I occasionally hire him for electrical projects, but not in exchange for rent, it is separate.
In my experience, it doesn't work out very well.
@Mike McCarthy Thank you for your concern Michael, but no lead pain has been found.