Tenants doing improvements

Rental Property Investor · Conyers, GA · Member since 2017 · 51 posts · 14 votes

Got a tenant that wants to update the kitchen (works for a company that does kitchen remodels).

Claims he has surplus countertops and other materials to improve it. Says he doesn’t want anything for it, like lower rent etc. he just wants a better kitchen than what is currently there. That it will stay on the property, if and when they move out. No cost to me.

What do you all think? Let him do it? Or tell him no?

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Brian Cole

Investor · Pensacola, FL · Member since 2017 · 17 posts · 13 votes

Sounds too good to be true,

I would let him do it under the conditions that these updates are approved by you and maybe some kind of written agreement that the updates actually cost you nothing. No pink cabinets and no coming back later saying you owe him.

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Brian Cole
Investor · Pensacola, FL · Member since 2017 · 17 posts · 13 votes
6y
Sounds too good to be true,
I would let him do it under the conditions that these updates are approved by you and maybe some kind of written agreement that the updates actually cost you nothing. No pink cabinets and no coming back later saying you owe him.
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Joe M.
Erie, PA · Member since 2018 · 413 posts · 348 votes
6y
Not to that extent, but had a guy paint a few rooms...looks nicer than before at no cost to me. If hes a trustworthy guy and knows what hes doing, have at it
1 Reply
Michael King
Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
6y
One tenant just did some yard work - mulch, plants, rocks, etc, it looks really good! Cost to me is $260 for the materials. I'm going to give him a little bit more though, considering these crazy times. His next project is some internal painting - which makes me shudder a little but I'll let him have at it.
You have to remember that tenants want to live somewhere nice too, and if they plan to be there for a while, they get big dreams about it 'updating' it.
A kitchen rehab is a big undertaking, but if you can get the free part in writing and monitor the workmanship, go for it.
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Alf Holst
OP
Rental Property Investor · Conyers, GA · Member since 2017 · 51 posts · 14 votes
6y
@Brian Cole
That’s my worry. Might be too good to be true.
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Alf Holst
OP
Rental Property Investor · Conyers, GA · Member since 2017 · 51 posts · 14 votes
6y
@Joe M.
Background check and credit check are all good. So I’m just curious if others have had similar requests.
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Alf Holst
OP
Rental Property Investor · Conyers, GA · Member since 2017 · 51 posts · 14 votes
6y
@Michael King
I have our text and email exchanges saved. But definitely put something in writing, and check out the materials they want to us.
I’m leaning towards letting them do it. Might be an incentive for them to stay longer and continue to rent.
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Joe M.
Erie, PA · Member since 2018 · 413 posts · 348 votes
6y
@Alf Holst I mean, have you talked to the guy?
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Joe Cassandra
Rental Property Investor · Woodstock, GA · Member since 2017 · 517 posts · 772 votes
6y
Confused with the hesitation.
What would be in it for him if you're not paying anything? He rips out your kitchen for fun? :D
You could just ask to have the plumbing and electrical checked by professionals...
But I see minimal downside.
Just make sure the style fits with the neighborhood and isn't some nutty design no one else would like.
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Todd SnyderPro Member
Rental Property Investor · Wooster, OH · Member since 2018 · 44 posts · 18 votes
6y
Get a contract signed with him saying he MUST finish any work he starts and be approved by you or he will have to pay for a contractor to come and finsh his work! And that it's no cost to you.
Kitchens are expensive the last thing I would want is to have my tenant say he's going to improve my kitchen and demo it and never finish it before he moves out! Treating you tenant as you would any contractor in situations like this is key!
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Corey Hawkinson
Rental Property Investor · Bloomington, MN · Member since 2019 · 404 posts · 542 votes
6y
@Alf Holst I had a tenant that worked in construction. He put cabinets in 2 of my garages. He also significantly upgraded one of the garages because he worked on cars. It was great for me as a landlord. However, those were garages, not kitchens. I would hesitate more on a kitchen. I wouldn’t want him to start working and then decide to move out or any other issue occurs.
At the end of the day my decision would depend on how bad the kitchen looked currently. If it was in need of an upgrade, I would let the tenant put in new cabinets. (With appropriate written documentation about the arrangement.)
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Jonathan W.
Los Angeles, CA · Member since 2019 · 512 posts · 301 votes
6y
@Alf Holst if you go with anything. Get it in writing
The last thing you want is a lien from a guy who occupies the house.
Does sound to good to be true but it sounds more legitimate then any other tenant improvement story. Tread carefully
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Jesse Whitmore
Austin, TX · Member since 2019 · 35 posts · 18 votes
6y
@Alf Holst I would get the agreement in writing. And make sure you would pay for the changes yourself and not just something you’re ok with since you’re not paying.
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Alf Holst
OP
Rental Property Investor · Conyers, GA · Member since 2017 · 51 posts · 14 votes
6y
@Joe M.
Yes. We have talked on the phone about it. I mentioned the email and texts because that’s a way to keep a record of it. Our phone conversations were about it too.
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Alf Holst
OP
Rental Property Investor · Conyers, GA · Member since 2017 · 51 posts · 14 votes
6y
@Joe Cassandra
He just wants nicer countertops. The ones on there are decent. Says he has surplus countertops.
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Alf Holst
OP
Rental Property Investor · Conyers, GA · Member since 2017 · 51 posts · 14 votes
6y
@Todd Snyder
That’s a good thing to have. Get him to agree to pay if I have to redo it. Definitely add that to a contract.
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Anthony Wick
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
6y
@Alf Holst
I would almost always say no to tenants doing work. They start to feel like they can do whatever they want, without checking with you first.
In your circumstance, you’d need to vet him like any other contractor. Does he really do good work? And you should have a written agreement that leaves nothing to chance, including specifically stating exactly what work is to be done, and that this agreement in no way approves any other work to be done by the tenant in the future.
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Anthony Wick
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
6y
@Joe Cassandra
The downside is he might actually do really lousy work. You ever have a tenant paint? Most people stink at it. And this is a much bigger project than just painting a bedroom. Your “free” work may end up costing you $5,000 to fix it. The tenant needs to be vetted, just as if you were hiring out any other contractor.
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Al Pat
Rental Property Investor · Atlanta, GA · Member since 2016 · 325 posts · 253 votes
6y
@Alf Holst I wouldn’t be too concerned but will ask for pics before he proceed. I have a tenant who work for a renovation company and he does constant improvement of the duplex he lives in. Just recently he added hardwood floors to bed rooms from leftovers he had at a large job. It is very nice looking floors. He showed me a sample and I was like wow...I looked up the price and it was worth it - no cost to me. He paints the unit every 12-18 months, ceilings, walls, trims etc. Best kept unit I have.
So, with that said, I would let him do the improvement.
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Mike Giallanza
Property Manager · Centennial, CO · Member since 2019 · 95 posts · 63 votes
6y
Get his insurance information. Treat it just like you would with any other contractor. Maybe even a lein waiver signed by him too.
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Todd Powell
Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
6y
@Alf Holst wow, if he is legit, it sounds to good to be true. I would feel compelled to give him reasonable rent break so free is too good to be true. Again, only if a legit guy and not a wanna be hack job.
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Account Closed
Member since 2020 · 18 posts · 8 votes
6y
@Alf Holst
True to be all in writing, I usually have it on the lease for improvements parts for liability as long as you are able to approve and check in to see progress too and that comes out of their pocket.
The next step is let him. I had tenants who work in flooring, and updated floors to feel comfortable. You have to understand that it’s their trade and for some landlords is seems like hard work and impossible to be true, but they have the resources and the skills to do it fast and cheap. It’s a hobby for them basically. Tenants with construction trade are the best. I’d say if you have a potential tenant in an application processes with house remodeling as job, you are in for a blessing.
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Reggie ReardenPro Member
Rental Property Investor · Aiken, SC · Member since 2019 · 129 posts · 44 votes
6y
One of my current SFH tenants have painted, changed a vanity, and added a cover on the back porch. Like what most everyone else stated, I'd let him go for it! It can most likely only benefit you. Just make sure you trust him and you have a positive gut feeling. I believe if a tenant is doing upgrades, they are going to be long term in your place. This is from my experience.
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Jose Rojas
Member since 2020 · 8 posts · 1 vote
6y
Hey I live in buffalo New York, I’m going to be putting my house in my name soon from my grandmas name. Can any recommend lawyer or site for the deed change. House is paid off , I’m also looking for tax consultant to deal with. My first house. Many questions. Thanks
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Michael Noto
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
6y
@Alf Holst As long as he is just doing the countertop then let him do it. Tell him you need to approve color and ask him to provide pictures of countertops he installed. Put something in writing and you should be all set. Do not let him do anything with cabinets or plumbing.
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y
1. Verify his ability before taking any steps. Just because someone owns a pipe wrench doesn't mean they're a plumber. He may work for a company that renovates kitches...but maybe he's the janitor or an administrator. You need proof that he's capable of doing what he says.
2. Get it in writing and be very specific. What work will be done, exactly? What materials will he use? What happens to the improvements when he moves out (stay there, put the old stuff back, etc)?
3. Set a deadline and enforce. Don't leave it open-ended or he may start the job and never complete it.
4. Verify completion! You have got to inspect or at least get pictures and/or video to show that the job was done in a workman-like manner and to your satisfaction.
5. Have consequences. If he fails to complete the job, or does it poorly, what are the consequences.
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