Tenants doing improvements

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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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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  • Rental Property Investor · Conyers, GA · Member since 2017 · 51 posts · 14 votes
    6y

    @Reggie Rearden

    I was thinking the same, in terms of staying longer. If they make it more like their home, they may want to continue living there.

  • Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
    6y
    Alf, I had a client who let a tenant do some maintenance work to offset rent. The tenant claimed to have been injured during the work. The Tenant got an attorney who filed a Workers Comp. claim. Fortunately they miss filed it. Then they filed a liability claim. The owner had no Workers Comp. so he had to hire a lawyer to defend it. The Liability claim was defended by his Insurance. Turned out to be a bogus claim but it still cost the owner $$ for the Workers comp attorney. Your situation is a little different but I would still ask both your Attorney and Insurance agent about it.
  • Matthew Irish-JonesBusiness Member
    Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
    6y
    Originally posted by @Alf Holst:

    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?

    I would tell him HECK NO.  If he wants to provide proof of insurance, a W-9, an official quote, and do it the right way sure... If its a back end deal, now way 

    Irish Jones Realty4.947 Reviews
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  • Member since 2020 · 4 posts · 0 votes
    6y

    Not seen much good come out of this type of situation.  I have seen this give tenants a green light to the whole I can now do whatever I want to the place.  

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