Hi all! I need some advice. This has never happened to me before and I'm not sure how to handle it. When I went today to have my current tenants sign another one-year lease, I did an inspection of the property. To my surprise, they built a kitchen (electric stove, sink and refrigerator) in the downstairs wash room. When I asked where the washer and dryer was, he said upstairs. They had redirected the plumbing and electrical and installed the washer and dryer upstairs!! Now, I'm no dummy. Clearly, if you are installing a kitchen/kitchenette in the basement you have plans to move someone in (not on the lease). That's actually the least of my concerns. I'm concerned that if something happens to the property (electrical fire, flooding, ...) as a result of these new installations, I will be left S.O.L. What are my steps to protect myself and my property? I'm thinking step one is to get someone out to ensure the work is up to code AT THEIR EXPENSE...Please help! *Also, I don't want to evict them because I'm getting top rent for the area and they always pay on time...through covid and all...

@Tomiko Graves - These situations always suck. One of the key things to do here is to keep calm and avoid creating any enemies. Explain that they broke the rules and why those rules exist. Explain to them that it's YOUR property and YOU don't want a second kitchen in there. I would then require them to remove it at their expense, and then I'd verify it was done (at their expense). Put everything in writing and give them a time limit and a fee if it's not done in time. Explain that you'll send in someone to do it (which you'll charge them for) and it'll be much more expensive than if they did it themselves. But keep your cool. Stay calm. Be nice, but firm.

Wow. Thanks for all the suggestions and input! After careful consideration, here's what I did: I called and sent a follow-up email stating: 1) Restoration has to happen by Oct. 17 (2.5 weeks from now) 2) Inspector (of my choosing) has to come out once restoration occurs (at their expense) 3) Quarterly inspections will start (Feb, May and Aug) I decided NOT to evict as long as restoration is done by Oct. 17. I let them know that the violation warrants termination but because of .... I'm letting them stay. I did say that if anything like this happens again, the lease will be terminated. I'll let you know what happens by Oct 17... Thanks again everyone!!

I am all about finding opportunities, but I think it is a bad idea to partner with people who go behind your back, violate a contract and don't follow permit or zoning laws. They have no common sense and can't be trusted. As far as changing the lease to protect her for subleasing - it doesn't really work that way. When you allow subletting, you give up rights to select a tenant, but you keep all the risk at the property. If the property burns to the ground due to an unpermitted kitchen and unpermitted living space, the insurance company can refuse the claim.

So to do this they had to run another 220 line for the dryer to the second floor? You have to get that inspected. All the electric wiring that was done and plumbing. In addition this might not even be allowed in your area to have this kitchen. In our area the building inspector would have you pull the stove. I would arrange inspection and issue a cure or quit. Have an electrician in to decommission the stove outlet. Did they devalue the house by putting the washer dryer in a bedroom or similar? The main problem is that they viewed this as something they could do without consulting you. This means that they view the property as something they can just modify. If you let them stay you need to modify this view. Believe me this isn't the sign of a good tenant. Had they consulted you first ok, but modifying something this significantly that they don't own.

What do I do?!?! - Tenants installed kitchen in basement!!

Dutch Langley

Flipper/Rehabber · Matthews, NC · Member since 2019 · 198 posts · 239 votes

6y

What does your lease say? Most say that no "improvements" can be made to the property without consent of the property manager/owner.

10 Reply

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

6y

Wow. What was their response when you asked why this was done? Yes have it inspected at their expense. Tell them in no uncertain terms that they can not sublet or rent out that space. What happened to everything else that was in the basement bathroom (tub, toilet, etc)?

4 Reply

John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

6y

At this point you should get it inspected to make sure it is to code.

If it meets code you could leave it this way till they move. Then have them restore it they way it was using a licensed contractor or accept it they way it is.

If it doesn't meet code you can have them pay a licensed contractor to make it to code or have them restore it immediately to the way it was.

A tenant that takes care of the house and pays market rent on time is worth trying to keep.

So get it inspected and then decide which way to go.

I'd let them know you are going to step up inpections. This way you'll know if they try and move someone in that is not on the lease.

21 Reply

Charley C.

North of Houston · Member since 2018 · 349 posts · 181 votes

6y

The tenant still needs to respect you and the property that YOU own. Make that clear. At least that.

It sounds like you don't mind what they did but just concerned about the quality of work, then get it inspected at their expense..

The pattern of disrespect will repeat. Next improvement may not be improving anything you wanted if you just let this go. What next? you are there, you know them better than I do so my advice from here is only so good. I would follow up with some more written agreements saying they will never ever do that again, something like that.. don't let what they did be the status quo

11 Reply

Bill HamptonBusiness Member

Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 977 votes

6y

I would recommend speaking to a lawyer.

After the changes are inspected, if it's up to code you have to decide if you want to keep the changes.

If it's not up to code, have them uninstall everything and make it the way it was, at their expense.

I would evict them for making those changes without your permission. You don't know what they will do next.

You shouldn't worry about finding a new tenant. Just make adjustments to your lease. Make the lease month to month, require a higher deposit, confirm their bank balance in real time by having them login to the account in front of you, add provisions to their lease that require them to provide proof that they have contacted rent assistance organizations if they lose their job, etc.

Good luck.

404-482-3170

Hampton Tax and Financial Services LLC4.7106 Reviews

Website View Page

2 Reply

Tomiko Graves

OP

Washington, DC · Member since 2018 · 65 posts · 35 votes

6y

@Dutch Langley the lease explicitly states not improvements without permission from landlord.

1 Reply

Tomiko Graves

OP

Washington, DC · Member since 2018 · 65 posts · 35 votes

6y

@john

@John Underwood Thanks! I'll definitely start calling tomorrow to identify someone that can come in to check that it's up to code. Thanks for the other parts too, regarding having them restore it as it was prior to them moving in or keeping it. It actually may work in my favor keeping it!

0 Reply

Rick BassettBusiness Member

Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes

6y

@Tomiko Graves , it depends. Are the countertops quartz? 😀

475-900-3100

Bassett Property Management5108 Reviews

Website View Page

6 Reply

Darius Ogloza

Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes

6y

@Tomiko Graves Since you do not want to evict (and, presumably, want to stay on good terms with paying tenants), you may want to consider biting the bullet and asking a licensed electrician to examine the work - opening drywall where necessary - and take the cost out of their deposit. Let them know you are not pleased and that you are doing that. Trying to get them to pay the cost out of pocket may not be worth the hassle/damaged relationship.

3 Reply

Tomiko Graves

OP

Washington, DC · Member since 2018 · 65 posts · 35 votes

6y

@Darius Ogloza that's a good idea to take it out of the security deposit! I'll ask their preference.

2 Reply

Tomiko Graves

OP

Washington, DC · Member since 2018 · 65 posts · 35 votes

6y

@Rick Bassett LOL

0 Reply

Owen SchwaegerlePro Member

Real Estate Broker · San Luis Obispo, CA · Member since 2016 · 180 posts · 69 votes

6y

@Tomiko Graves another option could be to give a notice to correct or quit or a similar form. Technically, they are in breach of the lease agreement. There are two types of breach, curable and incurable. An incurable breach would be one where it cannot be fixed, like if they got a pet when the lease says no pets they could get rid of it and cure the breach.

This means that you can give them a notice to correct the breach or quit the lease. It sounds like you’d like to meet them, but I’d be concerned they don’t respect you moving forward if you go easy on them.

3 Reply

Matt M.

Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes

6y

@Tomiko Graves

To me, this is a huge deal. 10 day notice to cure, or evict.

2 Reply

Adam Martin

Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes

6y

I agree with some others that this is a big deal. Even if it does add value these are major altercations to your property. If you choose to keep it make sure you have it inspected at their expense and make sure you get in writing that this is a permanent fixture and the expectation is that they not alter the property back. Do they have an older child on the lease that may be making it their residence downstairs where this makes sense. If not I would be willing to bet they are either subletting or have plans on renting your basement out as a STR. To look at this in a positive light though they are likely to stay for a while and are just trying to treat it like it was their own, remember though that treating it as their own is not always an ideal situation. Personally this is not something I would tolerate, and certainly not someone I would put on a long term lease.

4 Reply

Jin Kim

Real Estate Agent · Santa Clarita, CA · Member since 2020 · 39 posts · 36 votes

6y

Hi Tomiko, it looks like you are getting good advice from other people on this forum. A suggestion I would make is to either do quarterly inspection or semi annual inspection of the property. Semi annual inspection might be good because it would be during the time you change the air filter on the property. That would be a way to stay on top of your tenants to make sure they are not doing anything to the property that is not allowed.

3 Reply

Annie Johnson

Realtor · Seward, AK · Member since 2017 · 136 posts · 79 votes

6y

I don't have advice! Just wanted to say this is crazy! Back in the day when we rented a condo we put knobs on the cupboards below the sink so we could put a baby lock on it and our landlord freaked out at that. This is definitely a big deal and a tenant shouldn't be doing any electrical or plumbing to the house without your involvement. I hope everything works out!

3 Reply

Vicky L.

Investor · Simi Valley, CA · Member since 2019 · 46 posts · 35 votes

6y

@Tomiko Graves doesn't a permit have to pulled first - before work is started? Plans have to be submitted before permits are granted. If no permit, no inspection... but maybe a fine? Please post your result.

3 Reply

Nam Trang

Investor · Seattle, WA · Member since 2020 · 106 posts · 89 votes

6y

Does the lease say no improvements? if so then, you can ask approach a lawyer or take it out from their security deposit as a "damage to property".

0 Reply

Mary M.

Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes

6y

re your concern about flooding or electrical fire - your insurance would cover those loses.... but other than that I agree with the others, get work inspected then decide what to do. Oh and fwiw I immediately thought “airbnb” ......

2 Reply

Etta Stewart

Toney (Huntsville), AL · Member since 2020 · 7 posts · 15 votes

6y

WOW! I am just starting the learning process to become and investor and this just about scared me silly. Thank you for posting about this. And thanks to everyone chiming in with advice. This is a great learning opportunity for me. Please post your next steps and end results. I eagerly await more insight.

3 Reply

Laticia Braxton

Real Estate Consultant · Joppa, MD · Member since 2015 · 218 posts · 178 votes

6y

I suggest that you make sure the changes meet code and were performed by a licensed contractor. Demand to see the service agreement, the invoice and the contractor’s certificate of insurance. Then, have your contractor check the work completed to verify everything that was done and advise you about code requirements. Once you’re satisfied that your property is not at risk for fines and/or damage, send a strongly worded certified letter to your tenants, notifying them that they are in violation of the lease. Cite the clause in the lease that speaks to what they did and include a sentence that says that any other lease violations will result in automatic termination. Do quarterly inspections and let them know you will be doing so in the letter.

Considering the fact that they are otherwise great tenants, I would not evict, but I would word the letter in such a way that they are aware that this is their one and only allowable offense. As someone else suggested, if you don’t use this as an opportunity to reprimand them and reassert yourself, this will probably not be the last time they ignore the lease and do whatever they want to do.

I hope it all works out in your favor.

Laticia

4 Reply

Jaquetta T Ragland

Real Estate Agent · Winston Salem, NC · Member since 2014 · 486 posts · 303 votes

6y

@Tomiko Graves wow they were bold 😧. Let us know how everything goes once you get an inspected. Also I would let them know moving someone else in goes against your lease.

0 Reply

Corby GoadeBusiness Member

Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes

6y

The reality of the situation is that you have to start the eviction process. Your lease says they have to check with you first- this isn't exactly the same as painting a room, this is a major issue and there could be huge liabilities for you. If you aren't going to enforce your lease when there is a major violation, then what is the point of having a lease? What does it teach your tenants if they know that you won't stand up when they violate the lease?

I see that you are concerned about getting rid of them because they pay on time. The reality of landlording is that MOST people pay on time. We chat here about the nightmare situations, but no one talks about the simple, passive experiences they have. What makes you think you can't get another tenant in there who won't pay on time? There are great tenants everywhere, and they people you have now? They aren't that.

Best of luck!

4 Reply

Tomiko Graves

OP

Washington, DC · Member since 2018 · 65 posts · 35 votes

6y

@Laticia Braxton Thanks so much! I am crafting an email now that will follow a phone conversation. And I do agree that I need to send a strong message that any future violations will result in termination. The good thing is I have NO problem with sending strong messages! I also like writing in the letter that quarterly inspections will begin as a result of this violation.
Appreciate your advice!

3 Reply

Brian LucierPro Member

Property Manager · Fitchburg, MA · Member since 2012 · 146 posts · 201 votes

6y

Guaranteed no permit was pulled.

On the permit application there are areas where the property owner needs to sign the permit, the contractor needs to sign the permit, the contractor needs to put their license and insurance policy numbers, and estimates for the repairs and plans submitted to determine the scope of the project which will in turn calculate the permit fee. City Hall also has a process in place to verify the taxes, water bill, and other municipalities are paid and current before they will issue a valid permit.

You should also be able to go online in your city or county to see permit records online. Here you can pull all of the present, past, or open permits for ANY property. That alone, is a really great tip for newbies and anyone looking to buy a property. Pull the permit records before making the offer. Find out if those fancy renovations were permitted and up to code first. Or, the inspectors, contractors and re-rehab costs to fix the issues could eat your lunch.

5 Reply

What do I do?!?! - Tenants installed kitchen in basement!!

What do I do?!?! - Tenants installed kitchen in basement!!

Most Popular Reply

62 Replies