Tenant wanting to do bathroom renovation?
Member since 2020 · 12 posts · 2 votes
Hi All,
I am a relatively new landlord. I have a duplex in NH and the new tenant has asked if she could do renovation in the bathroom in her unit. She wants to either move the toilet from one side of the bathroom to the other, OR swap out the vanity for a pedestal sink. I believe that this would improve the space for future tenants, but my first inclination is that this is too complicated and opens up a "can of worms". She has said she'd be willing to spend up to $1000 (her money and not be reimbursed) on the work, including fixing the laminate on the floor, painting the wall, etc.
Does anyone think this is a reasonable thing to let a tenant do? or are there legal issues I'm not aware of that could affect me?
thank you for all advice!
Leah
Hi All,
I am a relatively new landlord. I have a duplex in NH and the new tenant has asked if she could do renovation in the bathroom in her unit. She wants to either move the toilet from one side of the bathroom to the other, OR swap out the vanity for a pedestal sink. I believe that this would improve the space for future tenants, but my first inclination is that this is too complicated and opens up a "can of worms". She has said she'd be willing to spend up to $1000 (her money and not be reimbursed) on the work, including fixing the laminate on the floor, painting the wall, etc.
Does anyone think this is a reasonable thing to let a tenant do? or are there legal issues I'm not aware of that could affect me?
thank you for all advice!
Leah
Moving a toilet from one side of the room to another can't be done for $1000. You have water coming in to feed the toilet and drinage going out. It requires ripping the wall out, running new waterlines and drainage in the bathroom, and repairing. The drain has a vent pipe that goes up the wall and it may need to be relocated as well. Sinks and tubs and toilets have required "space between fixtures clearances" you have to abide by when installing new fixtures. It would have to be inspected to be sure it's done properly.
To remove a vanity and replace with a pedestal is the cost of the pedestal, cost of replumbing under the sink and fixing the floor to look natural and might be able to be done for $1000 depending on scope of work and what mold/rotted wood issues arise in the walls and floor.
She will have her friend do the work (a qualified plumber won't do that extensive of work for $1000). So, make sure you get a copy of the friend's plumbing license, and insurance for your files. The work may not be covered under your insurance policy if it leaks in the furture, if it isn't done by you or a licensed plumber and inspected.
I recommend a hybrid approach here. Taken in part from Mike Butler's Landlrding on Autopilot book.
1st, only consider any part of this if she's a stellar tenant and one you want in your property for a long time. If not, only consider painting, nothing else.
Explain to her that certain requests are not feasible (moving toilet), but that you would like to work with her to freshen up the bathroom in "her home". Have her pick out a paint color from your paint supplier and some LVP from your flooring supplier. This will be a good project for her and she will feel ownership in the final result (meaning she will like it more because she got to pick the colors and such). Give her some restrictions (certain product line, nothing too bold, and that you can veto her selection if needed). It doesn't cost much to replace a pedestal with a vanity at the end of her tenancy if needed, so indulge her on that.
Now, explain that $1000 toward the project is a good portion, but not all of it. And to protect both of you on this, you'll require a 2 yr or 3 yr lease contract. Tell her this means you can't kick her out "just because" for 3 years and protects her if you were to sell the property from the next owner.
Finally, consider, instead of her paying $1000 extra, increase her rent by $80/mo with an automatic 3%raise every year in your new 3 year lease. I think this plays out better financially for you.
I dont agree with the others that you don't want her feeling ownership in your property. Of course you do...of she feels ownership she will care for it and treat it like it's her own. Get her to stay 3 years and you've just avoided turnover costs for 3 years.
Oh, I wouldn't do this in a multifamily as word will get around and you don't want that.
Thank you Joshua Morgan, I appreciate the thoughts.
Looks like you've got a solid baseline of opinions. I've done a couple different things with tenants (them doing work, them paying me for work, them hiring contractors, etc). What I've seen to be most successful is to get a quote for the work that I want done that also meets the tenants goals. Bring that to the tenant and either explain how what they're wanting isn't as simple as they want so I am not willing (this keeps the relationship strong so they don't feel totally ignored) OR outline that I am willing to improve but I want to make sure the repair is done with licensed/warrantied/insured workers. If the improvements were $2,500 and they were paying for $1,000 I'd make sure that was paid before I began work.
Paperwork wise make sure you cover these things:
- is rent discounted while work is complete?
- is rent increasing or decreasing when work is complete?
- I've heard some states will consider tenant improvements to be equitable interest... Oklahoma isn't that way so I can't really speak to it but I'd cover your bases on that
- timeline, delays, etc.
- tenant must be out of the way of contractors (we had a contractor who couldn't get the work done because her kids and dogs were constantly in his way)
If I think of anything else I'll add to the post!
Protect yourself from this 'small request' headache and future problems. Never let a tenant do renovations. Its a lot of work moving the sewer line from one location to another, its very costly and time consuming and it does open up a can or worms. $1K if not going to be enough. Tell her is going to cost about 10k, (just to scare her away).
1k to replace the vanity and paint is possible, just make sure its done by someone who knows what they are doing to make sure there is no leaks and p-trap installed correctly.
@Leah Woods what did you wind up doing?
Seems like a pretty expensive quote. Would not recommend it. Recently had my home remodeling Baltimore by Complete Renovation Services and it was great!
Complete Renovation Services
1431 S Hanover St, Baltimore, MD 21230