Renovate Now or Later?

Question

My wife and I are debating whether we should update our tenant's bathroom now or wait until the end of his lease. I want to update it soon and increase the rent when its time to renew the lease. My wife on the other hand wants to us to wait until his lease is over until we update the bathroom. What are your thoughts? I rather do it now then wait later but I would like to hear your thoughts. Thank you in advance.

Linda S. · Answer

The question is, are you getting a new tenant after his lease ends, or renewing with him?

A) If you aren't renewing with him, and say his lease ends in February, I'd personally wait until February to fix the bathroom.   It will be MUCH easier for you to renovate when the unit is vacant, and you can do it on your own time, much smoother and you won't have to worry about cleanup in the off days.

B)  If you ARE renewing with him, his stuff will be there regardless of now or later, if you have the funds/time, suck it up and do it now.  He'll enjoy the updates now for a longer time, and it won't look sketchy in that you are all the sudden doing stuff to get more money.

Account Closed · Answer

I would let the tenant know that at the end of the lease the rent is going up and that the new bathroom remodel will be taking place immediately. That will make them feel like they are getting something in return for the increase in rent. I would also put them in a decent hotel during the remodel.

Ayodeji Kuponiyi · Answer

Linda D. mentioned, I'd tell him the rent is going up if we renew and if he doesn't want to stay no problem, at least turnover will be faster with the bathroom already renovated, leaving just painting and cleaning the carpet to make the unit rent ready.

JD Martin · Answer

^ I concur with this all the way. If you have some feel for if he's staying or leaving it should give you some guidance. If you are 11 months away from the end of his lease, I would wait. If you are close, you should have some idea if he's leaving or not, and if he's not leaving one time is just as good as another.

Renovate Now or Later?

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