Light Renovation With Tenants in Place — Anyone Done It?

Question

Has anyone here done a light renovation on a duplex while keeping the tenants in place?

I'm looking at a duplex where both units are currently occupied, and I'm trying to decide whether it's better to renovate around the tenants rather than relocate them.

The renovation would be relatively light — things like paint, flooring, fixtures, possibly some appliances, cleaning, and minor repairs — nothing that should require gutting the units.

For those who have done this:

• How did the renovation go with tenants living there?
• Did you do one unit at a time?
• How disruptive was it for the tenants?
• Did you offer the tenants anything for cooperating with the work?
• Did you have any problems with access or scheduling?
• Looking back, would you do it again or would you have temporarily relocated the tenants?

How did the renovation go with tenants living there?

Did you do one unit at a time?

How disruptive was it for the tenants?

Did you offer the tenants anything for cooperating with the work?

Did you have any problems with access or scheduling?

Looking back, would you do it again or would you have temporarily relocated the tenants?

I'm especially interested in real experiences from landlords/investors who have actually renovated occupied units, rather than just general advice.

Thanks!

Richard F. · Answer

Not a good idea at all. If you are using contractors, it will likely cost you 30% more than working a vacant unit. If you are DIY, I still advise against it. You will spend a lot more of your time there. You must clean up daily and reset the next day, and keep track of all materials and tools that could walk off. Dust gets everywhere...in the tenants personal property unless you really go OCD with plastic sheeting and isolating your work space each day. You also expose yourself to damage or theft claims by the tenant, if contractors or you are in there while they are away at work. I never entered units if the tenant was not home, except in emergency cases. Vendors always were required to schedule with tenants, we would not provide keys for access.

What do you expect to get for the effort? It's not clear if you have owned this for a while or looking to purchase, but if you did not place the tenants, or even if you did, over a year ago, you need to re-evaluate their financial situation before raising rent, and you need to know what current market for an actual comparable unit is. In it's finished condition...how good of a finisher are you? Details matter...at least to quality tenants, so a poor job will not gain you much. Also, any time you just do a partial "update", you never benefit fully compared to a complete, cohesive, reno.

You would be better off updating your screening of both sides, terminate the weaker of the two, perform a proper rental prep, then offer the reno'd unit to the remaining tenant, either temporarily while you reno theirs, or permanently.

Dan Handford · Answer

Jory, the key is to treat an occupied renovation as an operations project, not just a construction project. I would define the exact scope room by room, give tenants a written schedule well in advance, group noisy or dusty work into the shortest possible windows, and confirm access before each visit. Flooring and paint can disrupt daily life more than they appear on a spreadsheet, so completing one unit or one room at a time helps. A small accommodation, professional cleaning, or rent credit can also preserve goodwill when the disruption is meaningful. I would avoid opening multiple unfinished areas at once and keep a contingency for delays caused by access. Before starting, confirm the lease terms and local notice requirements with the appropriate local professional.