Tenants requesting another bathroom. Creative solutions?

Question

Before my tenants moved in I said at some point down the road I'd love to put in a 2nd bathroom, but it wont be for another year at least. I have a message from one of the tenants asking politely if it's something I'd be willing to move forward on (it's only been 2 months), but understands if I can't. Instead of telling them to kick rocks, have you guys ever worked out a deal where you would improve the property at a tenants request, but in exchange amend the lease to raise the rent or have them pay a portion of the project, etc. ? What kind of creative solutions could I propose. That way I can say, "no, but here's what I can workout with you if you wanted one sooner..."

Scott M. · Answer

I hope you learned the lesson about telling tenants about potential upgrades? While I don't have any creative solutions for you I would advise everyone else reading this post to learn from this mistake.

Bill Ward · Answer

I would never expect them to pay for any part of your remodeling. If you are willing to do it now and raise the rent x money, you could explain that you were planning on doing it next year and raising rent x dollars, and see if they would be willing to a rent increase when it's complete. Otherwise just say no it's not a project you can undertake right now.

Colleen F. · Answer

@John Larson I can't really offer a creative solution. However, I can see by your email and what you have said to the tenants you are a sharer. Share less is my best advice with tenants. It keeps you out of trouble. It would have been enough to say to them we aren't prepared to add a bathroom now, sorry if I mislead you into thinking it would be done soon. We will keep you posted about any property improvements we have planned.

Joe Martella · Answer

You learned your lesson. I am a pessimist and always looking at the complete negative side of things. The question is: Can the tenants say they rented the place because you misled them that there will be a second bathroom added during their tenancy? If so, the drama will start. If they ask, I would let them out of the lease.If you want to give them a bathroom and are prepared to do it now, I would get comps for rentals with 2 bathrooms, and get an addendum signed that once the bathroom is functional the rent would increase to the rents of a 2 bathroom house. The argument (not a lawyer) would be that the lease is for a 1 bath house and now it is a 2 bath house, so the current lease will be voided. I would also negotiate a longer-term lease with built in increases. Either they will say yes to the terms or not bother you anymore since they know your expectations. I had a tenant ask me to put solar panels on the house because they were going "green." My response is that I would want a lease for the term of the solar panel lease which will incorporate the cost of the panels and regular increases every years. If they were ready for a 20 year lease, then we can do it. The conversation ended.

John Larson · Answer

Awesome Feedback thank you! Lesson learned for sure. I shouldn't have mentioned anything. They are not expecting anything without rent being increased, but definitely putting the feelers out there on it. So before I did anything, I wanted to post about it and get some other perspectives. I appreciate it everyone!

Bruce Woodruff · Answer

Maybe approach it backwards......ask them how much more rent they'd be willing to pay for an extra bath? Let them pick a number. If they mumble and stumble around, or say $10 a month, then you have your answer....

John Larson · Answer

So here's my response. They totally understand and appreciate the thoughtful and insightful response."Hey ____! Thanks for asking and I can explain the situation. I know its tight with 1 bathroom. I currently live in a house with 1 bathroom, 4 people and would love to add one on for ourselves as well (better than what I had growing up though...raised in a house with 6 people 1 bathroom 🤦‍♂️🤦‍♂️) It's not the greatest, but it was the expectation and the best we could do at the time.It's something I'd love to do at some point, I just cant right now. Something I would consider in a year, maybe 2, when things stabilize and I'm able to properly fund it and reflect in the rent rate. I'm just still paying back on work that was done to the house previously, and working to build the proper reserves for potential repair/maintenance expenses on the property before any big upgrades like that can happen. Want to make sure I can take care of what's currently there before I overleverage myself on anything else. I hope that makes sense 🙏. If I had another property at my fingertips with 2 bathrooms I'd definitely give your family first dibs, until then I'm just trying to keep what I have, catch up, and keep saving until other improvements can be made.

Bruce Woodruff · Answer

Get a firm bid for the remodel. Let's say it's $15k..... how much would you have to raise the rent in order to recoup this in a reasonable amount of time?Please tell me you didn't imply that they would get a new bathroom for no rent increase.....

Sylvia B. · Answer

There is no way I would consider doing that extensive of a remodel job with tenants in the house. Did it once, and learned my lesson. It was a nightmare. If you do decide to add a bath, wait until you are between tenants.

Scott M. · Answer

Colleen is spot on. I read your letter @John Larson and then scrolled up to your prior message where you said "lesson learned for sure".But then in your letter you say "Something I would consider in a year, maybe 2". High likely hood this will be read as 100% this will be done in a year for you. Need to stop telling them. You told them upfront and 2 months in they are bugging you about it. Now you said it again, they will simply be bugging you again.Say less.