Apt Upgrade Long-Term Tenants Living There?

Question

I have owned an owner occ 3-fam since 2017 (only rentals owned) and typically do work and upgrades in between tenants.  In MA.

However one of the tenants has been in there for almost 15 yrs.  I'm being told last time unit was painted was 2008 and she doesn't know when carpets were replaced but was told by old landlord in 2008 they were due but they never followed through.

Almost 2 yrs ago I had a pro painter budgeted and lined up to paint 100% of walls trim and ceiling in entire unit and she ignored at least 1/2 dozen messages by me to coordinate.  Now she has complained to me at least 3 times in the past month.  Wife and I offered to paint it ourselves and offered a week in June (with 1 week notice) and a week in July (with 5 week notice) for us to go in and paint ourselves since pros won't be available for months from now.  She said it was too short notice.  She also wants carpets replaced.

Mind you she has been smoking in there for her entire stay and periodically I need to remind her of our no smoking lease addendum she signed and it gets better for months before inevitably I start smelling it again in my unit.  So overall I haven't been in a rush to spend money there only for her habits to destroy it.  That said, she has been there a very long time and will likely remain there for a very long time.  We have a month to month lease set up and I haven't increased rent since buying it.  Her rent is maybe 2/3-1/2 of area market rents - easily cheapest around.

How is this handled?  If she wants full pro paint job + flooring replacement I imagine unit has to be 100% emptied for 3-5 days? (2-3 for painting? 1-2 for flooring?). Mind you she NEVER leaves for more than a few hours. Literally zero vacations or nights away since I bought, and she works night shift and I never see her in person.

Is it unreasonable for me to expect her to rent a Pod, have it dropped in our yard to empty all her stuff into? Plus also vacate the apartment and take a vacation/stay with friends/area hotel at her own expense? Are these storage/accomodation expenses typically covered (or requires to be covered) by landlord? Cost share?

What is the playbook here?  I obviously want to follow sensitive MA landlord/tenant laws, and also be a good reasonable person.  I'm in need of advice from seasoned landlords/property managers who have navigated similar situations.

Thanks in advance!

Bjorn Ahlblad · Answer

Congrats on the rentals you own! Doing that moch renovation with the tenant in place will not have a happy ending. The tenant does not seem to really care anyway. Leave her alone and forget about renovating with her there.

What you should do is start raising her rent 5% at a time, once a year-maybe twice. Your goal is to get closer to market. Maybe she will leave and then you can do the reno, raise the rent some more and get a new tenant at market. Enjoy your success.  All the best!

Colleen F. · Answer

@John P. She is smoking in the unit. This is going to a hard paint job. Think wash , prime, 2 coats paint. Think cigarette burns  and smoke smell in your new carpet. I would be inclined to raise rent and non renew.  If you think she can be turned around for me it would be at a higher price.  I wouldn't do carpet with a smoker.

Alinda Saffell · Answer

Hey there,  I've got long term tenants also, though I feel fortunate we have neither carpeting nor smokers for tenants!  I wouldn't like such a passive-aggressive tenant, smoker or non.  I suspect that if she is prickly now, she won't eventually get sweeter.  I'm with the non-renew camp.  I've got similar long-term reno and maintenance I feel is coming up and will be non-renewing some of my tenants, too.  A lot of things go south over 15 years!

John P. · Answer

@Bjorn Ahlblad

Thank you for the reply - not an unreasonable stance.

Given the lack of coordination with the opportunities I've offered I would agree with your sentiment.  Yet she has begun to repeatedly ask me about it, referencing her poor experience with the last landlord (for not painting and replacing floors over a decade ago, and of course they're only worse all these years later) - effectively a passive aggressive commentary on her perception of my management in my estimate.

So with that she does in fact really want it done - and part of me agrees it's the right thing to do.  Logistics and details are another story.

Is it reasonable to say if I agree to take on the expense of all this work if she agrees to pay for moving/pod + temp relocation?  I'd even go as far as prorating rent for that month to account for the days she is not there. (I will prob seek counsel to make sure I know if MA law dictates the process before doing/promising anything)

If it was work that I was insisting on doing at her inconvenience I would feel an obligation to cover the expenses for her to move her stuff + vacate for a few days.  But given this is her request and is a moderately significant ask of me financially/timing/logistically I'm wondering if it's reasonable to compromise on the plan.

As for rent increases I intended to do it anyways - taxes, water, propane, maintenance have all drastically risen since I bought the property 7+ yrs ago, especially over last couple yrs and rents haven't budged for over a decade or more while they've skyrocketed around me.  Similar size unit 2 houses down is renting for 2x what I'm asking.  Now I feel I need to wait so it's not perceived as any retaliation for the ask of the work (I'll research/seek consultation on the timing to make sure it's all fair per MA law).

Just trying to do the right thing all things considered and seeking seasoned perspectives.

Apt Upgrade Long-Term Tenants Living There?

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