How do you treat tenant improvements?

[Carl W.]

I gave my tenant permission to make an improvement to the building. I didn't think anything of it because it seemed like a minor request at the time. I saw the improvement the other evening and I was very happy with the results and installation. I like it so much I'm thinking I should reimburse the tenant for the cost. This is my first time dealing with a tenant improvement and I'd like to know how other landlords handle it. I never thought to improve the building in this way since it does not benefit me at all. It was strictly done for their benefit. Thanks!

[Andrew Weiner]

I would not reimburse the tenant.  It sets a precedence that they can seek reimbursement from you without prior approval.  Even though things might be great now you have to hedge for the future that they could be resentful if you don't decide to pay them back for something else they do.  Maybe just a recognition that it looks great and you appreciate their keen eye or skills.