Tenant asking to replace floor

Seattle, Washington
General Landlording & Rental Properties
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Tenant asking to replace floor

Tarun Mitra
Member since 2021 · 10 posts · 7 votes

I recently purchased a duplex and inherited two tenants. One of the tenants (let’s call them Tenant A) has lived in the property for 9 years, while the other tenant (Tenant B) is a relative of Tenant A. Before the purchase, Tenant B's unit was renovated, and their lease is newer with slightly higher rent. When I acquired the property, both tenants were paying below-market rents. I raised the rents to bring them closer to market value, though still not at full market rates.

It’s now been four months since the rent increase, and Tenant A has requested hardwood flooring to replace the carpet, which I believe has been there since they first moved in. They mentioned that with the rent increase, this improvement is the least I could do.

At this point, I’m hesitant to switch to hardwood floors, as they’ve just started paying the new rent, and it would take some time for me to recoup the costs of such a change. However, if I were to proceed with this, I would likely need to adjust the rent accordingly.

I’m looking for advice from the community on how best to approach this situation. How would you handle this request, and how might you phrase a response to the tenant?

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2y
Quote from @Tarun Mitra:

I recently purchased a duplex and inherited two tenants. One of the tenants (let’s call them Tenant A) has lived in the property for 9 years, while the other tenant (Tenant B) is a relative of Tenant A. Before the purchase, Tenant B's unit was renovated, and their lease is newer with slightly higher rent. When I acquired the property, both tenants were paying below-market rents. I raised the rents to bring them closer to market value, though still not at full market rates.

It’s now been four months since the rent increase, and Tenant A has requested hardwood flooring to replace the carpet, which I believe has been there since they first moved in. They mentioned that with the rent increase, this improvement is the least I could do.

At this point, I’m hesitant to switch to hardwood floors, as they’ve just started paying the new rent, and it would take some time for me to recoup the costs of such a change. However, if I were to proceed with this, I would likely need to adjust the rent accordingly.

I’m looking for advice from the community on how best to approach this situation. How would you handle this request, and how might you phrase a response to the tenant?

My policy is similar to @Bruce Woodruff. They should be thankful they were below market rate for so long, and are still below market rate. I would not make any improvements at this time.

How far below market are they? 10%? 20%?

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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y

    Are they good tenants? Do they pay on time? How long is your ROI? Those are questions you need to answer.

    Also, just because they finally were raised to market rent (or close to it) does not mean that they deserve a 'present'. They should have been paying more all along, right?

    So I would educate them on the fact that they were given a gift for many years, and now that you have finally chosen to raise rents to market (so that you can make the profit that you deserve) they will have to wait for a year so that you can put aside some of your new (and well deserved) rent increase to pay for their nrew floor. Don't just cave right away or they will know that they own you....

    2Reply
  • Haiden W.
    Investor · Santa Clara, United States · Member since 2024 · 26 posts · 17 votes
    2y
    Quote from @Bruce Woodruff:

    Are they good tenants? Do they pay on time? How long is your ROI? Those are questions you need to answer.

    Also, just because they finally were raised to market rent (or close to it) does not mean that they deserve a 'present'. They should have been paying more all along, right?

    So I would educate them on the fact that they were given a gift for many years, and now that you have finally chosen to raise rents to market (so that you can make the profit that you deserve) they will have to wait for a year so that you can put aside some of your new (and well deserved) rent increase to pay for their nrew floor. Don't just cave right away or they will know that they own you....


     Very well said, could not agree more

    1Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y

    Sorry, but they want HARDWOOD floors!!  Say no. Not to say you don't change the flooring if it needs to be done, but why would you go to one of the most expensive options?  I'd also mention that the rents were raised because they were well below market value and still are below market value, so they've been paying less in rent for X years.

    I'd also explain if the floors get replaced, they have to move all of their stuff out of those rooms and leave it out until the new floors can be walked on. For hardwood, that will take much longer and I'd bet they'd walk on it or move heavy furniture before the top coat is cured and damage it.

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Tarun Mitra:

    I recently purchased a duplex and inherited two tenants. One of the tenants (let’s call them Tenant A) has lived in the property for 9 years, while the other tenant (Tenant B) is a relative of Tenant A. Before the purchase, Tenant B's unit was renovated, and their lease is newer with slightly higher rent. When I acquired the property, both tenants were paying below-market rents. I raised the rents to bring them closer to market value, though still not at full market rates.

    It’s now been four months since the rent increase, and Tenant A has requested hardwood flooring to replace the carpet, which I believe has been there since they first moved in. They mentioned that with the rent increase, this improvement is the least I could do.

    At this point, I’m hesitant to switch to hardwood floors, as they’ve just started paying the new rent, and it would take some time for me to recoup the costs of such a change. However, if I were to proceed with this, I would likely need to adjust the rent accordingly.

    I’m looking for advice from the community on how best to approach this situation. How would you handle this request, and how might you phrase a response to the tenant?

    My policy is similar to @Bruce Woodruff. They should be thankful they were below market rate for so long, and are still below market rate. I would not make any improvements at this time.

    How far below market are they? 10%? 20%?

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    3Reply
  • Tarun Mitra
    OP
    Member since 2021 · 10 posts · 7 votes
    2y
    Quote from @Bruce Woodruff:

    Are they good tenants? Do they pay on time? How long is your ROI? Those are questions you need to answer.

    Also, just because they finally were raised to market rent (or close to it) does not mean that they deserve a 'present'. They should have been paying more all along, right?

    So I would educate them on the fact that they were given a gift for many years, and now that you have finally chosen to raise rents to market (so that you can make the profit that you deserve) they will have to wait for a year so that you can put aside some of your new (and well deserved) rent increase to pay for their nrew floor. Don't just cave right away or they will know that they own you....

    I have purchased the property recently. It has been only like 6 months they paid rents and 4 months they paid increased rents. They have been paying on time so far. I cannot claim as of now whether they are good tenants or bad. 
    I agree 100% that just because the rents were raised they DO NOT deserve a present. As I am new I was wondering I would I would I word this out to them

    1Reply
  • Tarun Mitra
    OP
    Member since 2021 · 10 posts · 7 votes
    2y
    Quote from @Nathan Gesner:
    Quote from @Tarun Mitra:

    I recently purchased a duplex and inherited two tenants. One of the tenants (let’s call them Tenant A) has lived in the property for 9 years, while the other tenant (Tenant B) is a relative of Tenant A. Before the purchase, Tenant B's unit was renovated, and their lease is newer with slightly higher rent. When I acquired the property, both tenants were paying below-market rents. I raised the rents to bring them closer to market value, though still not at full market rates.

    It’s now been four months since the rent increase, and Tenant A has requested hardwood flooring to replace the carpet, which I believe has been there since they first moved in. They mentioned that with the rent increase, this improvement is the least I could do.

    At this point, I’m hesitant to switch to hardwood floors, as they’ve just started paying the new rent, and it would take some time for me to recoup the costs of such a change. However, if I were to proceed with this, I would likely need to adjust the rent accordingly.

    I’m looking for advice from the community on how best to approach this situation. How would you handle this request, and how might you phrase a response to the tenant?

    My policy is similar to @Bruce Woodruff. They should be thankful they were below market rate for so long, and are still below market rate. I would not make any improvements at this time.

    How far below market are they? 10%? 20%?

    The rents are still like close to 10% lower. 
    0Reply
  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    2y

    As a side note, I would never put hardwood flooring in a unit. Forget the fact that it is expensive. It is difficult to maintain, it scratches, it warps, it stains, it needs to be cleaned with cleaners made for wood floors, pets tear it up, it transfers noise, it shows wear patterns, etc. 

    Put in vinyl. I won't say it looks better or feels better, but it is cheap and it lasts. If styles change in a few years, it'll be cheaper to replace than a single refinishing of the wood floors that's typically done every 7-10 years. 

    1Reply
  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    2y

    @Tarun Mitra, there is a feeling among tenants that if you raise the rent you should be improving the property.

    1. I would explain to them that for the unit in the condition it is in now that the rent is still below market rate.

    2. I would explain that I typically do not do upgrades except during turnovers between tenants.

    3. I would also explain that if I did upgrade to hardwood (or more likely LVP flooring) that I would be raising the rent again. 

    0Reply
  • Madri Koppe
    Interior Decorator · CA · Member since 2020 · 78 posts · 30 votes
    2y

    Yea, I wouldn’t agree with this unless there was a valid reason for changing the flooring. You can let them know you’d consider upgrades to the unit at a future date but would also need to further adjust rent accordingly. 

    0Reply
  • Henry T.
    Member since 2022 · 1k+ posts · 1k+ votes
    2y

    "Thank you for the request for new hardwood floors.  We are always thankful for suggestions and take them seriously. At the present rate of rent it is not within our budget to allocate the funds for this expenditure. Thanks again for your suggestion, we very much appreciate your tenancy. "


    PS. I would never do a project like this with a tenant occupying. AND I would never put in new hardwood floors for a renter. Raise their rent a few more times, maybe they'll leave and then you can do your rehabs with no interference.  PSS. Seattle, worst place in the world to be a landlord. Be careful, the place is loaded with professional tenants.


    2Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    The answer isn't telling them they were below market and should have been grateful. The answer is no, right now. Thanks for understanding, and you keep it moving. 

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y

    Yeh, Henry's response is pretty good. Whatever your response is, don't put so much thought into it. The property is yours, not theirs. They are paying below market and have been for a long time. They stayed nine years and are clearly comfortable with the rental.

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