Renting to Contractors

[Albert Blair]

I need some advice Fam. I have a rental property that I am rehabbing to put it on the market to rent. The last tenants did some damage to the interior of the house and repairs like, sheet rock, fixtures, paint, etc. need to be completed.

 I live in Georgia and the hurricane destroyed the roof. As a result, a new roof was needed. The roofing company I hired also does restoration for homes. The roofing company want to rent the house and will do all of the renovations while staying in the house, as workers from their company will be staying there. 

While they are living there and doing renovations, I will discount the rent and apply the discount to the renovations. For example, their rent is $2000, they pay me $1000, I then apply the $1000 to the renovation project, which they estimate to be around $8,000.

How should I write up the lease agreement as far as collecting the rents? Should I write the $1000 or the $2000 on the lease? Has anyone ever experienced this sort of situation? If so, how did you handle it?

Thank you.

[Dennis McNeely]

The closest I've come to your situation is similar to one in which a tenant wanted to cut the grass, for which he wanted to get a reduction in his rent.

I don't like mixing the two - it can get messy if he stops mowing due to mechanical or health issues, etc. He pays his rent, I pay his mowing bill. End of story.

Interested in hearing how others deal with it.