Tenant wants Vanity Upgrade - Should I go in 50/50?

Tenant wants Vanity Upgrade - Should I go in 50/50?

Rental Property Investor · Mine Hill, NJ · Member since 2014 · 229 posts · 396 votes

So my tenant has been asking about upgrading the vanity in her unit. The current Vanity is a small 24" vanity, it's not in bad shape, but I agreed a 30" vanity would be nicer in that space. So far I've told her I might be amenable to the change so long as it doesn’t violate any building codes. In our lease it states that the tenant must ask permission before making permanent modifications to the property, it also states that any tenant upgrades shall become the property of the landlord when completed and paid for by the tenant, and shall remain on and in the apartment on the expiration of this Lease.

I am curious to hear what others do, when a tenant wants to make an upgrade that is an improvement to the property? Just say no? Go in 50/50? Pay for the materials, but allow them to install it? Have them pay for the item, but you install it?

Below are some pictures of the current Bathroom:

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Contractor · Round Rock, TX · Member since 2013 · 767 posts · 389 votes
10y

Tenants never get to do repairs on your property.   What if they cut a water line behind the old vanity?   Or don't get the plumbing hooked back up properly and you have water damage?  Or do a crappy job.  You get to pay for it all to get fixed.  I'd tell her the vanity is fine and leave it as is.  Once you start with this, they'll have another project for you to do and 3 more after that.     

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  • Rocky Hill, CT · Member since 2014 · 200 posts · 56 votes
    10y

    @Sunny Burns- Explain to the tenant that due the the toilet and heat location, it is not feasible to install a larger vanity. The vanity is in good condition and should not be replaced. 

  • Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    10y

    Yes, that's a small sink. I would place a vanity with an elongated sink in that area. The base cabinet would be the same size so no code violation. I suggest you offer upgrade as part of a lease anniversary gift. Best to you.

  • Retired Landlord/Author · Commerce Township, MI · Member since 2012 · 1k+ posts · 1k+ votes
    10y

    If you go in 50/50, the tenant, if evicted (or not) may think they are entitled to the vanity when they move.  Especially since they paid half and being evicted.

    The vanity is nice.  Nothing wrong with it.  If the tenant would like a new "this or that", I always say, Sure, but it will make your rent go up $10 a month (or more) depending on the cost of the upgrade the tenants want to have.  No problem giving them what they want, but it raises the rent. 

    This shows you are agreeble to making them happy, but there is a price for happiness. 

    Nancy Neville

  • Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
    10y

    @Sunny Burns It depends on you. Personally if you were thinking of doing some updates then that would be the perfect time to start. As @Account Closed stated, I'd let the tenant know that the rent will increase by whatever amount you think is reasonable ($10,$15,$20). I wouldn't go 50/50. It's your property and you don't want your tenant feeling entitled to anything if things go south. If you do decide to go 50/50 then include an addendum stipulating that rent is still due to you,landlord, even though you both went half. Again, I wouldn't go half with a tenant for liability purposes. Best of luck to you!  

  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    10y

    I wouldn't have even agreed to do this in the first place. The vanity is in good condition.

  • Contractor · Round Rock, TX · Member since 2013 · 767 posts · 389 votes
    10y

    Tenants never get to do repairs on your property.   What if they cut a water line behind the old vanity?   Or don't get the plumbing hooked back up properly and you have water damage?  Or do a crappy job.  You get to pay for it all to get fixed.  I'd tell her the vanity is fine and leave it as is.  Once you start with this, they'll have another project for you to do and 3 more after that.     

  • Investor · Valrico, FL · Member since 2011 · 16 posts · 17 votes
    10y

    @Sunny Burns  The first thing you should have asked is "Why do you want this vanity replaced?"  I see 3 answers-the vanity is too small, the sink is too small, or I want some drawers.  The first reason you can't do anything about because of the toilet and heater locations.  The second can be solved by a new top with a larger, deeper basin for under $100 in materials and the third for a minimum cost of $230 in materials.  (Your labor cost is different from mine no matter what.)

    If you decide to do this & have them pay some cost you need to remind them that the vanity becomes a fixture (permanent part of house) and stays when they move out.  And this deserves a small rent increase at next lease renewal.  More if you go with something other than Glacial Bay.  Like Nancy said "There is a price for happiness" and I add "How much do you (the tenant) wish to pay?"

    One of my duplexes is stuck with 18" vanities so some extra shelves and towel bars helped me there.

  • De Pere, WI · Member since 2016 · 83 posts · 39 votes
    10y

    I agree with many of the previous posts.  If it isn't broken, don't fix it!  The vanity looks like it is in perfectly acceptable condition.  In the past on our rental we would upgrade or replace things only when broken or needed (a little annoying when we were replacing and changing color of appliances but our tenants were okay with it as they knew everything was being replaced within a years timeframe).  That being said if they really do want something bigger and newer (only because they want it, it is not a necessity), then either you fund it and raise the rent accordingly OR they are able to pay for it with the understanding of your lease agreements (must meet code requirements; must stay with property after the lease is up).  We have had both scenarios with our rental property, which is a single family home.  We have not had any issues but we have also had more long term tenants.  Good luck to you!

  • Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    10y

    I often offer to go 50/50 for these requests. Tenants usually decline. If they agree, I just write up an addendum that is specific about how the upgrade stays with the property after the lease expires. Make sure to include costs of the new vanity, the labor to install, and the labor for hooking up the plumbing fixtures.

  • Beloit, OH · Member since 2016 · 49 posts · 13 votes
    10y

    If the tenant wants to go 50/50 then I would write up an addendum that that states the upgrade stays with the property, however with the pictures you posted the current vanity looks great.

    I however would not let the tenant do any of the labor.

  • Member since 2016 · 13k+ posts · 12k+ votes
    10y

    I would not change the cabinet due to restrictions regarding the heater and toilet. In addition there is no financial benefit to you and the existing unit is fine. If you are agreeable to changing the top and sink basin I would never allow any tenant to do any work on my property. If she was prepared to purchase a top and sink that I approved of then I would install it without charge. It would then become my property.

    If she wanted to change the cabinet as well providing it is no larger and one I approve of it would be the same arrangement. She pays and I would install without charge.

  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    10y

    Tenants are like grade school children - - Daddy, I want, I want, I want. You're not daddy so you don't have to pamper tenants.

    That's the cold side of tenant relations.  That all said and ignoring the condition, clearance and install issues already noted above,

    this is a nice issue for tenant retention.

    If you like your tenants and they don't whine daddy daddy all the time, then you have the opportunity to grant their request "Because you've been such a great tenant".  

    At year end, I have also been know to distribute gift cards at the local market to say Thank you for being with us (it's an advertising write off too).

    EVERYTHING is marketing.

  • HVAC Tech · Fort Wayne, IN · Member since 2015 · 423 posts · 223 votes
    10y

    First of all, definitely don't let tenant do any of the work. 

    You may not have installed this vanity, but this is the perfect example of why you shouldn't always go cheap. If a little better/bigger vanity was put in, in the first place, it wouldn't have cost much more. Now the cost is substantially more. Also you wouldn't be having this situation and your bathroom would've been that much nicer. It's little decisions like these that differentiates the successful investors from the struggling one. Whenever I have a chance to make a big difference with a little more money up front it always seems to pay off. It just is not worth being cheap. You need to know the difference between being cheap and being smart with your money. Good luck.

  • Real Estate Investor · Houston, TX · Member since 2010 · 499 posts · 206 votes
    10y

    I'd buy it. It's a cheap upgrade. 

  • Penny ClarkPro Member
    Sacramento, CA · Member since 2014 · 513 posts · 319 votes
    10y

    @sunny burns, By changing out the vanity, you will have to replace the sink top, reroute plumbing to match to gain two square feet of storage space and pay plumber fees. There's also possibility of replacing the faucet. If you decide to go this way, hire a professional or do it yourself if you're able. Never have a tenant do this type of repair. If it's installed improperly resulting in a bad plumb fit causing a leak, they may not tell you. 

    To gain extra space you might offer to mount a two tier vanity shelf for $25-30 and have tenant pay for that.

    If it ain't broke, don't fix it!

    Good luck!

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    10y

    @Sunny Burns I think it is ok to consider tenant requests like this. You need to weight the cost, quality of tenant and long term value it adds. For example maybe if she is at the end of a one year lease, you agree to do the upgrade with her signing a second year on the lease. Splitting the cost can be tricky unless it is made clear in writing they do not have any rights to the item or reimbursement when they move out. Tenants will throw it back in your face when you move out. For example they may say, yes I stained the carpet but I bought that new vanity for the bathroom so we are even. I also consider if the upgrade is fixing something that needs attention or adds value. If it benefits me, so I am more willing to do improvements like that. I would not let a tenant install anything that involves plumbing or electrical. Some places require licensed plumbers for jobs like this in rental properties (non-owner occupied).

    In your specific case the vanity appears to be in good condition. Between a new vanity, sink and plumber it will cost several hundred dollars to replace something that is not bad. It doesn't appear there is enough room to put a larger vanity in so I would just tell her there is not space. If she needs more storage, there are bathroom storage cabinets designed to mount over the toilet that would work great. She could purchase one and you could agree to install it. It would be a quick handyman job. Here is one example from Home Depot, just search "over toilet storage" to find many more options:

  • Far Hills, NJ · Member since 2016 · 8 posts · 6 votes
    10y

    I would be hesitant to share costs on any capital improvement to the home.  Let's not forget the obvious tax advantages for making capital improvements.  If treated as a capital improvement, you will receive the benefit of the depreciation expense over the improvement's useful life.  If treated as a one-time repair expense, then it is a business expense (albeit a relatively good one as it adds value) to which you can apply right to your bottom line for lower end-of-year tax treatment.  If you share the costs with your tenant, you are shorting yourself on the tax benefit!  If you want to ignore the obvious risks associated with sharing the costs that the other posters have noted (entitlement, shoddy worksmanship, etc), I think that the tax advantages are enough reason to make the improvement on your own.  No matter which route you take, I think it is only reasonable that the monthly rent be increased marginally as this is not a necessary repair/improvement. 

  • Developer · New Orleans, LA · Member since 2015 · 1k+ posts · 898 votes
    10y

    @Sunny Burns The heater appears to be the biggest issue.  I first look to see if you can find a 30in vanity that would work and solve the problem of no drawers.  I think that with the heater being so close, you might need to find a vanity that has an open lower shelf instead of being completely closed.  I have used some 36in wide units from Homedepot that were like this.

    As for paying, I would offer the tenant to buy all materials and you provide the install (I would personally do this myself, but understand not everyone is so hands on). They can either pay for it all upfront, or spread the cost in equal payments over their remaining lease term.

    As other have said, do not let them  install.  This could be a disaster.

    My guess is that once you tell them they have to pay for it, they will no longer want it.

  • Real Estate Agent · Grosse Pointe, MI · Member since 2016 · 6 posts · 1 vote
    10y

    If I have a tenant who pays rent on time and doesn't complain without reason i would be glad to make this small improvement to my property.  A little space in the bathroom could make a big difference, a small price to pay for a happy, paying responsible tenant.  There's a difference between being  willing to work with tenants, but not allowing  yourself to be take  advantage of.

  • Investor · Dallas, TX · Member since 2015 · 32 posts · 4 votes
    10y

    Hey @Sunny Burns I personally think this is a great opportunity for you. They way I see your situation is you have a tenant that wants a little change and I look at change like money.

    1st- I am thinking this tenant is your ideal tenant (pays rent on time, takes care of the property, never complains, and have an emotional connection to what they call home) that’s why you are considering the idea of upgrading. If they are not this type of dream tenant I would follow what @Michael Noto said.

    Having that said. I would upgrade it and maybe consider upgrading 1 or 2 other small details in this unit to make this so called dream tenant happier. Then increase the rent and have them sign a longer lease term. Make sure to play with the number before doing so and have the tenant pay you that money back in a long term.

    Best of luck!

    Josh Zelaya

  • Real Estate Broker/Investor · Chicago, IL · Member since 2015 · 106 posts · 22 votes
    10y

    I don't think a low end vanity should set you back more than $350 (including sink, faucet) and the install should be pretty straightforward. It just might make a difference for the next renters and I would even look on Craigslist to see if you can find a deal

  • Member since 2016 · 13k+ posts · 12k+ votes
    10y

    Dear Landlord since I am such a good, long term, pay on time tenant and you have now agreed to replace the vanity, at your expense, I was wonder if I might make another small request. The carpet in the bedroom is a little worn and it would be really nice if you could replace it, also the vinyl flooring in the kitchen has a few cuts in it could you replace it as well and while you are at it the kitchen counter has a small chip and it would be really nice if you could maybe up grade it to a stone. Also one of the tiles at the front door has a crack if you could maybe replace it or all of them that would be really nice. I also noticed last summer the back deck was looking a little faded and it would be really nice if you could restain that.

    I know you value me as a good tenant and I really would like to stay here and I am sure all these small items will not cost much and would greatly increase the value of your property.

    P.S.  I really love being your good long term tenant. Thanks. 

  • Investor · Henderson, NC · Member since 2016 · 484 posts · 208 votes
    10y

    You have to ask yourself, is improving that vanity going to put more rent in my pocket? If the answer is no then you should not even consider doing it.

  • Rental Property Investor · Mine Hill, NJ · Member since 2014 · 229 posts · 396 votes
    10y
    Originally posted by @Thomas S.:

    Dear Landlord since I am such a good, long term, pay on time tenant and you have now agreed to replace the vanity, at your expense, I was wonder if I might make another small request. The carpet in the bedroom is a little worn and it would be really nice if you could replace it, also the vinyl flooring in the kitchen has a few cuts in it could you replace it as well and while you are at it the kitchen counter has a small chip and it would be really nice if you could maybe up grade it to a stone. Also one of the tiles at the front door has a crack if you could maybe replace it or all of them that would be really nice. I also noticed last summer the back deck was looking a little faded and it would be really nice if you could restain that.

    I know you value me as a good tenant and I really would like to stay here and I am sure all these small items will not cost much and would greatly increase the value of your property.

    P.S.  I really love being your good long term tenant. Thanks. 

     This is precisely what I am afraid of...

    But it seems like every landlord who has responded has had a different approach, and I guess it really depends on the tenant in question. Still contemplating everyone responses and deciding what approach fits best with our tenant.

  • Littleton, CO · Member since 2014 · 195 posts · 72 votes
    10y

    I second the over the toilet storage shelves or cabinet.  Since neither are permanent, you should not have to worry about code violations.

    When they moved in they should have realized that due to the heater location, there is no logical way for you to install a larger vanity.  

    You could even put a second medicine cabinet (or storage shelves) on the wall left of the sink.  

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