Tenant wants to paint house exterior in lieu of Security Deposit

[Letitia Glenn]

Potential new tenant offered to paint house exterior instead of paying security deposit. Is this a good idea? Or should I require him to pay the deposit and maybe give a discount on monthly rent equal to amount of work done (monthly discount applied until amount is credited). However, I should document the painting must be completed to landlord's satisfaction before tenant moves in. Am I getting in territory I dare not walk into? Help!

[Alex Zuroff]

The security deposit is there to cover damages you find after the tenant moves out.  If he moves out and leaves damage to the property, a fresh coat of paint won't help you too much.

Personally, I'd treat "Joe the Painter" completely independently from "Joe the Tenant".  Joe the Tenant has to pay a security deposit like every other tenant.  If you feel that the exterior even needs painting, Joe the Painter (assuming he has previous experience) can bid on that job along with other painters.  If he has the best bid, you sign a contract with him and pay him accordingly.