Is requested repair necessary?

Question

Hi. I've had a tenant in a house for over a year. They renewed their lease just over a month ago and have now asked for me to install a gate/fence so that they can let their dog loose in the backyard. The quoted cost from the property manager (PM) is $488. They are proposing that I put the $250 pet fee to the cost of the gate. The tenant was ok without this fence for over a year. I proposed to the PM that I would install gate if tenant agreed to a $25 rent increase (even though they have been late with their rent 3 times over the past year). I don't think it's wise to forfeit the pet fee. Tenant does not agree to this as they are on fixed income, per the PM. PM says I'm at risk of loosing this tenant. Am I obliged to have gate installed? This tenant costed me over $1000 in repairs last year, including fixing blocked dryer line 3 times, blocked filters, among other repairs. I am weary of spending $500 now, only to have a mountain of other expenses as the year goes my. Any advice from the members on whether or not I should pay to install this fence is greatly appreciated!

Michael Noto · Answer

So basically a tenant who pays their rent late a quarter of the time and does not take great care of the property otherwise has requested something they do not really need?

Tell them to get lost

Ryan Murdock · Answer

@Nyoka Fernandez If you are not charging back the tenant for things like blocked dryer lines and other repairs needed as a result of their negligence you probably want to think about doing so.

Nick C. · Answer

I wouldn't do it. You should keep the $250 pet fee as a deposit to fix some of the damage the dog is inevitably going to do.

What does the PM mean losing the tenant? Didn't they just sign a lease a month ago? I think increasing the rent $25 was a fair offer, if they aren't willing to do that or can't afford it, and they aren't maintaining your house, I wouldn't lose any sleep over losing the tenant.

Penny Clark · Answer

@Nyoka Fernandez, you should not be put in the position of negotiating with your tenant.  You were right to trust your instincts to be wary of using the $250 pet deposit. Rent increases should be part of doing business and not a bartering tool. The $25 rent increase (which is small) is necessary to cover any rising costs and help you recoup repair expenses and fund capital improvements.  Upon any tenant's lease renewal or before a lease reverts to a month to month, comps should be done followed by a small increase in rent after proper notice.

That said, I do think if you are going to allow pets, a fenced yard as well as gated driveways, exterior lighting, etc. are selling features to tenants because they view them as a security benefit.

I would invest in the fence and do the rent increase anyway.  Which do you think your tenant on a fixed income will do- absorb a $25 rent increase or spend $1500 or more (first month rent, security deposit, moving expenses, etc) to find a new residence who accepts pets too?

Kyle Hipp · Answer

since no one else has mentioned it. You need a new PM. Sounds like the dryer issue was tenant caused. It should be hard piped and then no real issues. The tenant should have been charged for it. This is not a repair but rather an improvement request. The pet fee should already be in your pocket, fees are not deposits and do not get refunded.

Nyoka Fernandez · Answer

Thank you all very much for your insight!

Thomas S. · Answer

Simply tell the tenant no unless they are willing to pay for the cost.

Reality is you do not want tenants leaving their dogs outside unattended as they are likely to disturb neighbours.

At the end of their lease give notice of a rent increase, if your lucky they will leave, and put them on a M2M lease.

Gail K. · Answer

A bigger question should be....how interested are you in keeping these tenants after their current lease expires again?   How difficult is it to find replacement tenants for this property?

And perhaps a second question should be....would forking over just a bit under $500 (which, honestly is pretty cheap for a fence and gate) INCREASE the value of your property?   In other words if, after the lease with these folks expire and you don't wish to renew it (or increase the rent at that time) would the $500 investment made now increase the value so that you can increase your monthly rent next go-round by at least $25?

And no; I wouldn't use the pet fee to pay for this.   That should be kept aside for any pet damage.   However, depending on the size of the dog you might want to consider that perhaps a dog being able to get more exercise outside in the backyard might less likely to do damage inside.

Gail

John Sanderson · Answer

I'm gonna have to go with the general consensus here, I wouldn't put the fence in. It's not a repair, it's an upgrade(for the current tenant only, although possibly for future tenants). If the tenant was willing to take an increase in rent or to split the cost with you, I'd say probably do it as long as they're a great tenant. That being said, it sounds like you don't have a great tenant on your hands, just an OK one at best.

I will add this, if you plan on keeping the property pet friendly for increased rent(and costs to you, generally) I'd say go ahead and install it. A lot of pet owners will gladly pay more in rent to be able to keep their pets, and a fenced in yard will probably help you attract higher quality tenants. So, if you can, try to get this tenant to help you pay for the upgrade, if in fact you do plan on keeping the unit pet-friendly.

Is requested repair necessary?

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