Tenant wants to make improvements. Should I let them?

[Will Yee]

Hey BP,

I have a new tenant who just moved in on May 1st and are under a 2 year lease in our SFH 3Bed/2Bath property.

So far they've been great, very friendly, neighbors like them, paying on time, etc. No issues.

They've asked if they can replace the vinyl flooring in the kitchen. It could definitely use some updating. We would choose the color but they would cover the costs and do the work. The kitchen isn't big and this isn't a big job. Shouldn't require anything major to complete. 

My initial reaction is that I'm not opposed to them doing the work since we're not talking about something really involved like electrical or plumbing. Are there any issues with having them pay for it or should I pay for the materials at a minimum? They're willing to cover all costs, they would just like to have a nicer floor in the kitchen while they're in the property. 

Anyone else have experience with Tenants doing improvements? Any watch outs?

Thanks for any advice!

Will

[Matthew Olszak]

@Will Yee I would just get the deal in writing that any tenant improvements made to the property become your property, and that you are not paying anything for this improvement. Something short and simple.

Really great people turn into really bad people when times get tough, and I've found across multiple industries that folks always like to dig out that one time they "helped" you when the relationship sours. IE they move out and you find $2k worth of damages, and then they fight back that they made the place so much nicer how dare you (when the floor was only $500). You also don't want them pulling up the floor when they move out, which occurred to a client of mine with light fixtures.

Just make sure everything is written and clear for the future. And be sure they have a pro do it or can do the work to that level. I can't count how many apartments I've gone through where tenants "repainted" all over the trim and windows, making the unit turnover repaint take twice as long and cost twice as much.