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Updated over 7 years ago,
Tenant wants a garage built and is willing to pay 1/2 the cost
I have a tenant who lives in a nice single family house in Wisconsin wi th no garage. She wants a garage and so she offered to pay half the cost if I would get one built. Business wise, it seems like a no brainer. I pay half the cost, but get the full value if I ever sell or can increase rent for a future renter. I guess I'm wondering what other investors think of this? How would you structure this with the tenant (I obviously need a contract with her of some sort outlining things)? Can I just take a lump sum payment for her half or should I re do the lease and raise her rent considerably over the next 12 months in order to pay for her half. After the 12 months, I could reduce the rent back to market level. What caveats or problems can you think of?
I am definitely going to get a lawyer involved at some point, but I'm trying to make sure I think through everything before approaching one.