Tenant Improvements Policy for SFH

[Ben Freiman]

Hello BP. I have a good problem with my new tenants in my SFH. They are a family of 5 and make good money, just don't have the best credit. Signed a 2 year lease with interests to stay longer, but didn't want to lock in long term yet since we did not know each other well. Their last house they rented for 7 years!! (Verified by prior landlord and also were excellent tenants).

When signing the lease they were interested in making improvements to the home, in order to make it their own. I am acceptable to this, because as they make improvements it will help my resale/re-rent value, and being in the SFH business I like my tenants to make it their home so they are happy and want to stay longer. NOTE: In the lease it states ALL improvements must be approved in writing by landlord.

Examples of improvements: Seal/Pave the driveway, Paint wood trim white (classy), new ceiling fans, etc.... 

My question to the BP community who have tenants, what is your policy on tenant improvements? Do you subtract from the rent the amount of the materials/supplies, do you also subtract labor costs too, do you subtract 50% of the cost??? I have my own views, but I would like to hear from others on what your policy is on "landlord approved" improvements. Thank you.