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Updated over 5 years ago, 06/18/2019

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Mindy Jensen
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  • BiggerPockets Money Podcast Host
  • Longmont, CO
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What does YOUR lease say about modifications to the property?

Mindy Jensen
Pro Member
  • BiggerPockets Money Podcast Host
  • Longmont, CO
ModeratorPosted

In a trending post, a member's tenant is asking to install ceiling fans in the property. He claims his brother is an electrician, that they will purchase the fans, and the brother will install them for free. (https://www.biggerpockets.com/forums/52/topics/706669-tenant-wants-to-install-ceiling-fans)

Many responses say "No, he rented it as-is. Do not allow tenant to make modifications to your property."

Sound advice.

What does YOUR lease say about property modifications? Do you go over that clause with your tenants? 

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John Underwood
Pro Member
#1 Short-Term & Vacation Rental Discussions Contributor
  • Investor
  • Greer, SC
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John Underwood
Pro Member
#1 Short-Term & Vacation Rental Discussions Contributor
  • Investor
  • Greer, SC
Replied

My lease says no modifications without written permission.

  • John Underwood
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    Cassi Justiz
    • Rental Property Investor
    • Edmond, OK
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    Cassi Justiz
    • Rental Property Investor
    • Edmond, OK
    Replied

    My lease says no alterations or additions without written consent of the landlord and we have the tenant sign off on this section. It also includes the wording "If made, or installed, with or without consent, all alterations, additions and fixtures become part of the real property and shall remain at expiration or termination of the Rental Agreement term."

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    User Stats

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    Scott P.
    • Rental Property Investor
    • Indiana...mostly
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    Scott P.
    • Rental Property Investor
    • Indiana...mostly
    Replied

    Mine says no mods without my written approval.  I think it also says they have to restore to same condition.  I admit I don't walk through it w/the tenants but I'm considering changing that practice because walking through the lease seems to me now to be the right thing to do.  Years ago I guess I just assumed they'd read it and ask if they have any questions.

    I've given approval and had a couple of mods through the years but most tenants don't ask to change things in my experience.

    User Stats

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    Bradley A.
    • Chicago, IL
    26
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    Bradley A.
    • Chicago, IL
    Replied

    No Alterations. Tenant shall not make or cause to be made any alteration or addition to the Premises, without the prior written consent of Landlord, and shall under no circumstances install any additional lock or security device to the Premises or the property which could impair Landlord's access.

    @Cassi Justiz Come renewals, we may need to amend our lease agreements to include your bit about alterations/additions/fixtures becoming part of the real property at the expiration of the lease. Good stuff. This would have eliminated an appliance ownership headache we're dealing with now.

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    Nancy P.
    • Naperville, IL
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    Nancy P.
    • Naperville, IL
    Replied

    Mine says no modifications without written approval, and no extra appliances without written approval.  I had a tenant move a large chest freezer into a 530 s.f. apt (roughly 2 car garage size).  Blew the panel.  And my lease did already have that clause, it cost the tenant $3K.

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    Dan Maciejewski
    Agent
    • Realtor
    • PInellas County Largo, FL
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    Dan Maciejewski
    Agent
    • Realtor
    • PInellas County Largo, FL
    Replied

    Nothing without written approval, and even then, it stays.  They are most likely not getting written approval, especially in that situation!  The only thing we allow are draperies and pictures as long as they return the walls to original condition.

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    Joe Splitrock
    Pro Member
    • Rental Property Investor
    • Sioux Falls, SD
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    Joe Splitrock
    Pro Member
    • Rental Property Investor
    • Sioux Falls, SD
    ModeratorReplied

    I am the same as @Dan Maciejewski no mods without written permission but we allow holes for pictures or curtains and request they patch and touch up before leaving.

    We do work with people on upgrades if the upgrade increases the appeal of the property. Anything that makes the property more appealing will result in a happier tenant and will cause it to rent faster in the future.

    The difficult conversations come when the tenants idea of "appealing" and mine are different. I clarify this to people by explaining the modification needs to have mass appeal and be neutral. It is at landlords sole discretion. 

  • Joe Splitrock
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    Nathan Gesner
    Property Manager
    Agent
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    • Real Estate Broker
    • Cody, WY
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    Nathan Gesner
    Property Manager
    Agent
    Pro Member
    • Real Estate Broker
    • Cody, WY
    ModeratorReplied

    No modifications without written approval. I  have a form for the tenant to fill out requesting the modification. It's a couple pages long and includes:

    1. Specific work to be done

    2. Materials used

    3. Who will do the work

    4. Who will pay for materials and labor. If the owner is paying for any portion of it, I write a specific dollar amount and that is a hard limit. If the cost goes above, Tenant pays for it.

    5. Establish a deadline for completion. Don't leave anything open-ended because the work may never get finished. Deadlines should be reasonable.

    6. Set a date for inspection and approval

    7. If the completed project does not meet owner approval, Tenant pays to fix it. For example, if you authorize them to paint an accent wall and they get paint on the ceiling, they would be responsible for correcting that mistake, hiring someone to correct it, or the owner will correct it upon termination and charge the tenant.

    8. What happens to the improvement after termination? For example, if the tenant wants to install shelves in a bedroom closet, do the shelves stay and become owner property or does the tenant remove them and return the closet to its original condition?

    I think that's it but I don't have my form in front of me.

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    Eric Carr
    • Real Estate Broker
    • Los Angeles, CA
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    Eric Carr
    • Real Estate Broker
    • Los Angeles, CA
    Replied

    I prohibit it in the lease. Too much liability on esp here in LA. I'd have to agree, want it, and it would have to be permitted by the city (Actual Permit)

    User Stats

    11
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    Ed Zulyevic
    • Rental Property Investor
    • Willamette Valley Oregon
    16
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    11
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    Ed Zulyevic
    • Rental Property Investor
    • Willamette Valley Oregon
    Replied

    My rental lease agreements say no modifications without written consent. In my lease purchase option's its ok to do mod's or upgrades.  

    User Stats

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    Grant Delmonte
    • Rental Property Investor
    • Washington
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    Grant Delmonte
    • Rental Property Investor
    • Washington
    Replied

    My lease says no.

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    Wesley W.
    • Rental Property Investor
    • The Vampire State
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    Wesley W.
    • Rental Property Investor
    • The Vampire State
    Replied

    19. ALTERATION: You may not make alterations or additions, nor install or maintain in the apartment, or any part of the Premises, any fixtures, large appliances, devices, structures, or signs without our written consent. This includes any painting. Any and all alterations, changes, and/or improvements built, constructed or placed on the Premises, unless otherwise provided by written agreement between you and us, be and become the property of us and remain on the Premises at the expiration or earlier termination of this Agreement

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    User Stats

    28
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    Lee Zhao
    • Investor
    • Las Vegas, NV
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    Lee Zhao
    • Investor
    • Las Vegas, NV
    Replied

    We allow tenants to install ceiling fans as long as out of their pocket, good renting history, and of course, the owner's approval.

    User Stats

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    Richard Gray
    • Rental Property Investor
    • Copperas Cove, TX
    23
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    38
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    Richard Gray
    • Rental Property Investor
    • Copperas Cove, TX
    Replied

    no modifications except those approved by the landlord in writing and then only done by qualified contractors/ handymen approved by the landlord and then at the cost of the tenant. all modifications/ additions will become the property of the landlord when the tenant vacates the property. No exceptions.

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    John Teachout
    • Rental Property Investor
    • Concord, GA
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    John Teachout
    • Rental Property Investor
    • Concord, GA
    Replied

    On ceiling fans, I would install one if the tenant requested (we install fans in all bedrooms prior to leasing the property) but would never let a tenant or their people do it. I have repaired too many improperly installed fans. Many electrical boxes in ceilings are not intended to support more than a low weight light fixture and I'm sure no one on this forum wants a spinning fan dropping onto a tenant's bed.

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    Trevor Forbes
    • Flipper/Rehabber
    • Topeka, KS
    3
    Votes |
    3
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    Trevor Forbes
    • Flipper/Rehabber
    • Topeka, KS
    Replied

    1.ALTERATIONS:

    Tenant shall make no alterations, decorations, additions, or improvements in or to the premises without Landlords’ prior written consent, and then only by contractors or mechanics, or other approved by Landlord. All alterations, additions, or improvements upon the premises, made by either party, shall become the property of the Landlord and shall remain upon, and be surrendered with said premises, as a part thereof, at the end of the term hereof.

    User Stats

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    13
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    Stephen Willis
    • Rental Property Investor
    • New York, NY
    13
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    42
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    Stephen Willis
    • Rental Property Investor
    • New York, NY
    Replied

    It is usually written in the lease contract that without the permission of landlord, tenants shall keep things unchanged in the house. Any modification must be approved and agreed by landlords. 

    User Stats

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    Replied

    Are there landlords interested in co-landlords.? Whereby major modifications are made to property and property re-leased at a higher price to the benefit of the co-landlord.