Overly Zealous Tenant

Overly Zealous Tenant

Rental Property Investor · Boston, MA · Member since 2017 · 35 posts · 9 votes

We placed a tenant (Military family) at my property in Germany about three months ago. I used my team to conduct the turnover, and at the time the only condition that they had was to replace (some very outdated) carpet. Since I wasn’t present at turnover there were some minor differed maintenance issues that I didn’t take care of myself. I travel back to check on the property every 2-3 years...my team takes care of the major issues as they arise.

After a month, the tenant’s wife found some other “issues” that she wants fixed. (DISCLAIMER: the tenant’s wife is an architect). Some are reasonable, but in my opinion, many are not...looking for some input on what you guys think.

Reasonable

1. Wasps in attic

2. Power wash and re-sand the driveway pavers as weeds are pushing the pavers up in some areas.

3. Minor dripping at kitchen sink faucets

4. Re-grout showers

Unreasonable/Unsure

1. Update the kitchen countertops; there are very minor chips in the laminate and some of the gaskets around the back wall are missing or old.

2. Retile the kitchen due to some settling cracks (but nothing protruding or creating sharp edges)

3. Kitchen cabinets have very minor cracks at the base, not impacting the operation of the cabinets.

4. Baseboards in living room doesn’t join completely flush.

5. Install a brand new fence. Previous tenants had dogs and installed a fence with permission (they did a bad job, and rigged the fence together with zip ties in some areas, but the fence still functions fine).

6. Re-seed the grass; the previous tenant left large objects in the grass that killed off some large areas.

Lastly, we planned to remodel the kitchen after these tenants moved out. The kitchen/dining/family room are connected with an open floor plan. We planned to redo the floors after these tenants moved out as well. The average family stays 3+ years.

My tenant plays an active role in getting quotes and material prices for the projects she wants completed. I’m tempted to do many of the renovations while they’re in the unit, which would help dramatically reduce turnover the next time, but really trying to decide if I should wait 2-3 years or start slowly doing these renovations, since I know they’re needed...eventually. My concern is if I start renovations now, the life cycle replacement on these items starts ticking once they’re installed vs if I wait a little longer.

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y

Disclosure: I didn't finish reading your post because I saw where it was headed.

This is a common tactic. People look at your rental, tell you they love it and it's perfect and they'll be the best tenants ever...then they move in and start complaining about all the problems they want you to fix.

I give them a disclosure, verbally and in writing, that says they've been given the chance to inspect and are accepting the property in "as is" condition. We do not promise additional cleaning or improvements or lock changes once they occupy. If something breaks, we fix it but we will not make improvements to the rental once they occupy.

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  • Neddie SmithPro Member
    Rental Property Investor · Portland, OR · Member since 2018 · 56 posts · 18 votes
    7y

    My 2 cents. As long as you have nothing legally binding you to do the "Unsure/Unreasonable" items then it is not an issue. In regards to the renovation, if you are able to get the tenants to agree to higher rent if you start the renovations now, then I would do it. Instead I would wait.

  • Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    7y

    We rent to active duty (going on 14 years) & the new one's wife is OCD, but they have opted to do all the work, we just paid for materials. Ours are minor issues as the 1950's era property was completely rehabbed with a large addition (in fact literally rebuilt) back in 2004 & things are starting to wear, drywall settling cracks etc etc. Up until now we have done nothing major to repair/replace. They even have their guys tune the HVAC & they completely rebuilt one of the pellet stoves that came with the place, (I just paid for parts). 

    "...My tenant plays an active role in getting quotes and material prices for the projects she wants completed. I’m tempted to do many of the renovations while they’re in the unit, which would help dramatically reduce turnover the next time, but really trying to decide if I should wait 2-3 years or start slowly doing these renovations, since I know they’re needed...eventually. My concern is if I start renovations now, the life cycle replacement on these items starts ticking once they’re installed vs if I wait a little longer...."

    She sounds like a great tenant & with her qualifications certainly appears to be capable of managing the rehab. So if it was me I would let them do it especially since it appears they are not averse to the disruption & the rehab can be done all at once rather than your idea of spacing it out with the possibility of downtime. A couple of years shouldn't make any difference regarding your concern about the lifecycle of the new installs. On these high end SFR with great tenants I find if you respond to the little things positively they will take care of & also tell you about stuff that could be a bigger problem. In fact we had a huge maple tree come down last year & it landed 20ft into the neighbors yard (she is a chopper pilot for Home Land Security). So the tenant had his guys over to remove it & stacked all the wood for years of future fire pit usage & I only just heard about it.

  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    7y
    I always wan to improve my properties so I would do the reasonable stuff first. She will see you are working on improvements and repairs.

    You could ask her is she is willing to sign a longer lease in exchange for some of the items below?

    Explain to her that you are planning on doing these things during the next turnover to get higher rent. Would she be willing to pay more rent if you do these things now?

    Think about this. When you go to rehab your house as you plan to in a couple years you will loose a couple months rent while you are doing the upgrades. You currently have someone that is willing live through a rehab to get a nicer looking house.

    Unreasonable/Unsure

    1. Update the kitchen countertops; there are very minor chips in the laminate and some of the gaskets around the back wall are missing or old. Depends on how long she is willing to sign a lease for.

    2. Retile the kitchen due to some settling cracks (but nothing protruding or creating sharp edges) 
    Depends on how long she is willing to sign a lease for, but keep an eye for this turning into an unsafe situation.

    3. Kitchen cabinets have very minor cracks at the base, not impacting the operation of the cabinets. Have handyman put some bondo in the cracks and touch up the paint.

    4. Baseboards in living room doesn’t join completely flush. Caulk and touch up paint. This is an easy fix.

    5. Install a brand new fence. Previous tenants had dogs and installed a fence with permission (they did a bad job, and rigged the fence together with zip ties in some areas, but the fence still functions fine). 
    Depends on how long she is willing to sign a lease for. Maybe higher rent

    6. Re-seed the grass; the previous tenant left large objects in the grass that killed off some large areas. Ask if you buy some seed will she trow it out and water it?

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    7y

    Some of those are quick and easy fixes.  Tell her that you will get to the items that need to be done over time, starting with the two that urgent (wasps and dripping faucet).  Many of them are cosmetic and she would have known about them prior to moving in (counter, cabinets, baseboard, fence, etc).

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    Disclosure: I didn't finish reading your post because I saw where it was headed.

    This is a common tactic. People look at your rental, tell you they love it and it's perfect and they'll be the best tenants ever...then they move in and start complaining about all the problems they want you to fix.

    I give them a disclosure, verbally and in writing, that says they've been given the chance to inspect and are accepting the property in "as is" condition. We do not promise additional cleaning or improvements or lock changes once they occupy. If something breaks, we fix it but we will not make improvements to the rental once they occupy.

    The DIY Landlord Book4.7248 Reviews
  • Investor · Raleigh, NC · Member since 2013 · 1k+ posts · 708 votes
    7y

    Keep in mind that rules and regulations (and expectations) can be very different in Europe from what we are used to in the US.  For example, my personal experience with rentals in Switzerland is that they are vastly more tenant friendly than even the most liberal places in the US (CA, NY, MA).  So, what might be “optional” here in the US, could get you into hot water really quick over there.  I assume your new tenants are US military related?  If so, perhaps their expectations are more US centric, but if they are locals and know their rights, then I suggest you proceed with caution.  You seem to have good and functional communication with the tenants - keep it that way!  Try to go the extra mile, if reasonable at all.

    As far as asking for extended lease in return for repairs, that may or may not be legally feasible, but if it is a military family, they will move out whenever they get orders, regardless of what your lease says.

  • Member since 2019 · 111 posts · 36 votes
    7y
    You don't have to do any of the unreasonable ones.
  • Rental Property Investor · Boston, MA · Member since 2017 · 35 posts · 9 votes
    7y

    @Neddie Smith thanks for that, I’m inclined to wait. I have a craftsman that should be able to handle the renovations, pretty quickly once they move out.

  • Rental Property Investor · Boston, MA · Member since 2017 · 35 posts · 9 votes
    7y

    @Pat L. Thanks for the reply. If I can negotiate for supplies only, it might be an option. Great insight and experience.

  • Rental Property Investor · Boston, MA · Member since 2017 · 35 posts · 9 votes
    7y

    @John Underwood I’ll see if they are willing to increase rent in exchange for immediate renovations. They’re likely staying 3 years as it stands. If they decide to stay another 2 years, that would be entirely out of their hands, it depends on what the military would do in terms of their next assignment. He could opt to stay, but still unsure at this time.

  • Rental Property Investor · Boston, MA · Member since 2017 · 35 posts · 9 votes
    7y

    @Theresa Harris indeed. I’m thinking about doing the renovations the last year they’re in the property, but if they want to handle the install, I don’t mind paying for materials upfront. I see that as a win win for both parties.

  • Rental Property Investor · Boston, MA · Member since 2017 · 35 posts · 9 votes
    7y

    @Nathan G. The exact sentiment my wife and I have. I’m trying to be proactive, I recognize some of these requests will need to be done down the road...which is why I don’t mind doing them the last year of their lease.

  • Rental Property Investor · Boston, MA · Member since 2017 · 35 posts · 9 votes
    7y

    @Andrew S. They are a military family. As I am as well. We checked with our realtor (also a landlord). She said that the issues my tenant has aren’t deal breakers, besides when the housing department conducted their joint inspection, they didn’t indicate that anything needed to be updated/repaired.

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