Tenant Improvement Offer

Tenant Improvement Offer

Member since 2019 · 5 posts · 5 votes

One of my tenants has inquired about getting a new fence, and offered to pay for it themselves. The existing fence works, but a new fence would definitely be an improvement to the property and increase the value. The policy in the lease is that tenants should not make any changes to the property, but I would like the opportunity to make exceptions when it makes sense.

I will require this to be done by a bonded and insured contractor, and require them to sign a physical document that outlines the terms and costs involved. I don't want there to be any gray area, so I want to tell them either:

A. I will do research, and get 3 bids. I will review those bids with you and get your feedback, but ultimately I will choose which bid to move forward with. If they agree to it, we can sign off and move forward.

B. Tenant will do research and get 3 bids. I will review those bids with you and get your feedback, but ultimately I will choose which bid to move forward with. If they agree to it, we can sign off and move forward.

Once we get past the actual scope of work involved, then there is the management of the contractor. I feel like I should be the one in charge of that. I also want to be very clear with the contractors that we need full project costs upfront, not an hourly rate or estimate.

Does anybody have experience with this? Are there any concerns I should have that I'm not considering?

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Natalie KolodijBusiness Member
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Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
6y
Originally posted by @Jessica K.:

@Timmi Ryerson I appreciate the response! They do have a dog, they're worried people will be able to peek in and see the dog since they had issues in the past with the dog being stolen. I'll be sure to get it in writing that no reimbursement is expected, I want to be sure that doesn't come back to haunt me.

 I can definitely understand that- I own a bulldog which is super commonly stolen. And they're dumb and friendly...so they're basically a  $2,500 pile of friendly cash when sitting in plain view. 

I think if it's very clear in a contract of no reimbursement, you choose the installer ect I would go forward with it. 

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  • Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    Better tenant than most here, if the tenant is paying it should be up to them to get multiple bids, all you would need to do is approve of the vendor/ contractor and scope of work, as well as materials.  After all you don't want a lime green fence or something crazy.

  • Property Manager · Ketchum, ID · Member since 2016 · 277 posts · 132 votes
    6y

    Well always the skeptic here.  Have you asked why the tenant wants a new fence?  Do you allow pets and do they have a dog?  If they do not have a dog, maybe they are considering getting one...or opening a day care...etc.  If the fence that is there is fine, as you said, I would want to know their motive for wanting to replace the fence.  Once they tell you what that reason is, I would add that as a signed addendum to the lease if you approve the reason.  I would also add that no reimbursement was asked for or will be given for replacing the fence, just so that down the line, they cannot come back to you asking for a new kitchen because they put up a new fence.  If all of that goes well, then by all means, let them pay for a new fence, as long as you give your written approval.

  • Member since 2019 · 5 posts · 5 votes
    6y

    @Timmi Ryerson I appreciate the response! They do have a dog, they're worried people will be able to peek in and see the dog since they had issues in the past with the dog being stolen. I'll be sure to get it in writing that no reimbursement is expected, I want to be sure that doesn't come back to haunt me.

  • Natalie KolodijBusiness Member
    Moderator
    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    6y
    Originally posted by @Jessica K.:

    @Timmi Ryerson I appreciate the response! They do have a dog, they're worried people will be able to peek in and see the dog since they had issues in the past with the dog being stolen. I'll be sure to get it in writing that no reimbursement is expected, I want to be sure that doesn't come back to haunt me.

     I can definitely understand that- I own a bulldog which is super commonly stolen. And they're dumb and friendly...so they're basically a  $2,500 pile of friendly cash when sitting in plain view. 

    I think if it's very clear in a contract of no reimbursement, you choose the installer ect I would go forward with it. 

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