Is it a good idea to remodel the property while tenants still live in the property?

Question

I bought a condo through trustee sale at the end of last year. The tenant did not move out; instead the tenant signed an 6 months lease with me to rent this particular property. The least will be ended by the end of the month. Since I did not get a chance to remodel the property after I got the property. Now, I would like to fix up the property. However, the tenant just told me today sign an other 12 months lease contract with me.

My question is is anybody ever did any major remodeling while the tenant still live in the property? Is that a good idea to do that?

Dawn Anastasi · Answer

I would also say that if the tenant is happy with the property the way it is, why would you inconvenience them to remodel something?

Now, if something was broken, then I would say to fix it.

Rick Bradd · Answer

Will you be able to charge more in rent if you remodel? If so, how long will it take to recoup the removal costs?
Is the tenant paying on time. Do you like them or would you prefer to get someone else in the unit?

If it was me, I would rather not spend the money until I had to, especially if I already had a paying tenant in place.

Bill Gulley · Answer

Major rehab? Absolutely not, look up "quiet enjoyment" which is the right you give to a tenant, they can tell you when you can or can't do something, won't be long before they get feed up and kick you out or they pack up, leave and hit you up for costs and damages.

Minor fix-its, maybe, something that takes a few hours or a limited time.....maybe.

Why bother now if it's leased?  :)

Kyle J. · Answer

I would wait, especially if it's just cosmetic upgrades.  It's more difficult to remodel an occupied property.  Not that it can't be done, but why rush to do it and spend the money now?  Your tenant is obviously ok with the property if they keep signing new leases.

Suzie B. · Answer

If it's just cosmetic and you feel the need to update to your own tastes, I would hold off until you need to do the work.. Unless you've already talked to the tenant about the possibility.  If so, talk to them again about how they feel about work being done while they are living there.  It may depend on how extensive the work is to them... some may not care to live in drywall dust.

Also, you could potentially do the work while they are away sometime for vacation, etc.  I would be sure to be there at all times unless I completely trusted the contractors working for me.  I wouldn't want to be liable for any of their things coming up missing.

Kyle Hipp · Answer

Wallace, I have done some larger remodels with the tenants still living there. Once removed a bank of kitchen cabinets and reinstalled a new bank with sink and newly installed dishwasher. That only took a couple house so it was pretty quick. I have also done windows a couple times with tenants in place.

The bigger project we did inside was to gut and entry and bathroom area. This had to be restructured and gutted down to the studs. It was a second story bathroom in an upper lower duplex and we ran a new stack to the basement. Also moved washer and dryer from the basement to the 2nd floor. This was a large project and took about a week. We actually had another property just purchased that had a vacant unit that we were able to have the tenants use temporarily. It was not the most convienient for them but I believe only one of the tenants stayed there as the others stayex with family or someone else primarily.  This issue was discuss with all the tenants at legnth and they were happy to make this sacrifice for a week to have the benefit of a brand new entryway/bathroom and on floor laundry.

Now thiz worked for these particular tenants but some of my other current tenants I would not have done this. Some do not care for updates and just wanna leave stuff how it is. My best advice would be to speak with yiur tenant and see what works for them. If it is a simple 8 hour job maybe you can work out something where you get in right after they go to work and have it done by the time they get home. Also they might be going on vacation and would not have a problem with you doing a larger project. Biggest thing is communication.

Heidi Rogers · Answer

Congratulations on your purchase! I don't think it's a good idea to remodel the inside of the unit while your tenant is living there. It's a big inconvenience for them and could be a liability for you. The outside of the building should be fine to work on. It sounds like you made a good investment--cash flow positive and you don't have to spring for repairs right away.

Is it a good idea to remodel the property while tenants still live in the property?

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