Tenant want to install security system, should I allow it?

Question

The tenants want to install security system with smart thermostat adapter and one main keypad? How should I handle this?

Should I say yes under the condition that the system needs to stay when the tenants move out?

The house is newly built.

Mark P. · Answer

I would ask if it is:

1.  A wireless or hard wired system?
2.  Self monitored or monitoring company?
3.  Who is installing it? 
4.  Are they licensed and bonded?

If it's a self monitored wireless system, I'd say go ahead.  If they are signing a contract with a provider and getting free equipment hard wired in your home, I'd be hesitant to do that.

Mike Franco · Answer

I would allow it, at their expense, since it is not a necessity.

Alarm system installation usually doesn't screw with anything. Just a bunch of wires. I had one installed when I built my house. It's nothing.

Jim Bentley · Answer

In our town, you're required to register the alarm system with the city, for a fee.  You're also charged between $10 and $300/year renewal fee, depending on how many false alarms there have been during the previous year.  If there's a false alarm at a residence with an unregistered alarm, they charge a huge amount.

That may be an additional fee you'd be on the hook for if the tenant moves out in the middle of the year.

Colleen F. · Answer

Have them send you exactly what they are installing ,  who is installing it, cost, and ask why.  Only with a professional install would I allow them to do it. You could ask them to leave it or charge an extra security fee  to insure they return the house to the state it was in when they got it if the changes are extensive.   All that being said if they could do it under their own name and bear costs of operating (including any municipal fees that may incurred- my town charges for security systems) then I would allow it. This is a personal  safety issue/ perceived issue and I feel more tolerant about this then say paint color changes. If it was just a smart thermostat I would take on that cost myself or split it with them and manage the install. I see this as adding value but it may depend on the area.

Mark Yuschak · Answer

I had this come up multiple times with my properties.

In three of the four instances, I had the system installed at my expense, for the tenant's use.  When the tenant moves out, I simply delete their security code, and create a new one for the incoming tenant.  It's never been an issue and the incoming tenants really like the additional sense of security.  These are non-monitored systems and just noise-makers if there's a fault.  For the measly $450 it cost to have each system installed, I think it was well worth it for having a competitive edge over other properties.

The fourth property was a different story.  The tenants wanted a high-end, monitored system, similar to what started this post.  I allowed the tenant to have it professionally installed at their expense, with the agreement that the system remains affixed to the property upon their vacancy.  The system was professionally installed and beyond anything I'd even put in my own home.  It's sure to also add intangible value to future tenants.

Jon K. · Answer

You still have a key to the home. When the security company responds, you prove who you are. Or have the tenant add you as an "authorized user" on the security contract where they e-mail/call you when the security code has been updated.

Michele Fischer · Answer

One thing that hasn't been brought up is the compromised ability to get into the property in case of emergency or abandonment.  How could you ensure that you have possession of the true security codes?  I'd be very hesitant.

Tom Goans · Answer

Eve W.,

A consultation with a real estate attorney where the property is located may be a wise investment and consideration.

Real Property vs. Personal Property

My understanding of the law, when something is affixed to real estate, it may legally become a part of the real property and is no longer considered personal property, and thus, now the attached property is owned by the owner of the real estate.

Again, consulting with an attorney is extremely wise and suggested.

Beyond this consideration, the tenant is offering to improve your investment property at their expense. This consideration may be covered in the lease agreement. In some lease agreements, such consideration requires the approval of the lessor.

After the legal consideration, you may have the option to work with the tenant to install a system that meets with your approval.

Again, consulting with an attorney is extremely wise and suggested. Laws supersede what is written in contracts.

Aaron Yates · Answer

Is that the same in every state? I need to look into that then. Thank u. This particular client wants to buy the house and we are discussing options.

Roy N. · Answer

Aaron Yates

My caution to your advice would be by {knowingly} allowing your tenants to make capital improvements to your property, you open yourself to a claim of equitable interest in the property.

In the individual case of your example tenants, this probably will not occur, but as a general practice one should walk into this with eyes open to the possible negative consequences.

Sometimes penny-wise can be pound-foolish.

Tenant want to install security system, should I allow it?

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