Being a landlord is not an easy pill to swallow. Making money out of an investment property is one of the biggest opportunities that is available. Low-stress and high-income job; but it can be tricky at times. Renting the property is a good source of income, but a time comes when you need to upgrade your property. However, whether you want to upgrade to your rental or simply want to perform routine maintenance, it is not as easy as you think. Things are complicated when there is an involvement of tenants.
If you plan to get the renovation done, it is important to know about your rights and learn about the tenants' rights. There are plenty of reasons for the improvements; and the benefit is, and to be enjoyed by the tenants. However, you need to respect the residents' rights. Planning to perform some chances; keep on reading!
Lease documents:
Before planning for maintenance, go through your respective tenants' lease. Each lease agreement is different; hence you cannot expect it to be similar to your friend's agreement. Besides, every lease agreement has a standard process for making necessary repairs. However, if your lease states a different procedure, you must follow the outline regulations. Also, leases are legal contracts; and you are bound to follow the law.
Understand your right:
You have the right to perform routine maintenance, or you can do it if you are planning for a renovation. But, when a property is rented, you are legally required to make some improvements and repairs; by keeping the law in mind. There are some states; you are bound to provide a reason to the local state before making any changes. You cannot enter a tenant's boundary without permission. Therefore, if there are any renovations required, involve the tenant; send a written notice. Besides, if your renovation or maintenance is not impacting the tenant's personal space, you may proceed with the plan.
Communicate with the tenant:
If you plan for some renovation or maintenance, we would advise you to communicate with your tenant. Ensure that things go smoothly; you are legally obligated to notify them about the changes promptly. The majority of the people do not take the construction and renovation seriously; until the tenant sends them a legal notice. Getting a legal warning from the tenant can disturb the image of the property. Not to mention, there are ways to work out arrangements that can satisfy everyone. In addition to this, you need to communicate with the contractors as well. The contractors are also bound to respect your tenants' rights.
Violation of privacy:
Violation of privacy and infringement of space is an important factor. You cannot just outsource the work to the contractor. However, there is a lot you can do to protect your right and your tenant's rights. Be it a barking dog or a blocked entrance can constitute an impairment of those rights. We would recommend you to have an open and honest conversation with your tenants. If your tenants are okay with a small inconvenience, you may carry on with the work. However, if your tenants are not okay with the maintenance, you have to respect their choice. Also, you need to share a plan of maintenance. You are cutting off access to a bedroom, turning vital resources like power and water, restricting outdoor space, or anything else. It will help if you communicate everything with transparency.
It's not like you do not have the right to renovate your property. But, as per the agreement, you need to communicate with the tenants. Try to work together to find something that makes sense for everyone.
Compensation:
Lease terms and conditions are different for everyone. Also, each state follows a different rule of lease. Firstly, you need to read the agreement before planning for a renovation. Secondly, you have to send a written notice to your tenants describing your plan. However, if you plan to renovate your property during your tenant's lease term, try to provide them with compensation. You can either reduce the rent during the project or think about something else. Reducing the rent is not an ideal situation; you can offer your tenants something in return for the inconvenience to make them feel respected.
What about the landlord's rights?
Equally important! To upgrade and maintain your property is your legal right. Also, maintaining the property increases the value of the resource. You have the right to renovate; the tenants also have the right to object. There are many ways to navigate the balance, and it also depends upon the project, residents, and specific situation.
Also, there are a lot of ways to improve your unit without causing trouble to the tenants. With proper communication and honesty; and a bit of negotiation, you can perform the maintenance.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.
As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
