Tenant Improvements – When Should You and When You Must Say Yes
It can be difficult or uncomfortable to respond to reasonable tenant requests. Of course there are requests that must be agreed to and some that are in your favor to do. But what about all those tenant requests from good tenants that are reasonable, but after all it’s your cost.
For the purposes of tenant improvement requests we see three different kinds of tenants.
The New Tenant: Often the requests come during the approval process or at the move in inspection. All requests having to do with a clean and functional place should be done by the move in. You want to start of your new business relationship on a good note. Nothing worse than starting an argument you know you will lose…and all those bad feelings wont help when you make a reasonable request.
Things we always say yes to:
Generally, electrical improvements are fixed and add value and marketability to the unit.
a. DSL
b. Cable
c. Hard wired outlets – Electrical needs have skyrocketed and we would rather hard wire than see too many appliances on one outlet
d. Smoke detectors – even if we are fully compliant. Cosmetic Requests to alter the unit
If the rental depends on some cosmetic changes such as paint or verticals, then its your call. We like to say yes to all reasonable changes but require that the unit be returned to its original condition on the move out. We also are careful to mention that it must be a professional job and that we provide no insurance coverage for any accidents “on the job”.
The Existing Tenant: Much of the above applies. The difference is there is less incentive to pay for cosmetics unless you want that tenant to stay.
The Disabled Tenant: Here you are bound by law and should be aware of the rules and avoid law suits you can only lose. As always, with ownership its local and the rules will be different for your area.
Federal Fair Housing Law: The federal Fair Housing Act and local fair housing laws prohibit discrimination against people because of their disability or the disability of anyone associated with them.
Require owners and managers “to make reasonable accommodations or modifications in rules, policies, Practices, or services, when such accommodations may be necessary afford such person(s) equal opportunity to use and enjoy a dwelling. If an applicant has a physical or mental disability (including hearing, mobility and visual impairments, chronic alcoholism, chronic mental illness, AIDS, AIDS Related Complex and mental retardation) that substantially limits a major life activity or a record of such a disability or is regarded as having such a disability”.
Who Pays for the Improvements: Its important to be clear here so we are quoting form the HUD web site.
Reasonable Accommodations: The housing provider is responsible for ensuring general access to the facility and meeting minimum accessibility standards. This may include an adaptation or modification to a policy or a service, which will allow a person with a disability to use and enjoy a dwelling and the common use area.
Generally, the applicant or tenant must make a request for an accommodation. Your tenant will describe the need and it is a good idea to have any requests to accommodate in writing and kept for your records in case of any misunderstanding later on.
You can ask the tenant to provide proof of a disability (some disabilities are hidden). Medications and other specifics are a private matter and may not be breached by the housing provider.
A definition: Acceptable accommodation or modification cannot cause undue administrative or financial burden for the owner/manager, and cannot fundamentally alter the housing and services the owner/manager offers.
Reasonable Modifications: Landlords must allow disabled tenants access and enjoyment of the building. Disabled tenants can make the modifications and accommodations that will provide them with reasonable safety and enjoyment. The owner/manager may condition permission for a modification on the tenant providing a reasonable description of the modifications and assurances that the work will be done in a professional manner with required building permits. All modifications must be reasonable and require prior approval. You may also require an additional deposit to assure restoration to its prior condition.
Examples: Ramps for wheelchair access. Modifying locks, cabinets or appliances. Special faucets or handles on sinks tub or showers and more. When you are in a situation you think may be a Fair Housing issue, always talk to a professional property manager or your local apartment association, yourpropertypath.com has an extensive list of apartment associations in the Resource Center.
Howard Bell for yourpropertypath.com
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