Question - I have a tenanted property and want to upgrade one of the two bathrooms.
Has anyone done this before?
I imagine that the tenant can be offered a temporary rent decrease for their inconvenience if they agree.
Anyone have experience in these things?
Upgrading a bathroom = weeks (at least) of inconvenience for the resident.
The discussion with the resident needs to be an offer only, and if they refuse that is the end of the matter. Even if you convince the resident that they will enjoy the upgraded bathroom after the works are complete, what guarantee have they that the rent will not increase or that any existing lease may not be renewed.
All options are on the table (reduction for the duration of the works+extension of the lease for more than the contracted amount of time)
And if they say No?
As someone said, wait until the lease runs out.
You planning on selling the property?
Or is the bathroom leaking/falling apart?
90s style bathroom. Perfectly functional.I want to live there one day, hence the reason for wanting to do a quality upgrade.
Obviously for tax reasons it's better to do it while tenanted.
Just do it when you move in.
Who knows what bathroom styles will change between now and then.
Would you really want tenants to use a brand new bathroom if you intend to live in there?
I'd want to be the first to be use the shower basin etc.
If I was the tenant and you asked if you could renovate a bathroom, I wouldn't be happy.
Look, you can ask, but if they say no, just be like, okay I was just asking, have a nice day.
Yep. Wonder why owner can't wait to do the Reno when he moves back in? Oh, wait… Tax incentive… better to inconvenience someone else…
the tax incentive is still there if it's vacant with intent to continue leasing it post-renovation. I don't plan to move back for a few years, but I wanted to give the tenant the option of staying on.
why don't you wait until it's vacated?
i don't think tenants are going to be happy with the noise/interruptions/visits from random people and the fact there's no bathroom.
upgrade one of the two bathrooms.
It has two bathrooms so they can still use one but depending on how many people live there that can be an inconvenience too.
If I were the tenant I would be fine with it if the bathroom is in disrepair though if it's just an upgrade it would annoy me. If it's the latter and I'm working from home I wouldn't want to be paying much rent during this period and/or wouldn't be very accommodating.
I would just upgrade when the time to move in comes & enjoy my brand new unused by anyone bathroom.
100% agree.
Is a tax deduction that important?
As a tenant, I think its fantastic you want to upgrade the bathroom. However; if my bathroom was functional, and I hadn't raised any concerns with you about it, and you then call and tell me you want access to renovate it, it starts massive alarm bells ringing for me.
Things like:
- Are you renovating to raise my rent?
- Are you going to end my lease and re-advertise the property at a higher amount?
- Are you planning on selling?
- Are you going to ask me to move out in 60 days because you want to move in?
I had a landlord ask if his bank could come through and value the property as it was needed for a mortgage refinance. I asked him point blank if he was thinking of selling, he reassured me that he wasn't. This made me a bit wary but you can't really refuse access so let them in. Three days later - Notice to Vacate issued as landlord is selling with vacant occupancy.
Its the risk you run as a tenant, but be prepared for questions and the possibility the tenants might break their lease (due to you breaching their right to quiet enjoyment of the property during the renovation), or giving notice if they are on month to month.
Yep. The first port of call is to talk!
technically 'renovation' is the same class as 'entering to have a cup of tea', and you don't have an outright 'right' to enter unchecked