How to Renovate Tenant-Occupied Properties
As a landlord, you may become inspired to do some renovating to your income property. If you already have a tenant in the property, it can be a little challenging to complete renovations when the home is already occupied. Despite the challenges, it is possible to update a kitchen, bathroom and more. If you follow a few key recommendations, the process can go smoothly, for both you and your tenant. Here’s how you both can work it out and enjoy an updated home once the renovations are complete.
Plan, Plan, Plan
You may be paging through catalogs of inspiration, which can fuel the urge to set out on completing some renovations to your rental property. It can be exciting to see the new trends and colors that are popping up everywhere! Before you begin the process, you should set some time aside to come up with a feasible and realistic plan. Conducting a cost-analysis is a great place to start when determining if interrupting your current tenant’s enjoyment of their personal space and right to quiet is worth the improvements you’ll be making. If you are unable to put off the renovations until the property is vacant, it may be necessary to complete the work while your tenant still resides in your property.
Communication is Key!
If you decide that it is best to complete the renovations with your current tenant in place, communication between the tenant, any contractors, and yourself is essential to reduce the likelihood of putting your tenant out and avoid your tenant being surprised by a maintenance person entering their home. This applies to the hours and scope of work that will be completed. Effective communication with your tenant can help to prevent the tenant taking legal action via their expectation of quiet enjoyment. Take some time to meet with your tenant and walk them through what they can expect regarding the work that will be done. Cover details like when it will start, what times the tenant can expect you or a contractor for the purposes of working on the renovations, and when the job is expected to be completed. During this meeting, you can also talk with your tenant regarding any questions, comments, or concerns they may have surrounding the renovations to their home. Some tenants may have sensitive health conditions which require them to limit exposure to dust and debris, which are commonplace when conducting renovations. Be prepared to address these and other concerns the tenant may have during the walkthrough prior to beginning renovations.
Colorado Covenant of Quiet Enjoyment
One of the rights and responsibilities that are applicable to renovating a tenant-occupied property pertains to the tenant’s expectation of peace and quiet. This also includes the hours during which you or a person contracted to complete the renovations can enter the tenant’s residence. If the tenant experiences a breach of the covenant of quiet enjoyment, there can be legal action taken against the property owner. So read up on all the various legal aspects associated with renovating a tenant-occupied property prior to starting the process.
Conclusion
Renovating kitchens and baths can sometimes bring about the ability to increase the amount you are able to charge tenants for rent. However, if your tenant is currently occupying the property and is under a lease, there are some legal considerations that should be explored to make sure that you and your tenant maintain an amicable relationship during the lease period. If this looks a bit daunting, you may want to consult with a property management company to take some of the weight off your shoulders. A competent property management company can handle the day-to-day responsibilities, as well as scheduling to make sure that the contractors are able to work around your tenant’s schedule and preferences during the renovation period.
References
American Apartment Owners Association. (n.d.). Colorado Landlord Tenant Law. Retrieved from https://www.american-apartment-owners-association.org/landlord-tenant-laws/colorado/
Avvo. (2013, June 14). Can a landlord do construction on a rental home? Q & A. Retrieved from https://www.avvo.com/legal-answers/can-a-landlord-do-construction-on-a-rental-home-wh-1281000.html
Star Tribune. (2017, November 17). Renting and the law: Landlord wants to renovate before tenant moves out. Retrieved from http://www.startribune.com/landlord-wants-to-renovate-before-tenant-moves-out/458273143/
Tenant Verification Service, Inc. (2017). Landlord Tips: Remodeling Tenant-Occupied Properties. Retrieved from https://www.landlordtalking.com/tips/landlord-tips-remodeling-tenant-occupied-properties/
