The average renter has a misconception that the landlord is only concerned with the property’s condition when it is time to renew their lease; this couldn’t be further from the truth. The landlord is more likely to raise the rent if there haven’t been any significant renovations to the unit in a while.
Here are two reasons why renovating the unit is essential:
- It Shows the Tenants That They Care About the Property– Basically, unit renovations show that the landlord takes pride in their home. When potential renters see that the landlord has taken care of their property, it gives them peace of mind knowing that their belongings will be safe and secure.
- It Shows That They’re Serious About Renting– When prospective tenants see that the landlord has invested in their property, they are more likely to want to invest in s as well. This goes a long way in gaining rapport with potential tenants.
Unit Renovations vs. Lease Conversions
Renovating can have a significant impact on rent prices. Many people are looking to renovate their unit before they move out, but what are the consequences? If considering a renovation, here’s how it will affect rent:
If renovating an entire unit, the landlord may be more likely to offer a lease conversion instead of renewing the current lease. This means that instead of continuing to pay rent on an existing unit, the renter would become a tenant in the renovated space. This is excellent news if the tenant wants to stay in the same building, but unit renovations come with some caveats.
First, the landlord may require more than the current rent, especially if the renovation costs more than initially agreed upon when the lease was negotiated. Second, the lease term may be shorter than average because the landlord hopes the renter will move out once the renovations are complete. Finally, if not happy with the renovation results, the renter may have to leave and find another place to live.
However, if the landlord is renovating just part of the unit – for example, replacing one wall or updating a flooring – the landlord is more likely to offer a rent reduction.
Some Common Questions About Unit Renovations:
If the landlord wants to renovate the rental unit, does that mean the renter must leave?
No, the renter can stay in the home as long as they want and move out when the renovations are done – or just before that happens. All of the new rules for tax and insurance will remain in place up until the day they move out.
What does the landlord need from the renter?
The landlord will need written permission from the renter before starting any renovations on the rental property. This means the renter has to sign an agreement that clarifies what is allowed and what isn’t. The landlord also needs to get approval from the municipality where the property is located first, even if the landlord has a real estate development business.
Conclusion
If the landlord is thinking of renovating a particular unit, consult with them to see how it may affect the rent payments. In some cases and in many jurisdictions, landlords may require that the property be vacated during the renovation period to avoid any potential damage or disturbance. Others may allow for renovations as long as they are carried out sensibly and responsibly. Either way, it’s always best to get confirmation from the landlord before planning anything significant.
