How can I get my tenant to pay for upgrades? Can I get around rent control max with special request?

by | Indiana real estate, Indy Anna, Real Estate Investing

How can I get my tenant to pay for upgrades? Can I get around rent control max with special request?

If you’re a landlord dealing rent control and/or rent caps, how can you have your tenant pay for upgrades?  Here’s a simple way to look at these opportunities and help yourself and others do these deals correctly.

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This is a quick video I made about  a Hero’s experiment…

How can I get tenants to pay for upgrades? How to get around rent control max and have tenants pay for upgrades?

Indy Anna explains:

  • How to get your tenants to pay for upgrades

  • Can you do this in areas with rent control?

  • Free downloadable contract to be used in some areas 

So, this question came in from a landlord in a State where rent control is in place, and they wanted to know about legally charging their tents for upgrades. Now to be clear, for this to work legally, it needs to be at the tenets request. Here’s an example;

The landlord had long term tenants in place that had been in the property for 10 years. The landlord (following general maintenance) told them he was going to replace the current and worn down carpet with new carpet.

Who should pay, the tenant? 

Now in  this case, the tenant requested that the landlord put in laminate flooring, and offered to pay the difference between the carpeting the landlord was going to install vs the price of the laminate. The landlord had no issues with this request, but wanted to go about it legally as they were already at the State rent control max for rent. 

So, in this case it’s actually broken down two ways; 

1. In a State where there is a rent control cap and you’re under it, you may be able to simply break up a cost like this (only at tenants request) over 12 months/terms of the lease agreement and simply hold off until it’s time to renew the lease, therefore raising the rent to cover the cost of the update as agreed upon. 

2. In a State where there is a rent control cap and you’re at it already, it’s possible to break this up into a personal loan and exclude it from the rent. Basically an unsecured personal loan over agreed upon terms by you as the landlord and the tenant.

Remember work with YOUR tenant before any changes. 

Now to be clear, you cannot charge your tenants for things that you are legally bound to offer them in your State’s housing description. 

This is truly done best in cases of long term renters that have special requests. You will need to have in writing who keeps what at the end of the lease terms if renewal does not transpire, but again you can make this part of the unsecured note of the personal loan.

A free download Promissory Note can help 

To make this as simple as possible, I’ve included a free download that can be used in most areas as a zero interest unsecured note for the type of scenario I’ve described above. Please verify you can use this State first; link will be below as well to download.

You can download the Promissory Note for FREE below on this page.

Remember, you can’t charge your tenants for things that are necessary maintenance and repair as it strictly coincides with your State’s outlined landlord responsibilities in provisions. Requests however are allowable if agreed upon. 

So, to recap-  I’ve covered how you can get tenants to pay for updates, how you can get tents to pay for updates if you’re already at your State max rent control cap, and I’ve given you a FREE little template for an unsecured promissory note. 

This is an example of the Promissory Note .pdf from the video, you can download it (for free) HERE.

For a bunch more FREE contracts and downloads for landlords you can check out great post on 14 ways to screen tenants and avoid bad tenants from hell.

As I explained in a previous video, since so many people have asked me to help them with deals outside of Indy, I’m open to that in the right situations.  So if you want help doing real estate deals in Indy or outside please text or email me and I promise I’ll do everything in power to take care of you and make sure WIN.

You can text/email me anytime:

Email: Love (at) BigReia.com

Phone: 317-969-5619 (That’s my direct line and YES I actually answer lol, so please text me first)

And as always,

Make the universe SMILE =  )

~ Indy Anna

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Thanks so much!  = )

Make the Universe Smile.

~ Indy Anna
Love (at) BigReia.com
(YES that's my actual Direct Line and I really do answer lol, so please text me first Thx!)

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