Tuesday, August 2, 2011

Negotiating Renovations: Renovate Your Property

Your floors are scruffed, the paint is peeling and the kitchen cabinets are hanging by a hair. Rental property, especially if it is an older one, periodically requires serious renovations. However, sue to lack of communication between landlords and tenants, they are usually delayed.
Negotiations are key when it comes to getting the renovations done. That is why it is best for the landlord and tenant to dettle on ters regarding renovations and upgrades before the deal is sealed.
However, in most cases this problem is tackled only when the need arises and almost always results in altercations.
To prevent this, here are some tips to consider:
1. The rental contract should clearly state the extent of renovation work that can be carried out and also the roles and responsibilities of the tenant and landlord.
2. Send your request for renovation to the landlord via certified mail and ask for a receipt; keep a record of your correspondence as it may come in handy in case of any legal action.
3. If you don't hear back from your landlord, ask an objective third party, such as your real estate agent, to assess the situation.
Alternatively, you can refer to the lease agreement and seek legal aid. If the contract has a renovation clause, deduct the cost of permanent renovations from the rent and save the receipts as proof.
4. Landlords are more willing to pay for practical renovations such as paint jobs, plumbing and electrical work, and security installations such as barbed wires; cosmetic upgrades are less likely to be sanctioned by property owners.
5. A major concern for landlords with renovation requests is time investment; they will be more willing if you offer to do the leg work, which includes finding a contractor and supervising the job yourself.
6. In case the landlords requests the tenant to pay for the renovations, with the understanding that he/she will be reimbursed later, the tenant should invest only 50% of the total amount which can then be deducted from the rent.

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