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Long Term Tenant (20 yrs!) asked to Paint Apartment Brown

Nir

Nir

0
REIN Member
Joined
Dec 5, 2007
Messages
2,880
Hi,

He is a good tenant. been there for 20 years and recently asked to paint most of the apt (1-bdr) in brown. On one hand has been a good long term tenant, on the other hand it is not a standard color and the tenant is paying very low rent so long term doesn`t necessarily mean good for business in this case.

Should I just agree to him painting brown? (I`m tempted to say yes, perhaps I pay for the paint only, but wanted to share my dilemma here)

Thanks,
Neil
 
QUOTE (investmart @ Aug 14 2009, 12:29 PM) Hi,

He is a good tenant. been there for 20 years and recently asked to paint most of the apt (1-bdr) in brown. On one hand has been a good long term tenant, on the other hand it is not a standard color and the tenant is paying very low rent so long term doesn`t necessarily mean good for business in this case.

Should I just agree to him painting brown? (I`m tempted to say yes, perhaps I pay for the paint only, but wanted to share my dilemma here)

Thanks,
Neil

I`d let him. The lifetime value of a tenant like that goes beyond the rent. Stability in a building is very important.
 
If I wanted a brown room I would say yes. If I did not want a brown room I would say no.
However if the guy is staying forever I guess he could paint it paisley and it would not matter.

On the other side if he has been there 20 years the rent must be WAY below market. This in my opinion is not a good tenant to have in Ontario.
It is impossible to make money in Ontario with long term tenants. Closer to running a charity than a business.

Would you prefer to get a new tenant at current market rates and make more money ?
 
Whenever I allow a tenant to paint, I always throw in the stipulation that they have to repaint it when they leave if I ask. I tied it into their damage deposit. It gets a lot of good will.
 
Unfortunately for us in Ontario we are not permitted to collect damage deposits otherwise that would be a workable option.
 
Greg - If you want him out say no. I often OK requests like this but in the context of someone you want to keep happy.
 
Thank you all for the valuable feedback! I think I will just agree in this case..

Regards,
Neil
 
QUOTE (invst4profit @ Aug 14 2009, 01:37 PM) Unfortunately for us in Ontario we are not permitted to collect damage deposits otherwise that would be a workable option.

I would still seek the agreement that they would paint it a colour of your choosing upon moving out. Even without the tie-in to a Security Deposit that is not available - what have you got to lose? If they are honourable they will do it, of not you are no worse off than if you did not ask for this condition.
 
Unfortunately in Ontario I have foud long term tenants are a detriment to the business bottom line and for that reason prefer they move out. I am not motivated to make them "happy" if it means I lose money.
Do not misunderstand I do not intentionally treat tenants bad to get rid of them I am simply not motivated to keep them happy by granting there wishes if it encourages them to stay long term.
The Ontario government has created a situation where by good long term tenants are destroying this business in many areas.
 
QUOTE (invst4profit @ Aug 15 2009, 07:23 AM) Unfortunately in Ontario I have foud long term tenants are a detriment to the business bottom line and for that reason prefer they move out. I am not motivated to make them "happy" if it means I lose money.
Do not misunderstand I do not intentionally treat tenants bad to get rid of them I am simply not motivated to keep them happy by granting there wishes if it encourages them to stay long term.
The Ontario government has created a situation where by good long term tenants are destroying this business in many areas.

Hi Greg,

I wouldn`t generalize about long term tenants in Ontario. It should be evaluated on a case by case basis. A good long term tenant (say 10yrs, 20 yrs!) who is paying no more than $100 below market rent, is in my opinion an incredible asset for the landlord. Just imagine how many less headaches you have. Just one example: a long term tenant, only rarely, does not pay rent on time (otherwise they would be kicked out long time ago).

Only from a certain % or $ below market rent, I agree it starts to influence the business negatively.

Regards and thanks again everyone for the interesting discussion,
Neil
 
In my business plan $100 below market is HUGE.
I presently have 12 that are around $100 below market adding up to $1200/ month, $14,000/year. If I could find a way they would all be gone but I can`t so I continue losing money on each one of them every month. Yes I do see below market as Losing money.
I do not see long term tenants as being better than new tenants simply because the have a good track record.
This attitude instilled by REIN does not work for me.

I have 6 new tenants in the past 12 months and so far every one has worked out as good as any of my long term.

Long term tenants are definitely not worth it to me to supplement their rent to the tune of $100/month.
It is simply bad business for the bottom line which is of prime importance to the health of my business and impacts every tenant.
 
QUOTE (invst4profit @ Aug 16 2009, 08:27 AM) In my business plan $100 below market is HUGE.
I presently have 12 that are around $100 below market adding up to $1200/ month, $14,000/year. If I could find a way they would all be gone but I can`t so I continue losing money on each one of them every month. Yes I do see below market as Losing money.
I do not see long term tenants as being better than new tenants simply because the have a good track record.
This attitude instilled by REIN does not work for me.

I have 6 new tenants in the past 12 months and so far every one has worked out as good as any of my long term.

Long term tenants are definitely not worth it to me to supplement their rent to the tune of $100/month.
It is simply bad business for the bottom line which is of prime importance to the health of my business and impacts every tenant.

ok maybe $50 max below not $100. Don`t forget the cost savings. for example no vacancy in 20 years and no need to search for tenants in 20 years. is that not worth some money for you!? of course it does. I`m sure you understand the idea, perhaps do not agree on the number. actually length of tenancy is just one aspect, the more general topic is good tenant VS. bad tenant and their implication on rental business.
 
Fortunately for me, unlike most LL, I do not have vacancies and I do not need to search for new tenants. My existing tenants find replacement tenants and pay rent up till the new tenants take over. All I have to do is screen the applicants which is another reason, for me at least, I would very much like to see 100% turnover of my tenants. I could increase the rent for all of them.
Admittedly I may be unique in that respect but that is one reason turnover is a good thing for me.
Regardless I have never considered below market rent as acceptable.
 
QUOTE (housingrental @ Aug 14 2009, 03:14 PM) Greg - If you want him out say no. I often OK requests like this but in the context of someone you want to keep happy.


I had a great tenant ask to paint a wall in white board paint, and I agreed with the stipulation that they had to repaint over it not just before they moved out, but as soon as they gave notice and I started showing it to potential tenants. They were happy with that. As long as it looks appealing to future tenants when they come to see it, I don`t see the harm in it being any colour they want while they are living in it, plus it will be freshly painted to show which is a bonus.



I recently did an apt with a brown accent wall in the living room and it looked fantastic!
 
QUOTE (invst4profit @ Aug 16 2009, 10:30 AM) Fortunately for me, unlike most LL, I do not have vacancies and I do not need to search for new tenants. My existing tenants find replacement tenants and pay rent up till the new tenants take over.


How do you do this??
 
I moved out of owning/renting homes and bought a Mobile Home Community. The homes however are not mobile.
Residents all own there homes and must sell in order to move. I simply have to screen the buyers the same as any regular rental applicant prior to my approving the sale of the home.
Without my approval they could still sell the home but the buyer could not live in the park.
If there is any money owing to me it is a condition of approval that the seller settle there dept before I approve a sale as well. Or if lot rent is not paid I can put a lien on the home.
I even continue to receive rent in the event of the death of a owner or a Bank repo as the estate or bank continue to pay my rent.
The biggest problem is that most of my tenants are seniors and stay a very long time. Although they are exceptional tenants and generally take great pride in there homes (except for the usual 10%).
 
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