If you’ve had a tenant in your rental for an extended period of time, you may want to reward them for their consistency and encourage them to stay longer. Or maybe you want to convince prospective tenants to stay for years and years. Either way, offering property modifications that they have some control over may be a beneficial way to encourage this outcome. Learn about property modifications for tenants and how you can use them to keep happy, long-term tenants on your property.
If you’re a landlord considering methods to encourage your tenants to stay in a rental property for longer periods of time, you may have considered allowing property modifications. Offering tenants some control in their living space is an excellent way to encourage them to take more ownership over their home. Additionally, it can benefit you as a landlord by allowing you to make upgrades to the property, which increases its overall value.
However, there are many things to consider when creating a policy that allows tenants to modify your property. A number of factors influence whether or not you should offer this option at all, but property modifications also have a variety of benefits to consider. Explore these pros, cons, and general information about modifying property.
When You Should Modify Your Property for a Tenant
With the exception of making legal accommodations for disabilities, modifying your property for a tenant is typically up to your discretion. Some landlords use modifications as a way to entice tenants to stay at their property. Others do it as a way to upgrade their property while cooperating with a tenant, benefiting both that tenant and the landlord’s property. Others still do so out of necessity.
If you choose to modify your property for a tenant, consider doing so for those who have stayed a long time. If a tenant has stayed and intends to stay for more than a few years at a rental property, offering some control over their property is an excellent way to encourage them to remain as long as possible.
When You Shouldn’t Modify Your Property for a Tenant
Modifying your property for the explicit purpose of benefitting a tenant can be risky as a tenant retention strategy. Not every tenant is going to stay on a property for many years, so it is wise to be selective about which tenants you are willing to modify your apartment for.
Best practice is to set a time limit for when you will modify a tenant’s property as a rule. For example, if you allow a tenant to paint their walls after a year of tenancy, the tenants who weren’t willing to stay that long will not have the benefit of painting their walls, nor will they require you to spend the money on painting those walls. However, those who do stay for over a year will gain the benefit of having control over their space.
Benefits of Property Modifications
Property modifications aren’t only beneficial to the tenant; as a landlord, you can benefit from allowing or enacting these improvements as well. Modifications and upgrades can increase the value of your property, making it a better investment. While your current tenant will appreciate upgraded appliances, new floors, or other improvements, your next tenant will also benefit from these changes.
Increases in property value benefit everyone involved, not just your tenant. As with any other property, a higher value would lend itself to increased rent for the next tenant, and a higher profit if you ever choose to sell your property.
Easy Modifications to Make for Your Tenants
Some property modifications are easier than others. For example, painting walls or replacing appliances is much easier than an entire remodel or renovation. Generally, smaller projects make excellent modifications. Consider the following options if you want to modify your tenants’ homes easily:
- Replace faucets and fixtures
- Install new shower heads
- Replace bathroom mirrors or vanities
- Replace light fixtures and ceiling fans
- Paint walls or add wallpaper
- Paint doors
- Stain wooden fixtures
There are many options for easy home modifications that your tenants will love, ranging from simple and easy changes to massive overhauls. Consider these or one of the many other options for easy projects you can even do yourself if you’re handy.
Learn more: Easy Rental Property Upgrades for Happier Tenants
Property Modifications as Tenant Incentives
You can easily use property modifications and control over them as an incentive for your prospective tenants. For example, encouraging them to stay for a set period or adhere to certain rules, with the offer of property modification options after a set time or before move-in, can be very effective. This is effective both when paired with other rental incentives and when used as a standalone incentive.
Learn more: A Brief Guide to Rental Incentives
Final Thoughts
Property modifications for long-term tenants are an excellent way to encourage longer stays among renters. Easy modifications, such as faucets, fixtures, and paint, can allow renters to feel as though they have control over their space, which in turn encourages them to stay longer and take more ownership over their property. While it is important to set expectations for tenants you offer these modifications to, it is highly beneficial to allow them. Whether as an incentive for certain behaviors or as a gift for good, long-term tenants, it is a great idea to offer this control where you can manage.
