Recently, when my student tenants come to me wanting a house/apartment improvement, I tell them I'll do it for x cost. For example, my tenants said they'd like to add another refrigerator, and I told them I'd install a third refrigerator for a one-time charge of $200. After they move out in 1-2 years, I cover the "improvement" cost in a rent increase.

Now I'm thinking, why wait for them to ask me for an improvement, why not go to my tenants and ask them if if they like to have an improvement "x" for a cost of y?

For example, I'm thinking a garage door with an opener at a cost to me of $2000, would be a good improvement for my 8 bedroom house . Figuring a 5 year payback, I'm gona ask them if they'd like to have a garage door with an opener and keypad for a one-time charge of $400?

Have you ever offered an improvement to a tenant for a charge? It seems like charging for an improvement is a nice way to "test" if an improvement is something tenants are willing pay for.

Ummm, no. As a former tenant, I don't see anything here that would make me happy and a lot that would make me very angry and cause bad feelings. No garage door opener? That's bad.

If the students want another fridge they buy it and it's theirs.

Bill,

I have taken a similar approach as you have. In some cases, a tenant will ask for an upgrade and if it makes sense, I will name either a 1 time price or a monthly increase in rent.

Bill,

I have taken a similar approach as you have. In some cases, a tenant will ask for an upgrade and if it makes sense, I will name either a 1 time price or a monthly increase in rent.

Different if you are doing the asking. I agree with AllyM

And why should they have to pay for a new garage door. Place should already have one in good condition.

my first impression was a door opener for an 8 BR place could be worn out pretty quick. I dunno if I would want to open that worm can.

By introducing a garage door opener at their expense, all you're doing is reminding them that manual garage door opening stinks and you're going to up their rent. I'd also think you're nickeling and diming me to pay for YOUR upgrades.

Upgrades should be done either as an incentive that you were going to do anyway, to entice a tenant to renew, or after they leave and you improve it for higher rent.

Point well taken about the garage door opener. I will say I have never offered a garage door opener (or keypad) and only a manually opened door. As Frank mentioned, I am concerned with the longevity of the door opener. At my own home, the opener seems a bit finicky. For example, junk sticks to the bottom of the door and trips the sensor, not letting the door close. I only wanted to provide the door opener if it was really something my tenants valued.

The door opener was an example of testing tenant demand for an improvement, by offering it to them with a one-time charge. My tenants would like a lot of improvements, but the one-time charge asks them to put their money where their mouth is, and allows me to gauge tenant demand for particular improvements.

And James, what you said about "I offered to furnish the w/d for a slight premium" is what I'm thinking basically.

I learned this "improvement" trick from Mr. Landlord, Jeffrey Taylor. In his books and at seminars he would teach us landlords to offer applicants items at a cost.

For example, does my new tenant want a "Standard" unit?

Does my tenant want a "Totally remodeled unit with all new appliances? Or do they want a "Custom" unit with just the things they needed.

So in my 16 unit building when I had 7 vacancies, I put this to the test. Here is my offer:

Standard unit, cleaned up nice but with old shampooed carpet, touched up paint and several year old appliances.

Price $600

Remodeled unit, knew kitchen, bathroom, wood floors, custom window coverings and all new appliances. Plus wall a/c unit.

Price $1000

Then most of my applicants said, what will it cost if I get a standard unit but with laminate floors, a new refrigerator and an a/c in the living room window.

This custom price for this upgraded unit $750 month.

Kyle, I guess I should have said "offer them a garage door opener and a keypad" not "a garage door with an opener and keypad". All my house come standard with garage doors :-)

I'm under rent control, so that's why I do a one-time charge for an improvement, but I should look at offering an improvement as a monthly charge. Would be a more attractive offering, I think.