Our tenants have been in the unit for 17 years. They have been good paying tenants that are respectful of the property. Back in 2007 we were still putting in carpet. The carpet is showing its age. At a location by the sliding glass door the sun has severely damaged the carpet- we can cut the carpet back and put in vinyl planks in this entryway, but the carpet is showing other signs of wear, a seem in a bedroom doorway is failing and the carpet is wearing out in several other traffic areas.

During turnovers in other units, we have been replacing the floor from wall to wall with vinyl planks. At the same time the bathroom vanity, bathtub, lower kitchen cabinets are replaced. These are expensive rehabs.

The question we have been struggling with is what to do. If we replace the carpet with vinyl planks, how do we deal with the tenant’s belongings, who moves the furniture and other belongings out of the way while the floor is being installed.

Does it make sense to do a full rehab with tenants in place? Should we just do the floor? Should we do nothing and not renew the Lease when it ends and then do a full rehab?

If you undertake floor covering replacement while the unit is occupied, you should expect to move the furniture from one room to another and back again.

I would not do a major change like this with tenant belongs in the house. One time I had tenants who had perfectly fine carpeting but really wanted tile floors. My installer said there was no way he would install the floors unless they completely vacated and emptied the house for a full week.

They did just that. Packed the garage full of their stuff and stayed with someone while the work was done. They also agreed to a monthly rent increase for the unnecessary upgrade.

ONLY if they complain / ask for something new:

Dear tenant, I can give you some of options:

1) Leave the carpet and the rent as they currently are - maybe consider covering a worn area with a throw rug.

2) Replace the flooring just in the living spaces - where guests see it - for a rent increase of $XX.xx. You will need to remove everything from that space yourself for (how long) and return it afterwards by yourself.

3) Replace the flooring in (more space) for a rent increase of $XXX.xx (more money). You will need to remove everything from that space yourself, vacate the premises for (how long) and return your furniture afterwards by yourself. Full rent still needs to be paid during this time.

Rather than doing all the cabinets while occupied (too much, I think), you could go up to the edge of them with the new floor. Buy and keep extra flooring - enough to cover the rest of the floor under the cabinets in the future, in case you want to or if the new cabinets have a new footprint.

Is there rent at market?

Do you want to keep these tenants longer?

Do they deserve an upgrade as it sounds like they do?

What type of flooring would they like, they are the ones living there?

What is the real cost of not renewing, rehabbing, vacancy, and finding another good renter?

What are the odds of finding another good renter?

Do you have another place that they can move too?

What am I hearing you say?

Your tenants have paid the place off for you - now what? Long term tenants are as good as gold. They should be treated with respect so you might want to put yourself in there shows.

If you do a complete rehab, they need to move. Do they want a complete rehab and have to move themselves? Perhaps the two sides can settle for a place in the middle where both sides are happy.