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Property Management 101: Dealing with Unauthorized Tenant Alterations

Sudden Valley Tenant Using a Drill With His Dog Watching

It’s a common scenario for landlords in Sudden Valley: your single-family rental home lease explicitly prohibits tenant alterations without permission, yet tenants sometimes proceed with unauthorized changes. Understanding how to professionally address these situations, while adhering to local laws, is crucial. This guide provides actionable steps for landlords navigating unauthorized tenant alterations.

Understanding Tenant Alterations

Tenants may alter your rental property for various reasons, even if your lease agreement prohibits it. These alterations can range from minor fixes to significant customizations.

  • Minor Fixes: Tenants might attempt to repair worn or broken features, often with good intentions.
  • Customizations: Tenants may seek to personalize the property, potentially with permanent changes.
  • Common Example: Interior wall painting is a frequent unauthorized alteration. While it might seem like a “free paint job,” the quality and color choices can negatively impact future rentals.

Regardless of the tenant’s intent, landlords must understand how to respond to unauthorized alterations.

Young woman painting a roomKey Distinction: Repairs vs Improvements

Before confronting a tenant, distinguish between repairs and improvements :

  • Repairs: Actions taken to maintain the property’s operational condition.
    • Example: Fixing a leaky faucet.
  • Improvements: Changes that add value, extend lifespan, or adapts the property.
    • Example: Installing new kitchen cabinets.

If landlords neglect necessary repairs, tenants may feel compelled to take action. However, this differs significantly from substantial alterations like landscaping changes.

Fixtures and Property Condition: The Legal Considerations

One of the biggest legal questions from any judge would be whether the alteration is permanently attached to the property or not. It is important to establish this because anything permanent your tenant does will typically be considered a fixture and cannot be removed. These kinds of alterations automatically become part of the property, unless you don’t want them to be. Most lease documents state that it is the tenant’s responsibility to restore the property to the condition it was when they started living there. This makes them legally and financially responsible, if they made changes, to change it back to the way it was before.

Essential Lease Clauses for Protection

You can enforce a lease clause in court more effectively if you have the proper language in your lease. As you prepare your lease documents, make sure you include clauses that detail the type of improvements that are permitted and what the consequences are for any unauthorized “improvement” or repair that devalues the property.

You could state in your lease that your tenant forfeits all or part of their security deposit to cover the cost needed to restore the property to its original condition. You may also include a statement in your lease that if you decide to keep any change your tenant makes, they must leave any fixtures they’ve added behind.

If a dispute arises, having clear lease language and good documentation of all your communications with the tenant can increase the likelihood of you winning your case. If the matter does get to court, the judge will typically consider both the tenant’s intentions and the nature of the changes and also determine if the alteration is a fixture you get to keep or not.

How to Handle Unauthorized Changes: A Step-by-Step Guide

  1. Document the Alteration: Take photos and videos of the changes.
  2. Review the Lease Agreement: Verify the relevant clauses.
  3. Communicate with the Tenant: Discuss the alteration and its implications.
  4. Determine the Nature of the Change: Is it a repair or an improvement? Is it a fixture?
  5. Seek Legal Advice (if needed): Consult with a legal professional for complex situations.
  6. Establish a Resolution: Determine if the tenant must restore the property or if you will retain the changes.

 

It can be a challenge to handle tenants who go ahead and make unauthorized changes to a rental property. That is why having a professional Sudden Valley property management company do it for you can be an asset. Contact us online or call to learn how we help rental property owners with everything from drafting lease documents to property maintenance.

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