Attract more tenants to your rental by selling your property as the perfect home that doubles as a work oasis. Since the lockdown, it’s no surprise that more companies are adopting a hybrid or remote work setting, allowing more flexibility to make a living without leaving the comfort of their homes. As a result, in addition to aesthetics, security, and amenities, more and more renters want houses that have conducive work environments or landlords who are open to allowing them to set up a home office. But because creating such spaces sometimes involves modifying your rental, balancing work and living space in tenancy agreements is more crucial than ever. So let’s run through this quick guide of what landlords and tenants need to consider to ensure harmony and productivity.
Defining Home Office Space within Tenancy Agreement
Fair Allocation of Utility Cost
Establish a fair method of allocating utility costs to avoid landlord-tenant disputes. For property owners that include electricity and WiFi costs in their monthly rent, it can be tricky navigating the extra charges that come with a tenant who needs more power or internet than you’ve budgeted for. The added utility costs could be a major source of contention when renters can’t cut back on their usage because they need it for work, and landlords don’t want to cover the added expenses. That’s why both parties need an honest and open sit-down to discuss fair usage and look for alternative solutions that make everyone happy.
Restoration Obligations at the End of Tenancy
Outline your policies on property restoration to steer clear of misunderstandings at the end of a tenant’s lease. If you need to make permanent modifications to your rental to create a home office by adding walls to make a separate room or installing additional electrical outlets, you need to discuss these changes with your landlord before moving forward. Some property owners are absolutely against such drastic changes, but others are cool with it as long as you promise to change the home’s layout back to the original at the end of your lease. But it’s not enough to get a verbal agreement, if possible get it in writing for future purposes to ensure both parties are on the same page. You should also discuss plans on how to properly define work-from-home in the lease agreement with an expert property manager in Northern Virginia.
Tenant’s Rights to Home Modifications
- Get Permission
Ask for approval before making any changes to your apartment, even if they seem harmless. While some landlords are cool with tenants customizing the house to suit their needs and tastes, others can be particular about even bringing in extra furniture. So to avoid getting a security deposit deduction, run any ideas you have about modification by your landlord or property owner first, even if your lease says you can. By asking for permission before starting on your project, you show mutual respect to your landlords, and they’ll be more inclined to grant your request and even help where possible.
- Shoulder the Cost
Find out how much it’ll cost to create your ideal working environment and prepare to shoulder the expenses. It’s one thing to get the green light to proceed with major structural changes, but in most instances, the landlord is not responsible for the final bill. As a result, it’s your responsibility to ensure you can cover it, as well as the cost of restoring the apartment to its original form if need be.
Landlord’s Potential Restrictions and Consent Requirements
- Outline Clear Policies
Put down your policies on modification in writing to avoid unnecessary mix-ups. If you don’t have a clause in your rental agreement that talks about rental modifications, you risk allowing tenants to make changes that could damage your property without consent. Remember that not every renter is going to have the courtesy to run a change by you, but if you have set policies on what they can or can’t do, they’re more likely to stick to it. And even if they don’t, landlords have sufficient grounds to deduct it from their security deposit.
- Be Flexible
Consider adding amenities for tenants who work from home to utilize during their lease. After all, why stop at allowing renters to make changes when you can do it yourself and charge more for it? Instead of risking tenants doing shoddy work of knocking down walls or using sub-par materials that could permanently damage your property, offer to give a helping hand. You’re more likely to have contacts with professional contracts at great prices that’ll do a better job and also help your tenants save money. Suggest tenant-friendly solutions such as buying screens and curtains to show renters you care about their well-being if you are not on board with permanent changes.
- Think about Other Tenants
Create policies that consider the needs of your other tenants. To be accommodating, it would be wrong to forget that one renter’s convenience could come at the cost of another’s. For example, if one of your tenants is a content creator and needs to make changes to the wall to fit their aesthetic, that doesn’t affect their neighbors and should be okay. If they’re planning on installing a surround system so they can play loud music, it would most definitely disturb the quiet time of your other tenants and you might need to set disruption limits.
Conclusion
Make an effort to understand where the other party is coming from when discussing rental modifications for work. Tenants have the right to personalize their home to their taste, especially if it makes their home more conducive for work purposes. On the other hand, drastic changes can affect the rental’s property value and include added utility costs that hurt your landlord’s bottom line.
That’s why we recommend that both parties make concessions while balancing work and living space in tenancy agreements. As a property owner, you could enjoy having fewer vacancies by being open to rental modifications within reason and including a strong restoration clause to protect your investment. And if you’re a tenant, keep your landlord happy by carrying them along with your plans to renovate and seeking permission where necessary.
