Remodelling And Renting
I want to do some work on a property while I am renting it out. Most of the work will be done inone room of the house and the attic- adding an attic addition- and new roof and siding on the outside. The house is a 3 br,1 b worth about 90K in a good location. I want to rent it out for $700 a month. Should I discount rent during the remodel? I will want to raise the rent after the remodel at the end of the lease. How should I handle the increase in rent after the remodelling? How should I let the potential tenents know about the remodelling? This is my first rental property. I need some veteren advice. 8-)
First of all, I usually get the remodel done ASAP, and then rent it. It is very difficult to find a tenant that wants to be bothered with the inconvenicne of a construction project (noise, dust, strengers in house, etc) If you are lucky enough to find someone to rent, then I would certainly give then a discount for the trouble. I would make the lease a month to month witht he understanding that once rehab is completed the rent will go up (and give appropriate notice when the time comes).
I would not rent to someone and then show up with "Surprise, we're going to remodel." I think disclosure is the decent thing to do.
Good Luck!