How to Negotiate a Tenant-Repair Contract

Unlike most tenancy terms spelled out in your original contract with a renter, unforeseen repair situations may arise outside the scope of the agreement, necessitating a separate contract between tenant and landlord. This occurs regularly in commercial rental agreements but may also be an issue in residential properties. Follow some guidelines to keep your property in good shape and your tenants happy.

Instructions

Difficulty: Moderate

1. Supply your tenant with a "Repair Request" form as soon as you become aware of the situation, even if you know the repair expense is your responsibility. The form should include the renter’s name and the property address, but the most important part is a space for the renter to describe, in detail, the problem.
2. Schedule a time for yourself and any necessary contractors to view the damage. If the property is commercial and the damage is hindering your tenant’s business, the sooner you address the situation, the better. If the repairs are your responsibility, the tenant may have a claim against you for lost revenue.
3. Give your tenant the tenant-repair contract as soon as possible. Stay within the boundaries of your original tenancy contract to the extent that they apply. For instance, if your tenant suffered fire damage due to overloading the circuits but the fire marshal determines a faulty switch contributed to the problem, both of you bear liability. Spell out who is responsible for which repairs in detail.
4. Negotiate with a tenant who refuses to sign your tenant-repair contract. Consider your options at this point. If the damage resulted from a safety or maintenance issue, you may lose in court and then be liable for legal fees in addition to repairs. Small concessions on your part may cost a little now but save you more money in the long run.
5. Delegate minor repairs to your tenant and deduct all or a portion of the cost from future rent paid. If you’re comfortable with your tenant’s integrity or you live a distance from the property, allowing the tenant to arrange for repairs saves you time and money. However, it is wise to address major repair issues yourself if they affect the structural integrity of your property.
6. Communicate on a regular basis with your tenant during repair negotiations to foster goodwill. You can sometimes avoid lawsuits just by picking up the phone and calling the tenant or dropping by to discuss the status of the repair claim.
7. Put your foot down when you’ve taken responsibility for your share of the repairs and the tenant is asking for more than they are entitled to receive. There are tenants who will take advantage of your goodwill.

Tips & Warnings

• Keep your repair-request form on file for 2 years. The document details the initial repairs and will protect you from additional claims.