Hey, ATS Landlords! What would you say to this?

We rent the most beautiful little house. Lived here for 5 years. Love our landlords, and they've told us we're the best renters ever.

We want to propose to the landlords that we build on a second bedroom at our own expense. Ats property investor types, what would you say to this?

Why do we want to do this, you might ask?

1. They can't sell it. County laws put a minimum of 10 acres for any residence, and both the Landlord's house and ours is on their ten acre farm.
2. We hate debt. Student loans burned us, big time, and we'll never do a mortgage. It will be another ten years before we can buy with cash. We figure the cost of an added bedroom is about 20% of the total sum of mortgage interest we'd be charged if we bought now.

To be honest it sounds like you are not in the best financial situation to sink that kind of money into an addition?

a reply to: Look2theSacredHeart

You'll never get your investment back, so what's in it for you?

a reply to: Look2theSacredHeart

Depending on where you live. You may be required to provide a blueprint of the addition and get multiple permits and inspections along the way.

Des

a reply to: charolais au contraire.

a reply to: Look2theSacredHeart

We tend to look VERY favorably on any property improvements, and will actually trade off rent for some work (and will pay for any other work). The rule is: once you do something, it has to stay (Texas state law).

I'd say that as long as you have all your permits, and a contractor that is well referred (and licensed), then

a reply to: Look2theSacredHeart

Make an offer to purchase the house. If you have been good renters for 5 years they should be very inclined to the offer. If they won't sell talk to them about the add-on and your ideas, cost estimates, and estimated value increase from the add-on. You may like your landlords, and they may like you, but remember in the end it is a strictly business relationship owner to lessee, and should be looked at as such with any kind of investment.

I would talk to your landlord about it and, if they're agreeable, consider having a contract drawn up outlining the specifics of the agreement.

Not because you don't trust your landlord, but just to create a record for reference later, if needed.

Normally the deal is this: landlord pays for material; you do the work. So if you come to an agreement that you want to paint a room, landlord buys the paint; you do the painting. That kind of thing is normal. What you are suggesting is that you pay for a "capital improvement" in the property==an additional room.

And that's just nuts.

You don't want to go there.

a reply to: Atsbhct

You never get mortgage interest back, either. We'd prefer our cash go to the house we love and landlords we love.

a reply to: schuyler

we have, on an occasion, carried a note for a renter who wanted to buy a property he had lived in for 10 years, and had made some capital improvements. We sold the house over a 10 year period (he's half way done), interest free, at 70% of market value. If he defaulted (ie., left town and didn't pay for a few months) then he loses his investment (essentially, rent to own).

But we trust each other, and I don't do people wrong. So it works well for him and his family. He's also a licensed electrician, so does quite a bit of sidework for us in exchange for a monthly payment.

As a landlord, if a tenant wanted to "improve" the place, I wanted to know what their idea of "improve" was. Adding an extra room is a great one and as long as you know what you're doing or hire it out to a reputable contractor, I'd say "Go for it" if it was my property. Good renters are HARD to find.
And by "good" I mean people who treat the place like they appreciate it, not like a frat house.

a reply to: Look2theSacredHeart
You sound lie a landlord's dream.

Why have I never had tenants like you?

I usually end having to put over half of the money collected back into repairs after a tenant leaves, and I have had two that just up and left, after being in arrears in the rent.

I would have sold the property long ago, if it were not for the fact that it is in a saturated area. Not even a postage stamp sized lot is available that is not owned and being utilized in some capacity.

If I sold the place I would never be able to afford to buy in the area again in my lifetime. Will sell when I am ready to cash in and sit in my rocker on the porch.

a reply to: Destinyone
You're exactly right. Our county loooooves permits.

a reply to: Look2theSacredHeart

I had a similar situation. The old landlord died, property sold and courts upheld agreement with only the deceased l.lord.

And unexpectedly and even with a previous agreement....the new one said get the f-out....and leave all our additional add sons.

They moved their family in...and we were out.

Just understand you're thinking of now its all rosey....but you will never own it.

a reply to: bigfatfurrytexan thanks for the input, and I'm glad it's positive! They've hired my carpenter husband for work in their house and on ours, but if they prefer, they're also friends with this German immigrant named Rupert who does beautiful finish work.

a reply to: Vector99 Rock solid. We'd definitely get a lawyer to do a contract so we're all on the same page.

a reply to: Vector99 We did talk to them about buying, and that's when they told us it couldn't be subdivided because of county code. But they did tell us they're thinking of selling the whole farm...in like 25 years.

a reply to: N3k9Ni yes! Good fences, good contracts, good neighbors.

a reply to: schuyler why do you think it's nuts? Living there, even with the addition, would average between 2 and 5k a year in savings, depending on if we bought, or if we rented a crappy overpriced apartment in town.