My tenant wants to do his own repairs in exchange for a rent reduction. Is this a good idea?
Having the tenant do repairs and maintenance in exchange for reduced rent can lead to future problems with both the tenancy and satisfaction of work performance. It may be a better business practice to separate work and tenancy issues. You could pay the tenant for repair work as documented in a written work agreement, taking into account the employee vs. independent contractor issues, insurance issues, and the tenant having the skills to complete the work with acceptable results. The tenant’s lease agreement would stay in place as with all other tenant leases. If the tenant failed to perform satisfactory work, the work agreement could be cancelled and the tenant released from duties. The lease agreement in effect would continue the tenant’s obligation for full rent.
It is generally held that the responsibility for major maintenance of essential services, structural items, and common areas should be retained by the landlord. In some jurisdictions, courts have held that responsibility for major repairs and maintenance cannot be delegated to tenants due to concerns of tenants’ means and abilities to perform required repairs and maintenance. Many states and local governments require that certain tasks be performed by licensed contractors. There is greater potential liability to the landlord regarding claims of injuries or damage to people and property for careless or faulty repair work. While in some states a landlord has a legal right to delegate major repairs, a landlord still retains the responsibility for providing habitable housing.