Reminders for Renters Who Remodel

Does it ever make sense for tenants to spend money fixing up a rental?

Sometimes, financial advisors say, especially in rent-controlled areas where the tenants expect to stay a long time. But there are several pitfalls--and a very strong proviso: Never think of those improvements as investments, says certified financial planner Peg Downey, because you don’t own the property.

“It’s a purchase, not an investment, and if you frame the question that way, you can probably answer for yourself whether it’s worth doing,” Downey says.

What should you consider?

* Focus on portable improvements. Why install wall-to-wall carpeting when you can buy a roll-up rug that’s just as luxurious? So says Leta Herman, author of the bimonthly Your Apartment column, which appears in The Times’ Real Estate section.

* Talk to your landlord first. Most leases forbid alterations without prior written approval from the landlord, says certified property manager Robert Griswold, author of the Rental Roundtable column. “I’ve seen tenants who’ve built sun decks and then wanted to be reimbursed, and the landlords said, ‘Sorry. I don’t have to.’ ”

* Negotiate, but don’t get your hopes up. Tell your landlord what you’d like to do and see if he or she is willing to share some of the cost. Keep in mind that landlords don’t have to pay for any changes unless they involve health or safety issues. And while some might agree to buy the paint if you provide the labor, others may insist that you hire their contractors to do the work to ensure the job is properly done, Griswold says.

* Say goodbye to any attachments. Anything that’s affixed to a rented premises legally becomes the property of the landlord, says Berkeley attorney Janet Portman, author of “Every Tenant’s Legal Guide” (Nolo Press, 1997) and “Every Landlord’s Legal Guide” (Nolo Press, 1998). “Technically that means a picture hook in a wall, a rosebush in the backyard, a satellite dish bolted to the balcony, even a bookcase anchored to the wall.” Although landlords might be reasonable about something you have anchored to the wall in case of an earthquake, it’s still a good idea to have an agreement that lets you take the item when you move. And you are responsible for fixing the wall.

* Get it in writing. Once you get an agreement with a landlord, write it down. If your landlord seems shy about formal agreements, send a “letter of understanding” outlining the agreement, and mail it with a return receipt requested, Portman says. “If you don’t hear back, you can assume you got it right, and if three years later, the landlord says, ‘I never agreed to let you put that carpet down,’ you can pull out the letter with the receipt. In court, that’s evidence that the landlord agreed, because he failed to write back.”

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Note that the 1996 federal Telecommunications Act requires landlords to permit tenants to install communications devices such as wireless antennas and small satellite dishes, Portman says, although the location is negotiable. And the California Fair Employment and Housing Act requires landlords to allow alterations that accommodate a disability, such as a wheelchair ramp. Also, anticipating competition in cable service, the state Legislature is considering a bill that requires landlords to permit cable companies chosen by tenants to install their lines in rented properties.