Allow residents to redecorate for rent reduction?

What do you think about the recent New York Times article about allowing a resident to redecorate in exchange for a rent reduction?

Here is a link the NYT article: Renovating a Rental as if It Were Their Own : www.nytimes.com/2009/12/10/garden/10reno.html?_r=1

I LOVE it that the renters came to the Landlord with an idea on how to keep them renting long term, but wondering how this fits into other markets?

I'd think that happens a lot with independently-owned/managed rental units. The duplex we lived in prior to our apartment got a couple upgrades in exchange for reduced rent - we repainted the bathroom and upgraded some of the fixtures for a reduction in that month's rent, for example - and when we left, the washer and dryer we had purchased we left with the unit in exchange for an increase in the amount of our returned security deposit. It's nice to be able to be flexible like that; I doubt we'd be able to do anything remotely similar in our new place, which is professionally managed by a national property management company.

Sara- I think you're exactly right when you talk about the inability of the big guys to do this sort of thing, but if you look at the region where the article originated from, NYC, a grand majority of their units out there are owner operated and not corporate. Sometimes I think in our industry we might get a little too focused on what the big guys are doing and we forget that those independent apartment companies add up to be a pretty big "little guy" as well. I have a guy I'm helping find an apartment right now and his only major thing is that he wants it to be with an independent owner. Is this a minor trend or something they should cash in on? I say cash in and market your flexibility. Gotta push what you have going for you!

Thanks Sara & Heather for weighing in. I've represented large multi-family projects in the past, and its always hard to make this decision. But with vacancy creeping, everyone is looking for ways not only to find new residents, but keep all their current residents. I'm not sure that allowing redecoration is for everyone, but loved seeing this article that portrays renting in a positive light. - There was a give & take here with the landlord and her tenant, and it just reminds us that in this market, we need to listen a little more and see if there's a way to meet our customer's needs while still fulfilling our business objectives.

I'm a "little guy" and I have a small house where I rent out the rooms. Because the house is a bit run down, I have let my renters redecorate their living areas, meaning the bathroom they use, the kitchen they use, and the rooms themselves. It's a 2-way street for both of us - they get a reduction in rent and I get my property fixed up. I like this set up and I hope it picks up with the big guys.