Washer & Dryer In Rentals
Is it worth it to offer washers and dryers with your rental property? How much do you add per month? Do you look to buy used or new machines? How is depreciation applied to the machines so I can work my spreadsheet?
Thanks, I'm asking all my questions today!
I don't offer them anymore. The ones that have them when I purchase them, I give away to a charity that needs them.
Depends upon the prevailing practice in your local market for similar properties. I put W/D in my condos because I can command the best rent and that minimizes my vacancy on turnover. For a SFR, I wouldn't bother because most tenants for a SFR will already have these appliances.
I believe these applicances fall under the five year depreciation schedule. I don't really know for sure because my tax preparation software uses the correct depreciation schedule without telling me which one I am using.
My target market for my rentals that I'm looking at right now is college students so I believe that offering washer and dryers would be a big plus there. I'm unsure how much to charge. I wouldn't think many would want to pay more than $20-$25 extra a month but I'm wondering if it is worth that considering repairs and initial costs.
Is a new machince better than used?
Thanks!
Earlier this year I offered a property for rent without a washer/dryer (hook-up only). I had a prospective tenant that had his own, so no problem. When the prospective tenant found something else, my next applicant wanted the unit, but needed a washer/dryer. I offered to provide a washer/dryer, but the rent would be increased $25 per month. The applicant accepted, and I have a three year tenant who will have paid off the cost of my new washer/dryer by the time he vacates in three years.
I have gone with both new and used. I find that the more abuse the unit gets the better I am with new appliances. I know, this sounds counterintuitive. Consider that used appliances that get a lot of heavy use (you did say college students), will break done faster and easier than new appliances. When used appliances break down, there is no warranty and the cost of repairs plus the purchase price will usually exceed the cost of a new appliance.
I am starting to buy new appliances when they are on sale, and purchasing a five-year extended warranty agreement. By the time the five years is up, I will have completely depreciated the appliance.
Don't forget that newer appliances can be more energy efficient, and water efficient. I pay for tenants water, so that is a consideration for me.
I don't supply a W/D and have never had a problem filling my REI..
...and they ALL pay their own utilities
I guess youALL are NICE people and I am an SOB?
....as always,
GoodInvesting, Rocky
Hey,
I guess the market will always determine what you need to supply to tenants, but, generally speaking, I think it is a bad idea to supply Washer & Dryers.
My numbers pretty much tie out with DaveT, it takes 3 years to replace your out of pocket costs. That, to me, is a long time. And a lot of things can happen. That tenant who HAD to have a W/D might move out in a year (I don't care what the lease says) and the next guy doesn't want the W/D and the extra $25 month in rent. So now you are down $25 a month and you have do something with the W/D.
Then after 3 years, what do you have? A three 3 old W/D.
And what about the headaches that the W/D (or refrig or microwave or whatever) is going to cause you. When something breaks, the tenants are gong to call you. So at 3:00 in the morning, when the clothes will not dry, you will get a call.
And yes, I know, you are going to have a property managment company take care of the unit, but that is a whole other conversation.
I think the idea of using a Service Plan is a good one (if you are going to supply the W/D), but I would read the fine print. There could very easily be an exclusion if the W/D is rented to someone.
For college students, I think it is insane to provide them anything they could break. I don't care how good your Service Plan is, when they fill the washer with beer and ice and it breaks, YOU are going to have to pay for it.
Pay for utilities? Only if I have to. And so far the only one I have to pay for is garbage and that is because it is the city.
Good luck!!!!
If you do decide to buy w/d for placement in your units, shop around for those with all metal gears and mechanics. 80% of new washers and dryers have gears and shafts made of PLASTIC! Commercial grade w/d should have higher grade parts and a warranty that applies to your situation, if you can find them cheaply enough to make it worthwhile.
Each housing market is truly unique - If w/d makes a big difference in your market, the extended warranty makes sense, as the tenants will have paid for the w/d by the time they move out. At least one midscale complex here in Kansas City owns a fair amount of appliances. They provide free w/d with each 2 year lease, but maintain ownership of the w/d until completion of that lease term. As someone mentioned, if its not a significant 'deal maker', its probably just something else to get you called at 3am.
Theres also nothing to keep you from running hookups to a bedroom closet and advertising w/d hookups - this could be a boon for tenants who own appliances.
In my community, services are available for owners who want to rent washer/dryers with coin slots. They are located in a common area of the building. I've seen some with access to others in the neighborhood, and in rougher neighborhoods, access only to tenants with keys.
Either way, they are considered an additional source of income for the property in the MLS, even after the supplier is paid their monthly fee.
I'm in escrow for a rental property and it is a brand new single family residence. I will leave the washer and dryer to the tenants but what about the refigerator. This is a brand new house and it currently doesn't have one. Should I spend the extra money to purchase one for my tenants? What are your suggestions? TIA.
Leo_Investor,
I would take out the W/D and put in a used FRIG. if you are doing a straight rental....IMHO
....as always,
GoodInvesting, Rocky
Remember that the more you supply the more you have to maintain. If the unit already has a washer/dryer hookup then expect the tenant to supply the actual w/d if no hookup is there then don't put one in. I've found that tenants will rent with or without the w/d or dishwasher and you can still get top rents if the property is clean and well maintained.
[addsig]
Hey Leo: Supply the refer. You can get used ones with one year warranties. Good move keeping the washer and dryer.
I have read that you can have your lease state (all appliances are owned by the landlord and he has the right to remove at any time during tenancy) or something of that nature. This in theory would give you the right to not fix them if they broke.
I have also heard of a landlord removing all appliances when a tennent did not pay rent and was just wanting a free ride. I don't know the laws but a good lawyer should be able to help.
Just my 2 cents
dkbj,
After the landlord pulled these stunts, I suspect the tenant will end up owning the property with the help of a good lawyer.
Just my 2 cents
I dont offer w/d any longer because of one tennant that I had. These people tore the knobs off of the dryer and the washer and dryer continued to need service. The repair person said that the reapirs were needed because the machines were over loaded and not used properly.
Maybe I just have bad luck. But I won't add a W/D any more. And The market is good here so I dont have a problem with vacancy.
Good luck!
Hey,
Does anyone else get terrified at some of the answers to posts????!!!!
You, the landlord, remove items from a property, regardless of how well the contract is written, and not only are you are looking at a law suit, but also criminal charges. It is called trespassing.
washer n dryer hookup is a convenient feature for one who is lookink to rent,
You should also consider.....
the 'wear and tear' on your property from appliances being brought in and removed.
Will
Unless, I have a place to move and store the W/D I'll leave them in the Rental as a bonus but are not included in the lease so I'm not responsible for the upkeep.
As far as taking the W/D when the rent isn't paid, I think that was in some Rental theory I read by John Gotti (don't forget your bats and brass knuckles)