Hello BP community! Just put a place into contract in the west Cleveland area! Upon doing due diligence, the owner of the house doesn’t own the appliances, they are rented by the tenants. Is this normal for this area? I’ve ever only lived in California or Colorado, and that is certainly not common. thanks for any feedback!
It sounds like the exact opposite is happening. The tenants are renting the appliances, so if the landlord is charging market rate then he's actually making more money.
this is not typical. Most rentals will include the kitchen appliances. If washer dryer hookups are available, it's probably a 50/50 split as to whether the landlord provides them or the tenant has to bring their own.
I have heard of the washer and dryer situation before! But not the kitchen appliances. I just wanted to make sure I wasn’t missing something, I found it weird. Thank you for your input. The rents are below market value however, so I am sure he is missing out on some revenue.
Very common in the Cleveland area for the tenants to supply their own appliances.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
4y
That sounds like the dumbest thing I’ve ever heard. Does that landlord not realize they are by default collecting rent equivalent to market rent minus the appliance rent and that company’s profit? He/she might as well be renting the appliances themselves as they are obviously paying the rental costs in reduced rent collected. If this was a good idea you’d hear of landlords renting appliances instead of buying them. But you don’t. Because it’s a horrible idea.
I hate the idea of not supplying appliances. And I would never supply a rental property without the appliances. But even that makes more sense than this.
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
It sounds like the exact opposite is happening. The tenants are renting the appliances, so if the landlord is charging market rate then he's actually making more money.
this is not typical. Most rentals will include the kitchen appliances. If washer dryer hookups are available, it's probably a 50/50 split as to whether the landlord provides them or the tenant has to bring their own.
Congrats on the house. Whether appliances come with the house seems to vary by location when buying. As for tenants, I'd rather have my own appliances in the home to avoid having them move them in and out every time there is a turnover. I do have tenants at one place where they wanted to have their own washer and drier (the drier in the unit was in the process of being replaced) and stove. It was a pain to move the stove and washer, but I still charged them full rent.
It sounds like the exact opposite is happening. The tenants are renting the appliances, so if the landlord is charging market rate then he's actually making more money.
this is not typical. Most rentals will include the kitchen appliances. If washer dryer hookups are available, it's probably a 50/50 split as to whether the landlord provides them or the tenant has to bring their own.
I have heard of the washer and dryer situation before! But not the kitchen appliances. I just wanted to make sure I wasn’t missing something, I found it weird. Thank you for your input. The rents are below market value however, so I am sure he is missing out on some revenue.
Congrats on the house. Whether appliances come with the house seems to vary by location when buying. As for tenants, I'd rather have my own appliances in the home to avoid having them move them in and out every time there is a turnover. I do have tenants at one place where they wanted to have their own washer and drier (the drier in the unit was in the process of being replaced) and stove. It was a pain to move the stove and washer, but I still charged them full rent.
Thank you for your input. Yeah I will get appliances, I’m getting at a good deal, but just wanted to hear some second and third opinions! I appreciate it!
It sounds like the exact opposite is happening. The tenants are renting the appliances, so if the landlord is charging market rate then he's actually making more money.
this is not typical. Most rentals will include the kitchen appliances. If washer dryer hookups are available, it's probably a 50/50 split as to whether the landlord provides them or the tenant has to bring their own.
I have heard of the washer and dryer situation before! But not the kitchen appliances. I just wanted to make sure I wasn’t missing something, I found it weird. Thank you for your input. The rents are below market value however, so I am sure he is missing out on some revenue.
Very common in the Cleveland area for the tenants to supply their own appliances.
It sounds like the exact opposite is happening. The tenants are renting the appliances, so if the landlord is charging market rate then he's actually making more money.
this is not typical. Most rentals will include the kitchen appliances. If washer dryer hookups are available, it's probably a 50/50 split as to whether the landlord provides them or the tenant has to bring their own.
I have heard of the washer and dryer situation before! But not the kitchen appliances. I just wanted to make sure I wasn’t missing something, I found it weird. Thank you for your input. The rents are below market value however, so I am sure he is missing out on some revenue.
Very common in the Cleveland area for the tenants to supply their own appliances.
Really? My realtor told me that, and not that I don’t believe him, I was just confused. Do you know why that is? Thanks for your input!
No idea... I believe in the Boston / Massachussets area its common for the rentals to not include washer/dryers as the tenant bring their own. I think its silly to have to move with major appliances. How did that get started? I don't know. Obviously, the trend started somehow and just caught on... Its a pretty silly to me other than landlords trying to save a few bucks or people not wanting to use other people's washer/dryer! :)
It sounds like the exact opposite is happening. The tenants are renting the appliances, so if the landlord is charging market rate then he's actually making more money.
this is not typical. Most rentals will include the kitchen appliances. If washer dryer hookups are available, it's probably a 50/50 split as to whether the landlord provides them or the tenant has to bring their own.
I have heard of the washer and dryer situation before! But not the kitchen appliances. I just wanted to make sure I wasn’t missing something, I found it weird. Thank you for your input. The rents are below market value however, so I am sure he is missing out on some revenue.
Very common in the Cleveland area for the tenants to supply their own appliances.
Really? My realtor told me that, and not that I don’t believe him, I was just confused. Do you know why that is? Thanks for your input!
It's more profitable for the landlord not to have to supply them. Tenants screw them up, don't clean them, and get them so dirty that it'd be cheaper to buy new ones than clean them. If the market accepts landlords not providing them all the time, then it's a no brainer for the landlord not to provide them.
Sorry Nathan. What I meant was assuming tenants are comparing more than one place, this is what they find.
2 identical properties.
One rents for $1500/mo and includes all appliances.
The other rents for $1,000 but they have to pay $500/mo to rent appliances. So they can choose either one.
But if the $1,000 rent your own appliance place tries to charge”market” (($1500) the tennants would choose market rent with appliances instead.
If nobody is including appliance I would include appliances and up my rent to rent plus appliance at other places. This saves the tenant the hassle of getting appliances, my property the wear and tear of appliances coming and going, as well as allowing me to capture the extra profit.
Sorry Nathan. What I meant was assuming tenants are comparing more than one place, this is what they find.
2 identical properties.
One rents for $1500/mo and includes all appliances.
The other rents for $1,000 but they have to pay $500/mo to rent appliances. So they can choose either one.
But if the $1,000 rent your own appliance place tries to charge”market” (($1500) the tennants would choose market rent with appliances instead.
If nobody is including appliance I would include appliances and up my rent to rent plus appliance at other places. This saves the tenant the hassle of getting appliances, my property the wear and tear of appliances coming and going, as well as allowing me to capture the extra profit.
Why would they be paying $500/mo to rent appliances? The stoves tenants living in Cleveland duplexes buy cost like $400.
That was my point. Why would anyone rent appliances? The OP said “Upon doing due diligence, the owner of the house doesn’t own the appliances, they are rented by the tenants. Is this normal for this area? ”. . i was suggesting the landlord include the appliances and charge that much more rent. Save wear and tear on their property, make life easier on the tenant, and make more money. Win win win.
Real Estate Agent · Palm Coast, FL · Member since 2018 · 364 posts · 244 votes
4y
In two of my units I provide a Range, Dishwasher, Refrigerator, and over range microwave. I do not provide a washer and dryer. In my 3rd and oldest unit I provide Washer and Dryer. I provide Refrigerator, Range and Dishwasher. The kitchen cabinets in that property were not designed for over range microwave so I do not include it. During the next tenant turn over, if I do not sell it I will, update the kitchen and add the microwave and remove the washer and dryer.
Next two units, Duplex that is soon to being construction will have Range, Microwave, Dishwasher and Refrigerator. I have also deleted the garbage disposal in the new ones. I will not be providing washer and dryer.
Investor · CO · Member since 2016 · 757 posts · 1k+ votes
4y
I've seen it done a variety of ways. Best is to run market comps and see what is the norm. You can use also use it as a competitive edge by going against the grain.
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
4y
We provide kitchen appliances and hook ups for washer and dryer in our single family rentals in Milwaukee. Same for MF, except coin washers in common area. But frankly the only relevant thing is what does your competition do?
One of the best things (almost nobody does) is to spend a few hours and mystery shop your competition - pretend you are an interested aplicant and call, ask questions, see if they do open house type showings. It is really eye opening!
Property Manager · Cleveland, OH · Member since 2020 · 268 posts · 315 votes
4y
We try to avoid providing appliances if we can, so much so that we will give the tenants a small credit at move in if they bring their own. Refrigerators seem to be less and less reliable every year and repair costs are HIGH, I wouldn't mind providing a stove but like it was mentioned above the tenants can leave them damaged or dirty which is another turn over expense.
We toyed with the idea of renting appliances but didn't get a very positive market response, maybe the market will start to change.
Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
4y
Yes, that was also a surprise for me when I started owning properties in Cleveland. The tenants bring their own appliances so the landlord is not required to provide them.
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
4y
You'd have a hell of a time renting anything out where I am if the tenants had to supply all the appliances. Range, dishwasher, refrigerator are virtually guaranteed to be in the house. Washer/dryer/microwave maybe 50% of the time but growing. We now include washer/dryer/over the range microwaves in every house and get $100+/month more in rent, easily - $200 more in some places. The appliances pay for themselves in less than a year.
I agree that newer appliances are using cheaper parts for sure - more plastics than metal - but basic appliances by name brand companies without frills are still ridiculously reliable. In the last 10 years I have replaced one stove, one dishwasher and two refrigerators across all of our rentals (excluding buying new appliances for rehabs that had none). The refrigerator in one of my rentals is 30 years old, and I know that because I bought it new when I bought my house that I live in now, and it went to the garage when we remodeled the kitchen 15 years ago and then to a rental when I needed a fridge in a pinch 10 years ago. It's still there, working just like it did 30 years ago. A Kenmore, if that tells you anything :) It is the "frills" on appliances that tend to crap out, like icemakers, water in the door, special dishwasher cycles, etc. Skip all of those when buying appliances - you want basic tried and true - and stick to basic colors (white or black, or stainless if you are really higher end).
Even if I had to replace the appliances every year I would include them, because a lot of tenants are dumber than a box of rocks and would destroy the house installing/removing appliances themselves rather than paying a qualified delivery/installation service. Before we started supplying W/Ds you should have seen some of the dumb installations I saw done by tenants - supply hoses jerry rigged with duct tape, drain lines not hooked up, dryer vents crushed flat, dryers miswired, etc. No thanks - a destroyed house from a massive water leak isn't worth it to me, even if insurance covers the damage.
Memphis, TN · Member since 2022 · 230 posts · 99 votes
4y
In our properties in Memphis, we will typically provide a vent-a-hood and a dishwasher but then the tenants are responsible for bringing everything else!
Real Estate Agent · Cleveland, OH · Member since 2022 · 51 posts · 43 votes
4y
Here in Cleveland landlords are not required to provide the appliances, but it is definitely encouraged and will tend to produce a higher level of traffic during the marketing phase, as well as higher rent points if they are provided. Most tenants prefer not to have to purchase or rent them. Usually the variable is the washer&dryer.