Brooklyn, NY 路 Member since 2016 路 115 posts 路 40 votes
Hi Guys,
Just wanted to ask you guys do you use stainless steel appliances in a c-class neighborhood rentals? My contractor is urging me to go with black appliances which was my original choice but I want to attain a certain price point so I figured the better the rental looks the better the chance.
I've been told not to do stainless steel because of the high possibility of damage to more expensive appliances. I'm not sure I totally agree with the concept but it's not my neighborhood. I almost feel inclined to go with what the natives suggest.
Had anyone done this in a c-class neighborhood and was confronted with horrific situations after the fact, extreme damage, mishandling of the appliances or even theft?
I just wanted some investors and property manners take on the topic.
I'm in Irvington, NJ if that helps.
Thanks BP Family.
@Walmsley Gedeon I've never gone for SS but my units are all apartments. I've stuck with plain ol' boring white. They're the cheapest and there's no risk that it darkens the kitchen. With a smaller spaces you want to preserve that open/airy feeling the best you can. I've never had any horror issues with tenants abusing them or theft. I think the primary issue is that you can't really increase rent because of them. So if it's $1500 for SS and $1200 for 'plain white/black' there's really no way to recapture the $300. I also think that @Alexander Felice is on the right track with 'scratch and dent'. You can end up with some clearance, old stock, "Sears Outlet", floor demo, etc. appliances that will still come with a warranty but at a discount. And for lazy folks like me, they'll still deliver them. As long as you keep them consistent (white vs. black vs. SS) I don't think it will matter in the least if the brand name is the same.
By the way, I'd love to be proven wrong on this one. It would be great to hear any experiences where someone has put in SS appliances and been able to raise the rent by $50/month compared to another identical unit. If I can pay a little more for appliances, recapture the expense through slightly raising rents, and get more deprecation I'm all for it.
I was not able to increase rent because of SS by any means. I remember being at the store and doing the math and seeing there was less than $200 between the black and the SS set. for $200 I will do it everytime just in speculation that I will find a tenant faster and they will like the place better. While there is no way to calculate that, nor would I bother LOL, it's a cheap known cost and a much higher albeit unknown upside.
Guy with Great Hair 路 Austin, TX 路 Member since 2013 路 2k+ posts 路 4k+ votes
9y
I put stainless appliances in my last house. It's a C type SFR
Here is why: For a full set of stainless at lowes, on discount I found a set for like ~$1500. they had a scratch and dent fridge that saved another ~$200. I get 10% military discount as well.
For all 4 pieces I ended up spending $1200 after taxes, delivered. What could I have possibly saved by going with black?
If you can get deals on the stainless it makes sense because tenants love them and when the spread is low it's an easy win. If it's the difference was $800 or more, I may have done differently.
Real Estate Investor 路 Encinitas, CA 路 Member since 2016 路 3k+ posts 路 3k+ votes
9y
@Walmsley Gedeon I've never gone for SS but my units are all apartments. I've stuck with plain ol' boring white. They're the cheapest and there's no risk that it darkens the kitchen. With a smaller spaces you want to preserve that open/airy feeling the best you can. I've never had any horror issues with tenants abusing them or theft. I think the primary issue is that you can't really increase rent because of them. So if it's $1500 for SS and $1200 for 'plain white/black' there's really no way to recapture the $300. I also think that @Alexander Felice is on the right track with 'scratch and dent'. You can end up with some clearance, old stock, "Sears Outlet", floor demo, etc. appliances that will still come with a warranty but at a discount. And for lazy folks like me, they'll still deliver them. As long as you keep them consistent (white vs. black vs. SS) I don't think it will matter in the least if the brand name is the same.
By the way, I'd love to be proven wrong on this one. It would be great to hear any experiences where someone has put in SS appliances and been able to raise the rent by $50/month compared to another identical unit. If I can pay a little more for appliances, recapture the expense through slightly raising rents, and get more deprecation I'm all for it.
Investor 路 Nashville, TN 路 Member since 2013 路 16 posts 路 1 vote
9y
Hi @Walmsley Gedeon- I'd go with the black and not go through the extra expense of stainless, based on what you're saying. Especially with a c-class neighborhood, you want to tenant-proof as much as you can. Save the good stuff for properties you're going to sell outright. Exception would be if, for example, all the other competing rentals have stainless then you may have to match them. Or, if like @Alexander Felice said, you can get a good deal that puts you in the same ballpark price-wise.
Killeen, TX 路 Member since 2017 路 120 posts 路 51 votes
9y
I have lived in a C class neighborhood pretty much my whole life even when I was in the Army in a brand spanking new house on post and non of them have had ss. Even in the higher end officers housing like post commanders didn't even have ss I would just save the money. But that's my Two cents if you really want to stand out buy a few outlets with USB ports built in renters will love that and buyers also jmo
Investor 路 Kansas City, MO 路 Member since 2017 路 791 posts 路 1k+ votes
9y
You may not get any additional rent, but it could mean a tenant chooses your property over another one. One month of less vacancy over the life of the appliances would more than make up for the cost. Another thing to consider is stainless has different cleaning concerns.
@Walmsley Gedeon I've never gone for SS but my units are all apartments. I've stuck with plain ol' boring white. They're the cheapest and there's no risk that it darkens the kitchen. With a smaller spaces you want to preserve that open/airy feeling the best you can. I've never had any horror issues with tenants abusing them or theft. I think the primary issue is that you can't really increase rent because of them. So if it's $1500 for SS and $1200 for 'plain white/black' there's really no way to recapture the $300. I also think that @Alexander Felice is on the right track with 'scratch and dent'. You can end up with some clearance, old stock, "Sears Outlet", floor demo, etc. appliances that will still come with a warranty but at a discount. And for lazy folks like me, they'll still deliver them. As long as you keep them consistent (white vs. black vs. SS) I don't think it will matter in the least if the brand name is the same.
By the way, I'd love to be proven wrong on this one. It would be great to hear any experiences where someone has put in SS appliances and been able to raise the rent by $50/month compared to another identical unit. If I can pay a little more for appliances, recapture the expense through slightly raising rents, and get more deprecation I'm all for it.
I was not able to increase rent because of SS by any means. I remember being at the store and doing the math and seeing there was less than $200 between the black and the SS set. for $200 I will do it everytime just in speculation that I will find a tenant faster and they will like the place better. While there is no way to calculate that, nor would I bother LOL, it's a cheap known cost and a much higher albeit unknown upside.
Brooklyn, NY 路 Member since 2016 路 115 posts 路 40 votes
9y
Alexander Felice Andrew Johnson Bariki Mallya Jason Hill thank you gentlemen. I think I may stick with the black then. And excuse the typos in my post.
am I wrong to think I can ask for a little on the higher end of rent ranges if I have SS appliances and granite countertops? I always thought that was a selling point..
Real Estate Investor 路 Encinitas, CA 路 Member since 2016 路 3k+ posts 路 3k+ votes
9y
@Alexander Felice Yeah, for $200 I can see where you're coming from. When you're dealing with rounding errors there's kind of a "why not?" aspect to it. I'd still probably stick with non-SS in some of my units. I could just imagine tenants visiting each other in my 27-unit, getting charge the same rent, and thinking it's "unfair" that they have to pay as much when their unit has white/black appliances and their neighbor has SS. I'm not a property manager but it just sounds like a boatload of hassle. Either that or I'm a penny pinching jerk. One of the two.
@Walmsley Gedeon Whatever you do, don't get anything like granite or marble! They stain and your tenants will spill oil, wine, juice, etc. and inevitably forget to wipe it up. If you want to go that road get engineered stone (read: quartz) solid-surface counter tops that aren't porous, don't need resealing, etc.
Brooklyn, NY 路 Member since 2016 路 115 posts 路 40 votes
9y
Andrew Johnson thanks. It's funny you should mention the quartz. My contractor suggested the same thing. I'll probably go with that as well. I have a 4unit home (2beds) where I want to get atleast $1300 for the rent . The range is about $1100-$1300 for 2 bed apartments and I felt I could get the $1300 if my units looked a little nicer. But I guess I maybe asking for more of a headache.
Real Estate Investor 路 Palm Beach County, FL 路 Member since 2017 路 3k+ posts 路 2k+ votes
9y
I would suggest you go with SS but only if the cost difference is minimal. I see a lot of upside and advantages to doing so most of which have been mentioned by others in this thread.
Real Estate Investor 路 Encinitas, CA 路 Member since 2016 路 3k+ posts 路 3k+ votes
9y
@Walmsley Gedeon There really isn't a right vs. wrong answer. Half of this has to do with your competitive landscape. If you're the one person who wants $1,200 for rent and doesn't have SS it's more of an issue than if you're the only person that wants a rent premium for SS. It's basically just the classic challenge of "don't over-improve because you'll never get your money back." But over-improve isn't by region or even a city, it's usually down to a neighborhood level. Again, there's no "wrong answer", your only downside is "less right". 馃憤馃徎
Brooklyn, NY 路 Member since 2016 路 115 posts 路 40 votes
9y
Brian G. I appreciate your suggestion but tell me why? I'm looking for as much of basis for comparison as possible.
Andrew Johnson I see what your saying. The appeal is only as good as the guy next door. Again it's a c-class neighborhood so there is probably not much competition in regards to decor. I guess saving the dollars is more practical. This is my first go at this so I'm not sure if I should be aiming higher or am I already on target.
I appreciate you all.
Thank you.
Investor 路 Wyckoff, NJ 路 Member since 2015 路 100 posts 路 35 votes
9y
@Walmsley Gedeon I am in Irvington as well and I think you're rental estimates are accurate. If you want to get to the $1,300 bracket, which is the high end for that town, I would go with stainless.
Another thing I would mention: Though the area is clearly a C-class neighborhood, there are still good people living there that want nice housing. Do your due diligence when screening and you'll be happy with your decision to upgrade.
If you ever want to discuss the market, let me know.
Brooklyn, NY 路 Member since 2016 路 115 posts 路 40 votes
9y
Vincent Priore thank you so much for the extension. I always have questions and it would be great to have a liaison that actually knows the area I'm in. I'm actually a New Yorker and have family in nearby Hillside and Plainfield but am not familiar with Irvington per say. My family member also invest in NJ and I've been using his ear as a sounding board for any detail on the area but I would love to have a more objective suitor for the job. So very much appreciated. Once again thanks.
I'm on a nice residential block with Irvington Park at the end and very close to the Irvington bus station. I figured I want to get the most for my units with that being said.
I was also considering adding in the microwaves to the kitchen appliances.
What's your take?
Investor 路 Wyckoff, NJ 路 Member since 2015 路 100 posts 路 35 votes
9y
@Walmsley Gedeon always happy to help out a fellow investor. Feel free to PM me if you ever want to talk offline. I currently have a project going in East Orange, if you are in the area and want to stop in, just let me know
Microwaves are definitely not a must here, I would let me overall budget dictate that. Its not something we do regularly in these markets