Are windows a good investment?

Question

Simple question which I am sure will not be a simple answer.

I live in a Pre WW2 Duplex. It is three stories and has a lot of windows for natural light. It is beautiful but costly from all the window quotes I got. There are about 60 windows total.

I currently live in the top and rent out the bottom. The estimate for windows is anywhere from $20-40k for the windows which seems terribly expensive for windows. However, some of the windows in my house do not open and others are starting to break as well.

Now the question. Are windows a good investment? How much would I be able to mark up the rent for just replacing windows?

Any insight is appreciated since this my my first property (House Hack) Should I get the new windows or better use the money as a downpayment on another property?

If there is any information I am missing please ask and I would be happy to answer

Jim K. · Answer

@Mitchell Litam

Congratulations, you've noticed that window replacement companies typically charge extortionate prices for their products and services. Ever notice how much they advertise? That's because it's an amazing hustle. The good news is that you can certainly find a handyman who will replace your windows with vinyl DIY windows from Home Depot or Lowes for a much lower cost. Or, you can try your hand at it yourself after watching a few Youtube videos.

Michael Kiley · Answer

Those old Lakewood homes have lots of big windows! It's a very costly project, especially if you're having someone else do the work. I like the idea of learning to do it yourself but I know that's not for everyone. I would imagine that windows won't get you much more in rent, but it may help you rent (or sell) much quicker. That being said, I would only replace the windows if they were bad enough and I couldn't think of any other more valuable improvement to invest my money.

Mark Sewell · Answer

I look at windows like I look at a roof.  Nobody cares if you have them but they sure do care if you don't.

Maybe not totally true - some windows do add something to the look of a room.  And the energy efficiency thing is probably worth something.  But generally speaking, I would imagine it is real hard to charge more for upgrading them.

Eventually you do need to replace the roof, and no doubt the same can be said for windows.  You don't want them leaking.

Victor S. · Answer

On a flip, more yes than no, but on a rental, unless you have gaping holes that let air in, it's a hard no from me. The ROI isn't there.

Clifford Paul · Answer

When I built my first portfolio to 32 doors I never replaced windows. I did however fix any broken or non opening windows. I assume you have the old wooden windows.

Actually they are not hard to fix and now a days everything you need to learn to fix them is on YouTube. You can still find all the parts needed. I can reglaze and repair a non opening window for less than $20 bucks. New windows are really not that much efficient than a properly fix old wooden window.

One thing I noticed in 35 years as an investor no one has ever been concerned about the windows. Hasn't matter if it was a rental or a flip. Most people cover their windows anyway.

Now on some of my current homes I have replaced with new windows but only because I changed the foot print of the houses.

Even new windows are so easy to install paying someone to do it doesn't even make sense. However because you have learned to do it doesn't mean you have to it yourself. I got my contractor to do it on my last full rehab for $10 a window and I paid for the windows. I just told him I'd do the windows myself. He said he install them for $20 a window. I said no thanks I'll do it.. it's easy. He then said $10 a window, done!

Mitchell Litam · Answer

@Michael Kiley Perfect, thats the same way I was thinking. The windows were going to cost an arm and a leg and much of my bank account I dont think I could justify that as much.

I would rather use that as a downpayment on another rental.

Thanks for all the input.

Chris K. · Answer

@Mitchell Litam

It sounds like you are moving on but just one last information to add. Depending on the type and condition of the windows, replacing those can get very painful from a labor perspective. And windows can get expensive if you are looking to replace old, ornate windows. In the old days, they kind of treated these windows as "art" more than a "product."

Depending on your goals, you may be better off going the route that @Jim K. and others suggested. More specifically, you can just buy the off-the-rack windows from places like Home Depot or Lowes and redo the openings so it fits them. It's probably more cost-effective than making the new windows fit the old openings.

In terms of whether windows are a good investment, I agree with most of the other responses that it generally isn't for rentals. You may get better tenant retention if: (1) the tenants are paying utilities; and (2) the existing windows are so old that it barely insulates. But even then, I would probably rather reframe it to off the rack windows then reframe it with custom windows.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information

Mitchell Litam · Answer

Thanks for the aadvice guys. I think the money would better be spent on another property or siding...My wood siding is starting to show its age and in some places falling off :(

Are windows a good investment?

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