Potential Income: Appliance Rental?

Question

Through managing many properties, I continually see my tenants turn to renting or lease to own appliances. Not that there is anything wrong with it, but the tenants are basically getting ripped off and end up paying $2,000 for a $400 washer when all is said and done. I figured that I could do the same thing, but offer them a much lower cost and still pick up a nice income. Has anyone ever done this before? If so, how have you structured this?

Dawn Anastasi · Answer

I went with 3 options for the recent duplex:

- Option 1 = base rent, no appliances

- Option 2 = base rent + $25, stove and refrigerator

- Option 3 = base rent + $50, stove, refrigerator, W/D

One unit wanted option 1 and the other unit went with option 3.

Chris Adams · Answer

I think im going to implement the W/D charge. I love the idea since tenants are 50/50 on having their own. Ive got a brand new set in a tenants garage right now because he had his own.

Troy Fisher · Answer

Since I didn't want to provide W/D with the units.  I gave the tenants the option:  Base rent, or Base Rent +$25/mo for a W/D.  If they were standard W/D's I'd be doing great but since only stack-ables fit in my units, it defrays the cost of the W/D's.

Could you work a deal with the R-A-C?  And have them provide your units with rentable items? You collect and pay, and they service?

David Krulac · Answer

@Zac P.

Do I think you can make money renting appliances, TV and furniture, well dam straight you can.  If there wasn't money to be made there would not be any rental companies around.

BUT on the flip side for me, I don't want to be in the appliance business.  I don't want to repair them, I don't want to pay somebody else to repair them, think $60 service call before they walk in the door, and I don't want to replace the appliances when they wear out or break and can't be fixed.

For basic apartments I supply stove and frig.  For basic SFH I supply range only.

When somebody comes and wants to rent a house and they don't own their own appliances I refer them to places like Salvation Army, for needy families they supply a frig for free.  Or the used appliance places, they supply a stove or frig, warranty for a year, deliver the appliance all for $150.  i can hardly clean and repair a stove for $150.

And lastly, there's an old saying  that you should not buy a car from a rental company because the renters abuse the cars, because they don't own them. Some tenants are very hard on appliances, ask me how I know that?

Wayne Brooks · Answer

When they don't pay, what do you do with the items you repo?  Rental centers have plenty of other new customers to rent them to.

Phillip Dwyer · Answer

Have you considered the coin operated machines?

What about furniture and TV's.  Some of those rent-a-center places crush it on Flat screen rentals.  Still, this does seem like it could turn into a job when stuff breaks down.  There would have to be enough income to justify the pains of dealing with it.

Jean Bolger · Answer

I have wondered about this also, as I have a new place that has washer/dryer hookups in each unit's basement. I don't want to just provide a W/D, because of the expense of buying them and then  being responsible for the repairs. Offering the option of having one for a few extra $$ a month might be workable though. The potential issue I see is what to do with the W/D if a new tenant already has one and wants to bring it in. You'd need a place to store the ones not in use...

Matthew Paul · Answer

Give them the option , see how it works .  Great idea

Ugochukwu Opara · Answer

@Zac P. I haven't done this before but this sounds like a great idea. Please keep me posted with what you decide to do and how things turn out. I'm in your corner

Potential Income: Appliance Rental?

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