Basic Appliances with Turnkey Properties

10 Replies

Dear BP Community - Do you know if it is standard for a turnkey property to come with a refrigerator, garbage disposal, washer, and dryer by the seller? If not, are these typically bought by the Buyer (me) or the tenant?

The turnkey property that I am in the process of buying in Indianapolis doesn't come with any of these appliances, and just wondering whether these are negotiable items.

@Weis Sherdel 

If it doesn't come with appliances, I would not consider that "Turnkey".  And in very rare circumstances would a tenant supply their own appliances.  I would insist that the seller include the appliances in the sale price if they were advertising it as a turnkey property. 

@Weis Sherdel

I can only speak from my own experience and expectations, but appliances may or not be provided by any provider, but at a minimum my standard would be that a refrigerator and stove would be included, or I simply wouldn't consider it turnkey.  Usually dishwashers are included these days as well, but certainly not always.  Garbage disposal doesn't matter to me and can be a source of repair problems - people stick all kinds of things down there intentional and by accident, and that can impact the plumbing.  Washer and dryer would be nice, but usually provided by tenants, not the seller.

Turnkey properties should come with all the standard appliances- at least the refrigerator. Garbage disposal, maybe, but not required. Washer and dryer certainly aren't required only because generally rental properties don't come with them and tenants are supposed to provide their own (may vary depending on location as to what is standard). But at least stove, refrigerator, and an oven should come with it....for sure.

I wouldn't get in the habit of supplying washers, dryers, and dishwashers to tenants. 

Stove and fridge are pretty standard though unless you are buying a foreclosure and sometimes they even include the appliances that were left over.

@Weis Sherdel  - It is very common for Turnkey properties to be sold without appliances in markets or areas where tenants supply their own appliances.  I do not know of any TK provider who provides washer and dryer although the other major appliances like stove/oven and refrigerator are typically market or neighborhood specific.

A major reason this type of arrangement developed was maintenance.  Most TK providers also provide property management.  Appliances are a MAJOR maintenance factor on homes as minor issues become $50-$125 charge-backs to the owner.  Service calls and small fixes add up and eat into an owners revenue.  In markets and neighborhoods where it was common for tenants to have their own stove and refrigerator, those appliances were not put into the property saving an owner the cost of the unit and the cost of maintenance.

In Houston, we have not found an area where properties rent without stove and refrigerator as a minimum so TK properties there come with them.  Dallas is divided about 50/50 and Memphis is more 75% w/o appliances and 25% with.  I would imagine a market like Indianapolis is closer to Memphis so I would not think it is uncommon.

As an owner, you should not pay for these out of pocket, although be sure to ask if the property management company offers incentives for tenants to purchase appliances.  That could often be reflected back to you as a cost.  Just be sure to ask a few more questions, but it is common on lower end price properties for tenants to provide major appliances.

@Chris Clothier  

I stand corrected, I was not aware that appliances are provided by the tenant in some areas, and not by the seller.  This is news to me, I've never seen a property sold without at least a fridge and stove included, except for new builds.   

To circumvent the issue of maintenance on appliances, a clause I use states that: although there are appliances in the unit, they are not included in the rent but if the tenant wishes to use the appliances then all maintenance and repairs are their responsibilities and they will return them in the same condition as received, reasonable wear/tear accepted.  

Back when I managed my own rentals, whenever I got a call about an appliance I always referred them to this clause in the lease.  The tenant wouldn't be happy about it, but they couldn't argue, and took care of it themselves.  Funny thing though, no one ever seems to fix the dishwasher if there is one and you usually don't find out until after they move out. 

@Chad Urbshott  - We use the same type of clause when appliances are present in a property.  And you are right, they always leave the broken appliances behind and never tell you that they broke something...especially not the dishwashers.

I am in Fort Wayne, I wouldn't consider it turnkey without them. I usually get new appliances and take the extended warranty because of above issues. I have my own contracting company but would rather not mess with them, the warranty seems to average out to what my time would be worth anyways. 

Maybe and maybe not. I rent properties in the same area with no appliances. When they break it's not my problem. Rents from $650 to $850

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