How important are dishwashers and laundry?

Question

Good morning. I asked this in the Cleveland forum because I know the answer is somewhat market specific and that's where we're currently looking to invest. But I wanted to ask here as well to see what other investors think.

How important are things like dishwashers and in-unit washer/dryer for a Class C+ neighborhood, 2 bedroom rental unit? We're looking for a second investment property and being rather picky because we're out of state so turnover costs paid to the property manager can really kill a deal. We want a unit where the tenants will stay awhile and not get annoyed at having no dishwasher or no laundry. We also don't have a ton of money to invest so each property has to be a good one.

Do you find these things really don't matter much when it comes to retaining tenants? What do you find are the most important features for keeping tenants? Overall square footage? 2 full baths vs 1? Kitchen storage space? Garage/carport? Fenced yards?

A market like Cleveland (or similar) has 100's of properties so the more features I can add to my list to rule properties in or out will help.

Thanks

James Wise · Answer

Access to laundry = Very important.

Dishwashers = Not some much.

Ujwal Velagapudi · Answer

I don't think a dishwasher matters much, especially in C neighborhoods. Never had them in those buildings, and in my nicer (B) buildings did, but they would be more of a maintenance headache unless brand new (repairs, water bill, leaking, etc.).

In-unit washer/dryer was something I have never seen in a C building...ever. Of course a laundry room or some coin laundry machines in the facility would be nice, but just depending on location and proximity to laundromats, you may be able to get away without have them on site. This would be something that tenant could choose another location for - no laundry option on site.

I would say location is primary as so many factors (including safety) go into that for a tenant, so buy right in terms of close to schools, parks, offices, grocery stores, etc. Then it would be bedroom & bathroom count, parking situation, and a whole bunch of other features you mentioned. Flooring, kitchen set up/space, etc. I've never been asked square footage, but it is posted in ads, but I think the overall size and feel matters.

Also, not sure where I would rank this since it's not a true feature, but are utilities included or not, and how is it billed? $800/mo + utilities is very different than $800/mo all inclusive (for you and the tenant). As an investor, I'd look for the separately metered buildings. This is great since we don't touch the utility costs, and puts the onus on the tenant, but also I've seen in advertising that you can charge the "same" rent as other buildings and people won't always consciously register the extra costs for utilities. At least it gets the foot in the door, and if it's a nice unit, they may end up choosing it over a slightly cheaper unit.

Jim Truman · Answer

Thanks. From what I'm seeing, it's the condos that often times don't have an en-suite hookups for w/d. I know I shouldn't be looking at condo's but that's another discussion. We got lucky with our first condo and it has dishwasher and w/d. I'm wondering if I need to knock this off my requirements list.

James Wise · Answer

Access to laundry meaning you don't necessarily have to provide laundry to them, but access to it.

For example, single family homes and duplexes tenants will typically be required to bring their own washer and dryer so long as the house has the hookups. Hookups are typically in the common basement.

Jim Truman · Answer

Thanks @James Wise. You're obviously very familiar with the Cleveland market. By "access to laundry" I assume you mean either in the building or at least located rather close. In your experience would you pass on a nice unit if it didn't have en-suite laundry, but had laundry in the building? Or does this arrangement work fine for most tenants.

thanks.

Lynnette E. · Answer

I put in washers and dryers for an additional $50 a month.  The properties have hook ups for them to use their own.  I also put in dishwashers when redoing the properties.  They are cheap and people like them.  Hope to have happy tenants who stay longer.

Jim Truman · Answer

Thanks Ujwal,

Most of the SFHs have laundry but many condos don't. Those that don't tend to have laundry on site. So maybe not having en-suite laundry isn't that important?

Since most SFHs have a dishwasher it seems like not having one will steer a prospective tenant towards another home. But maybe I'm wrong about this as well.

How important are dishwashers and laundry?

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