Do you always have to fix appliances?
I recently read a lease with that included this clause: "If any appliance cease to function, we may or may not repair or replace the appliance at our discretion."
Do you have this clause on your lease AND is it allowable in your state?
#3 Managing Your Property Contributor
I don't, but if it is there and your tenant signed the lease, then follow it. Where I am it is normal to provide appliances. Having tenants move large appliances in and out can create damage. I know it saves you from repairing and replacing them, but I'd worry about them properly attaching things like a washing machine.
#3 Innovative Strategies Contributor
- Investor
- Greenville, SC
I would not want or expect residents to fix appliances.
In CA most tenants have their own appliances. Most appliances made these years are crap. They die after 2-3 years. Some landlord buys home warranty or extended warranty if provided.
Dude get your people appliances! LOL
Quote from @Julian Colvard:"...at our discretion"??? What does that even mean? If the tenant rented with a functional refrigerator and it breaks, you may decide not to replace it because you don't like the tenant? You're short on cash because you bought new wheels?
I recently read a lease with that included this clause: "If any appliance cease to function, we may or may not repair or replace the appliance at our discretion."
Do you have this clause on your lease AND is it allowable in your state?
That's a ridiculous clause and I doubt it would stand up in any court. I'm also surprised any tenant was dumb enough to agree to it. When someone rents, you should maintain the home in the condition it was upon occupancy. If the dishwasher works, you should keep it working. If the windows open/close, you should keep them opening/closing. The only exception is if you are very specific about not maintaining something (e.g. "The washer/dryer was left by the last renter. You may use it but the Landlord does not warrant it and will not repair/replace it.")
I've never seen a lease with that language you outlined, but for us it depends on what kind of appliance. For refrigerators, stoves, dishwashers that are owned by us we take care of repair/replacement. That is the norm for our market.
If a washer/dryer remains from a previous tenant we outline in the lease they are more than welcome to use it, but we will not repair/replace in the event an issue happens.
Your clause is a bit goofy to be honest. The whole "discretion" part is really odd. For kitchen appliances like a fridge or stove for us it depends on who provides them. If we do we service them. If tenant does they do. Pretty simple. If we buy a home that has a washer/dryer in it we always say that the tenant is free to use but they will not be serviced or replaced if broke.
I would try to be clear VS this discretion path you are taking. That is just ripe for issues. Also be sure you know state law about what you are legally responsible for.
If you don't want responsibility for appliances, don't provide them. That is what we do for washer and dryer. If they are in the unit, we remove them and sell them. Then there is no question or argument. You own them, you fix them.
I realize people put all sorts of crazy stuff in their leases, but be aware that laws govern what you can and cannot put in your lease. You should only use a lease that has been approved by an attorney licensed in your state of operation. People mistakenly think just because they put it in their lease, that it is legal or enforceable. It could be neither and in court, a landlord can be penalized for unconscionable abusive contracts.
Aside from the legal ramifications, you will end up with angry tenants when you tell them they are responsible for repairs they didn't cause. These are the types of landlords that tenants will avoid or move out to get away from.
I fix all appliances. Though if it's a SFH I typically don't include a washer and dryer.
I fix or replace all appliances except washer/dryer. I have several sets of older washer/dryers. At movein, if the tenant requests a w/d and I have a spare, i will furnish one free with a lease addendum that states they are provided as a courtesy and will not be repaired or replaced if they fail. If I happen to then find a very good condition cheap w/d on craigslist I might replace it but I don't tell tenants this up front. I can (pre pandemic) always find an almost new pair for < $300 total, just not always in a particular week.
All my rentals come with a DW and stove, 1 has a OTR microwave. I repair/replace as needed. If a tenant leaves a fridge or W/D, new tenant is welcome to use but I won’t fix or replace.
I have only one stipulation on the washer/dryer. They're stacked and just physically difficult to get into and out of the laundry room due to the layout. So I have in the lease that they are welcome to use the ones provided, but if they break the tenant can either repair them or request to have them removed by me and they can buy their own. Single house.
#3 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
No way a tenant would say. Hey your clothes washer/ dishwasher / fridge, whatever you don’t have to fix is spraying water all over your floor. Your stove has a nasty gas smell, I’m going to leave town for a week and see what happens.
What are you hoping to save with this clause? Do you think when this tenant bails your next tenant is going to say hey it’s cool the fridge doesn’t work I’ll sign your lease anyway. So you don’t have to pay for the appliance for an extra couple months and all it costs you is more turnover?
With a dozen properties I MIGHT replace one or two a year? Oh no, $1000-$2,000/year? $150/mo divided by 12 is $12/mo? Do you think you can charge $12/mo more for rent with new appliances you repair? I’d never signs. Lease like this but if I was forced to do the math I’d want at least $75/mo off for no appliance repair. And I’m taking my replacement appliance with me when I leave. Then you can buy a new one for the next tenant.
A nice fridge can run you $900? (This is what I buy, stainless with ice/water in the door) everything else is $400?
I would this must be why I never have any vacancies, but I don’t think anyone would really try a lease stipulation like that in my markets. But they probably deserve what they get if they do.
Ps. NO. Don’t buy a home warranty ever.