Investor · Warren, MI · Member since 2013 · 25 posts · 2 votes
I have closed on my first SFR and I am prepping it now for city inspection and then the hunt for my first tenant begins. I have a question for my fellow investors in the metro Detroit area... of course I welcome advice from all others too ;)
Do you recommend providing appliances, or do you typically have the tenant provide their own? The reason I am throwing this out there is because I have heard opinions from both sides and I'm on the fence. Would not providing appliances and forcing a potential tenant to get their own be a turnoff? Or is it pretty much standard practice to go this route. Again, this is my first property and I don't know what the expectations are. This property is in the Ferndale area, specifically in Royal Oak Township, if that helps.
Investor · West Bloomfield, MI · Member since 2009 · 358 posts · 306 votes
12y
I know some landlords that do, and some that don't. Some that do offer appliances (bought used, or that came with the house) put in the lease that they're provided for the tenant's convenience and the landlord isn't responsible for fixing or replacing them if they break. If they break the tenant can have them fixed at their expense or they can replace them. The landlord will remove the old appliance upon request.
It seems that the more experienced, high-volume single-family house landlords try to avoid being in the appliance repair business. You could, however, make appliance rental another line of business for yourself. Tenants without appliances sometimes go to the local rental place to get their appliances. You could provide used (or new) appliances for a monthly fee. I've known landlords that do that and make out OK financially.
I would see what other landlords in your area are doing. If all other landlords are offering appliances, then I think you should too. If not, then you can ask a little higher for providing appliances if you want to go that route.
Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes
12y
I'm not in your area but I am a renter and have been for a few years now. I can tell you that I would not rent a home that didn't have appliances. Most people who do not own a home, do not own appliances. Then it's just one more expense for them to get moved in, and typically after a move a hefty chunk of change to spend on buying some is not an option. Also I have had issues with my landlord and when I was ready to go, I would not have wanted to haul a bunch of appliances down the stairs and into/out of a moving truck. While this is up to you, I think it would cut your potential tenancy in half, less you plan on scanning the market for renters who've recently lost their homes.
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
12y
I think this is regional. Almost all the single family homes I rent out don't rent with appliances, the tenant supplies them and that's not unexpected.
Investor · West Bloomfield, MI · Member since 2009 · 358 posts · 306 votes
12y
I know some landlords that do, and some that don't. Some that do offer appliances (bought used, or that came with the house) put in the lease that they're provided for the tenant's convenience and the landlord isn't responsible for fixing or replacing them if they break. If they break the tenant can have them fixed at their expense or they can replace them. The landlord will remove the old appliance upon request.
It seems that the more experienced, high-volume single-family house landlords try to avoid being in the appliance repair business. You could, however, make appliance rental another line of business for yourself. Tenants without appliances sometimes go to the local rental place to get their appliances. You could provide used (or new) appliances for a monthly fee. I've known landlords that do that and make out OK financially.
Investor · Los Osos, CA · Member since 2013 · 78 posts · 25 votes
12y
I do what Tom just described. My Lease states that rent does not cover appliances, and that you are welcome to use mine or I will remove them for you if you'd like to bring your own - but that I do not repair them if they break. My rental is in Pontiac.
Investor · ABQ, NM · Member since 2013 · 28 posts · 6 votes
12y
why wouldn't you just put your property up for rent and let the prospects dictate if you new to furnish or not. I've listed my properties with and without appliances. In my rentals without I give the tenant the option if he/she is on the fence about appliances you can always tell them you can rent appliances from me for $20 a month each additional appliance you put in there or they can rent from a rental appliance place for higher prices.
My region, yes, majority have them already in but I get creative with my listings. Tenants some times make decisions on appliances and they don't know if landlord can be flexible or not with this topic.
Investor · Kansas City, MO · Member since 2013 · 465 posts · 170 votes
12y
I'm a renter currently and I've always had the basics provided to me stove and fridge other than that it was up to me to purchase or rent in addition. The place I'm in now supplied the stove microwave and fridge I rent a washer and dryer for $30ish a month
In my part of Memphis we have to provide appliances. In other parts of Memphis the landlord never supplies appliances. In still other parts, the landlord rents the appliances to the tenant.
I hope you are able to get in touch with some other local landlords here. If not, perhaps you could call some "For Rent" signs in your general area and see if appliances are provided.
Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
12y
It's market specific..I don't provide in my area.(SFR) Initiallly I provided stove or fridge, but most tenants bring their own. I ended up moving/storing, so I quickly stopped providing appliances...Some Sect 8 offices require at final inspection, but in this case tenant provided..
Rental Property Investor · State College, PA · Member since 2013 · 287 posts · 99 votes
12y
I use appliances as a negotiating chip w/ the tenants. Depending on my market (I currently operate in two local markets, both very different markets) and in one market, I try to get top dollar for my rentals (avg. market rent: ~$650 for a SFH, mine rents for $725; I do this because at that rate, I get a very specific clientele). If requested, I will include 'extra' appliances (W/D, DW) to my residents.
My other market, where I shoot for avg. market rent +5%, I generally include all appliances anyway.
I dislike appliances. I dislike repairing them and I dislike replacing them. Here's what i do with SFH, most are rented with range only, though some tenants have their own range that they want to keep, so them i supply no appliances.
My theory is that the more heavy things the tenants brings into the house, the longer that they will stay because they don't want to have to move all that heavy stuff again.
Investor · Warren, MI · Member since 2013 · 25 posts · 2 votes
12y
Thanks everyone for the comments. I see it does matter what region you are working with and to follow suit. I'd definitely like to hear thoughts from more metro Detroit investors on this.
@Tom A. that's a great idea to make an opportunity out of this situation...
I did call a couple of property management companies and they said that a fridge and a stove are a must, washer & dryer optional. I also feel the same way as other people in this thread that mentioned that appliances are a pain, and it would be nice to avoid dealing with them if possible. I like the recommendation you guys gave to put in the lease that the landlord will not be responsible for any fixes/repairs/replacements.
I live down the street from the Township. I would wonder, since it is a very impoverished area, if the upfront cost of buying appliances along with any deposit required would be too much for the tenant base to bare. Just a food for thought.
Thanks everyone for the comments. I see it does matter what region you are working with and to follow suit. I'd definitely like to hear thoughts from more metro Detroit investors on this.
@Tom A. that's a great idea to make an opportunity out of this situation...
I did call a couple of property management companies and they said that a fridge and a stove are a must, washer & dryer optional. I also feel the same way as other people in this thread that mentioned that appliances are a pain, and it would be nice to avoid dealing with them if possible. I like the recommendation you guys gave to put in the lease that the landlord will not be responsible for any fixes/repairs/replacements.
I would never even consider renting from you without them in there.
Also that area is the armpit of Oakland County. The people that are going to live there if they don't already have them they just won't have the money to buy them. I would not get them a microwave if not already over the stove.
For the initial cost for getting them a fridge and a stove it will benefit you in the long run.
That Twp is the cheapest area to buy to get into that County. But it has no money and no direction. I don't see values rising there ever.
Been a LL for a long time and do exact as you say, if there are existing appliances, tenants can use, I will not repair or replace, but will remove.
If tenants don't have appliances I can recommend used appliance places a stove is about $150, with delivery, set up, 1 yr warranty and removing old appliance, pretty hard to beat.
Investor · Ferndale, MI · Member since 2013 · 130 posts · 41 votes
12y
You might want to look at it in a different way. Because you are investing in what many would call the Detroit of Oakland county, a main concern should be who you get into the home. If I was investing in ROT, I would try and make my house nicer than anything out there and the most accommodating. That way, the highest quality tenants that are going to look in that area will be jumping all over your home.
After reading everyone's comments and also speaking with Property Management companies, I'm going to provide a fridge and a stove. Not sure if I'll go to ABC Warehouse or buy used, but seems like that is the route to go. I'm still on the fence about washer/dryer, but thank you all for providing input!!