Rental Property - Provide Appliances?

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.

I appreciate all advice in advance!

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Tom A.

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.

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James Ross
Involved In Real Estate · Harsens Island, MI · Member since 2011 · 36 posts · 17 votes
12y
I own them all around that market and I don't install them anymore and it does not slow down me renting the houses out.

Do you want to clean and repair them? No thank you.
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Aaron Yates
Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes
12y
Originally posted by @Jal Singh:
@Carson M. Thanks, that's a great point.

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!!

Do not put new appliances. Go to a used appliance place. There are about 20 up and down 8 mile. Do
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Jeff Rabinowitz
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
12y
@Jal Singh there are a lot of REIA groups in your (our) area. If you attend one there is a good chance you will run into a landlord who has extra appliances that you can buy quite inexpensively. I am one of those who rarely provide appliances. It seems when I leave them the tenant has their own and if I don't provide them the tenant wants them. I have absolutely no desire to deal with a request to repair an appliance. If you catch a guy like me between tenants I am likely to give you the appliance for a song. I usually just throw them away rather than pay someone to clean them.
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Marcia Maynard
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
12y
If you supply the appliances and hook them up, you will benefit in a few ways... proper appliance to fit the space, proper hook up, less potential of property damage when moved in and out, and safety (no frayed cords, overheated motors, water leaking appliances, etc.)

We always supply the range and range hood. It makes a difference if the appliance is electric or natural gas for the type of range hood required.

We provide refrigerators, but allow tenants to provide their own refrigerator if they wish and oversee the moving in and out of the appliance. Unfortunately some refrigerators don't fit the space property. My sister once took a saws-all to a cabinet above the fridge to make a big fridge fit into her place! We don't supply water lines to refrigerators, so none of our refrigerators have ice makers (note we do not live in a hot climate, so it hasn't been an issue).

If we provide a dishwasher, it is built in.

If we provide a microwave, it is built in.

In some places we provide washer/dryer and some just hook-ups. We oversee the move in/move out of these and double check the installation, to prevent damage.

Never found the cost of appliances to be prohibitive to our providing them. We do regular inspections to make sure the tenants are using the appliances appropriately and taking care of them according to manufacturer instructions. We also maintain a relationship with a good appliance repair company when needed.

Also, since we specialize in affordable housing, our tenant pool tends not to have their own appliances. Our local market is such that we need to provide them to be competitive.
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David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
12y
@Marcia Maynard

We have had tenants who besides having their own frig also have their own supper dupper range that they can't live without and have requested that we remove our range. Most of our tenants are middle to upper rent levels, and most of our properties are SFH. Most of the tenants are families and they are moving from another SFH and most have appliances.

In apts. we do supply frig and range and most of those tenants don't have appliances and are moving from another apt to our apt.

In condos and high end rentals we have supplied some or all appliances.

One class of tenants that either don't have appliances or have appliances that don't work here are tenants coming from another country where they don't have 110 volt appliances. In those cases we do supply appliances, but at a higher rent.

One property that we are getting rent ready now already has both the gas and electric outlets for either range. We are not going to supply either range and use that as a selling point that the tenant can bring in EITHER type range which ever one they are most comfortable. So no range now becomes a positive!
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Dustan Marshall
Investor · Hamilton, OH · Member since 2013 · 139 posts · 27 votes
12y
i will keep the appliances for Tennant use if they are in working order when I purchase the property. Or I will provide them if it makes me stand out compared to other properties near me.
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Orlando C.
Multi-family Investor · Bayamon, PR · Member since 2013 · 16 posts · 4 votes
12y
In my market, some landlords provide them and some do not, I tend not provide any appliances. On my opinion tenants tend to have a sense of "home" when they have to provide their own appliances, I do provide them with a truck and driver if they need assistance in moving in. That way tenants will tend to stay for a longer time, and I won't have to deal with broken appliances. Also, on my market the nicer units, usually do not provide appliances, I tend to have my units up notch, so I can attract quality tenants. Just my 2 cents...
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Andrey Y.
Investor · Rockville, MD · Member since 2013 · 24 posts · 0 votes
12y
What language do you use in the lease regarding AC and W/D? Who is responsible for the AC repair and how is it being handled?

Thanks,

Andrey
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Timothy Leong
Homeowner · San Leandro, CA · Member since 2013 · 29 posts · 5 votes
12y
When I was looking for my first rental property my realtor hinted a little joke about buying a house without a Frig/Washer/Dryer saying that if the tenant is willing to put one in, then they will most likely stay longer since they dont want to constantly move the appliance.
What I notice some people in my area was doing was showing the house without the Frig/washer/dryer then giving an option to add in the appliance for a slightly higher rent.
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David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
12y
@Andrey Y.

"The owner is not responsible for repair or replacement of any appliance but will remove any appliance at the request of the tenant."
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Roy N.Pro Member
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
12y
This discussion, whenever it surfaces, serves to highlight how local real estate truly is. Here, the expectation is the landlord supplies a range and refrigerator. Other appliances are optional depending on your target market - we supply en-suite laundry and dishwashers in our downtown units targeted at young professionals.

There are exceptions, mostly when renting SFHs, but we inherited a set of long-term tenants in a triplex who have their own appliances {they bough them out of frustration with the previous owners inability/unwillingness to repair the appliances which were in the unit}. Naturally, there is an expectation of lower rent if the tenant supplies their own appliances.

We budget for appliances to have a 5-8-year lifespan (they are depreciable at 20%) and automatically replace (as opposed to repair) any appliance older than 10yrs. We also use Energy Start tier 3 appliance where possible.
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Gabe G.
Greenwood, IN · Member since 2013 · 346 posts · 93 votes
12y
I provide cheap, used appliances, usually stove, and fridge as a bare minimum. That way if they get stolen or break, I just go and get another 100 dollar fridge or 200 dollar stove, not a big deal.
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Elizabeth Colegrove
Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
12y
We own houses in three different markets in three different states. We supply refrigerator, oven, dishwasher, and microwave (depending on the house).

Our market typically doesn't supply w/d and depending on the house refrigerator or microwave.

I personally have been trying to supply less and less on the appliance side. We have stopped supplying w/d all together. The "additional" value for swaying tenants honestly for me hasn't been their with appliances. They choose my houses for locations, schools and their updates.

Honestly I own higher end homes. My appliances are the things that cost me the most money with the least value.
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Luke M.Pro Member
Rental Property Investor · Brooklyn, NY · Member since 2011 · 76 posts · 17 votes
12y
I agree that this is a regional norm. I have a few rentals in the Bartlett/Cordova suburbs of Memphis, and it's normal that tenants provide their own. Plus, if you have a house vacant in a lesser area, I suppose you'd have a slightly less chance of vandalism and theft when vacant.
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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
12y
I usually only provide them based on how nice my home is and the area. I also make sure tge appliances match the home so I do t out in junky appliances in a really nice home.
Curt Davis - KAIZEN Realty538 Reviews
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