Appliances in rentals

3 Replies

Hi,

I have 2 properties in Oak Park MI that I'm about to rent for May:

House 1: signing lease tomorrow, in the better part of this small city for $1,700/month (rents for a similar house go for $1,400 - $1,600), market would have been $1,500/month in my rookie estimation but I cut a deal with renter to put in new cabinets and granite in the kitchen and a 2 year contract, with that being said, I need to decide on the appliances, would you go with stainless steel refrigerator/range/dishwasher? flattop range (electric)? I already told them that I will also provide washer and dryer.


House 2: not in the best part of the city but in no way a bad area, it's in a service drive but centrally located, no basement, rents around the area for that type of house are from 800-1000, I threw out a feeler for $1,100 (which I would be VERY happy with since I've overspent big time on this house practically fully rehabbing it!) and got positive response even though the house is only 70% rehabbed. It seems for my limited knowledge that landlords are supplying washer and dryer, seems no AC would be ok, I think I would definitely need to provide refrigerator and range, not sure if I should include a washer and dryer, I can include and I do repairs, I can include it and put it in the contract that tenant is responsible for repairs or I can do a maintenance plan with the local electrical/gas company to cover the appliances (about $25/month) and I can cover that or I can gamble and make the renter pay for it.


Ideas/experiences?


Thanks!

Roy,

I'd go with stainless steel appliances. Stainless steel appliances only cost about $100-$200/appliance more than the typical white or black ones. Since you're getting a premium rent, you will recoup this cost in 2 to 3 months. The rest is gravy.

With respect to the washer/dryer, it costs only $60/year each for the extended warranty. Get a 5-year extended warranty. It will cost you less than $10/month. You should recoup the money in no time with your rent premium.

Good strategy.

Originally posted by @Roy Gutierrez :

House 2: not in the best part of the city but in no way a bad area, it's in a service drive but centrally located, no basement, rents around the area for that type of house are from 800-1000, I threw out a feeler for $1,100 (which I would be VERY happy with since I've overspent big time on this house practically fully rehabbing it!) and got positive response even though the house is only 70% rehabbed. It seems for my limited knowledge that landlords are supplying washer and dryer, seems no AC would be ok, I think I would definitely need to provide refrigerator and range, not sure if I should include a washer and dryer, I can include and I do repairs, I can include it and put it in the contract that tenant is responsible for repairs or I can do a maintenance plan with the local electrical/gas company to cover the appliances (about $25/month) and I can cover that or I can gamble and make the renter pay for it.


Ideas/experiences?


Thanks!

I include fridge, stove, washer and dryer but I put in the lease that the washer and dryer are included as a courtesy and will not be repaired or replaced at the landlords expense. I definitely wouldn't pay $25/month service plan. I'm not sure what grade washer/dryer you were looking at but around here I get scratch and dents for $150-$250 each or even cheaper on craigslist.

Thanks for the responses,

Minh, that was I was leaning at for house #1, house #2 I'll go with white appliances.

Chris, the service plan at that price, covers all appliances if I'm not mistaken but if I get newer appliances I wouldn't do the service plan. I also got washer and dryer from craigslist for my house and my initial property, cost me $200 for one pair and $250 for the other, no issues for 2 years (lucky me!), all whirlpool , washers and dryers seems like it's a good gamble on craigslist but a fridge/range I probably wouldn't take the chance.

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