Provide washer/dryer in unit or just leave the hookups?

Question

Currently upgrading a four-plex in I would say a "B" neighborhood.  Small 1/1.

I'm trying to decide If I should provide the tenants with a washer dryer or just leave the hookups available for them to purchase as an option.

I would save about $1100 per unit if I didn't provide them, and since it's on one water meter, I would be saving on the water bill.

However I do want to make the units attractive so I can get quality tenants.

Any experience on this?

Thanks

Nicholas Cook · Answer

@Joe G. In our market we highly recommend providing a washer and dryer. Residents expect it and it does reduce time on market. In most cases you can generate $100 more a month for this amenity which makes it fairly easy to pay for the machine in a short period of time.

Corby Goade · Answer

I've been through this many times. I don't provide a washer and dryer to tenants anymore. They are pretty hard on the machines and it becomes a maintenance nightmare. I've never had a tenant complain when I didn't provide them, but I have had plenty of complaints when I have. At least in my area, it doesn't increase the rents you can ask for.

Ben Wilkins · Answer

@Joe G. - this is a preference type of question, so I'm sure you'll get a few answers that diverge a bit.

I agree with @Ron Flatt, but my main reason for not installing washer / dryers is that it is one more CapEx item that can / will break. The fewer CapEx items you have in your apartment, the less upgrades and repairs you have to worry about in the future.

That being said, some areas provide washer and dryer sets as the "norm", and use it to increase rent due to convenience.

There are certainly nice things about having a washer / dryer provided by a landlord, and it can bring convenience and rent up a bit (maybe $10 - $20 a month). There are also issues with it as well.

My suggestion: provide hookups, and have washers and dryers for lease. That gives the option for a tenant to provide their own, in which case they are liable for their own machines, or they can give you money for a washer and dryer. With a leased machine, you can add in the liability clauses and make sure that they are responsible for the machine. The lease income can cover the CapEx (and hopefully provide income), and you can use a security deposit type of write-up to make sure that the machines are returned in decent condition.

Short answer: Don't just provide a washer and dryer. If you want to handle your own machines, use a lease option and charge.

Ron Flatt · Answer

I have found any time that you have washer/dryer connections, you have to inspect more frequently.  Tenants do not report leaks and/or the equipment itself is leaking, causing problems.

I would make sure tenants know they are liable for water damage.

I admit mine are C units but I found the same in my B unit I just purchased.

Peter Mckernan · Answer

Hey @Joe G. I agree with everyone on this thread, I was managing a third party property and there was a sensor on the washer that malfunctioned. The water never stopped filling and it caused over $5K of damage, and it was on the owner since it was their washer and dryer. (oh and his insurance deductible was $5K)

I would leave the hook ups and not provide the washer/dryer because there is also added maintenance and up keep with washer and dryers along with that possibility of them breaking and needing a whole new unit.

Ray Harrell · Answer

Most tenants for whom a washer and dryer is important will also likely want to choose their own features. Leave the hookups and let them choose their own. That way if it breaks it's not on you.

Joe Gee · Answer

All real great stuff!  I was on the fence about leaving the hookups, now I'm convinced.  It will be too costly in the long run.

Thanks for the advice!

Provide washer/dryer in unit or just leave the hookups?

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