At what point is an ice maker expected?

Question

This is silly,  but my husband and I cannot agree.  We rent condos in Naperville,  an affluent suburb of Chicago that has been voted one of the best places to live in America a couple of times.  Very good schools.  I don't know if these are A properties because I am new to that framework and as I read the descriptions I'm on the fence.

Anyway,  we always put in SS appliances if the appliances are old,  stone countertop,  paint or replace cabinets,  tile bathrooms if the insert is gross,  etc.  H is convinced that this is the path to higher rents and appreciation.

Where we cannot agree is on the ice maker.  Buying a fridge with ice maker and perhaps water through the door is at least $1000 more than a basic freezer-on-top model.  Running a water line is about $300.  THEN you have something that is notorious for failing and risk a flood on your property.  I just can't see it.  Husband insists that a "nice"  property has a "nice" fridge that is side by side or French doors,  and ice maker at the very least.  So far we have compromised...if there's a water line there I buy the ice maker,  otherwise not.  But he's getting more and more insistent.

What's your take on it?  Not so much from a landlord POV but as a renter...is there a point at which an old-style fridge would turn you off,  even if it's new and SS?  Our 2 br 1.5 baths rents from $1350-$1450.

JD Martin · Answer

Ha! We were homeless for 4 months as a kid and once lived in a place for 6 months without electricity, so any refrigerator is a luxury when you've seen the alternatives. It wouldn't be like making a car without a steering wheel; it would be like making a car without heated seats, if the seats could short out and catch on fire. You have an alternate way of getting heat (turn on the heater), it's just a little faster and more convenient with the heated seats. If you knew that heated seats could catch on fire, without you knowing it until the car was burning, you'd probably be less keen on heated seats ;)

Federico Gutierrez · Answer

Ice maker means you need to run water to the fridge, meaning you probably going to need a plumber for this small task. Chances of getting a leak just go higher. I wouldn't do it, tenant won't pay more for this.

Thomas S. · Answer

High end rentals generally do not have positive cash flow and are really only a faith investment based on appreciation. For that reason your decision should only be based on impacting appreciation. Ice maker will not affect appreciation. Risk of water leaks is reason enough not to include.

Jennifer T. · Answer

I was renting a house back when Hurricane Katrina hit NOLA.  Since I knew my landlady had to replace the fridge anyway, I asked if she wouldn't mind getting one with an ice maker.  It wasn't a deal breaker.  After all, I'd already rented the place that had a fridge without one.  But it was definitely a preference and a welcome perk that made my life easier.  She was kind enough to comply with my request.  I'm assuming it wasn't that much more or she probably wouldn't have done it.  It was a pretty basic fridge, 18 or 20 cu. ft.  It wasn't on the door, it was inside the freezer.

If I were a renter again, I wouldn't call it a "need", but it's something I would look for.  If two places were "neck and neck", that could be a deciding factor for me.

With that said, my own rentals are primarily in middle class to lower middle class neighborhoods.  I often buy my fridges used, but don't necessarily look for ones with ice makers.  If they happen to have one, great, I'll install a water line if there isn't one already in the unit.  Though my husband does it, so there isn't much additional cost to do that.  I also have something in my leases about not repairing ice makers (when applicable).  I've also never had a tenant ask about one.

Michael Plante · Answer

What do your competing apts have?

Ray Harrell · Answer

Also @JD Martin, once you have those features, they almost become necessities. I personally don't understand why someone would even design a fridge without ice/water features!!!! That's like making a car without a steering wheel!

Ron H. · Answer

Fridges with ice makers are not $1000 extra.  Just purchased yesterday  a new ss freezer on bottom with icemaker whirlpool fridge for $800.   Just have to look around.  I put in lease that icemaker will not be fixed if it breaks

Does not have water dispenser.

Morgan Van Ness · Answer

Not sure if this adds any value or not, but as a long time renter, I check the freezer for an ice maker and the sink for a disposal in every unit that I rent.

I can't say it's a deal breaker for me, but it's something I look for.  If you pair a lack of an ice maker with an apartment sized fridge though, that's going to kill the kitchen.

Nancy P. · Answer

Thanks for all your replies.  @Thomas S.,  not everyone shares the same investing goals or risk tolerance.   Clearly it seems a few people would find an ice maker a necessity,  but most would not.  Between that and the flooding risk,  particularly since it's a second floor condo and a leak=flooding someone else,  my husband agreed to the "basic"  new fridge.

Thomas S. · Answer

I have never heard of a high end property producing cash flow. $417 per door is rediculusly high.

Rent to value is always too low. How much you paid to purchase is irrelevant. What is most important is the market value. Each 100K in equity is eating $833 of your rental income based on opportunity value.

If they truly are high end properties you are negative based on value.

At what point is an ice maker expected?

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