Stainless Steel or White Appliances for Rentals?

General Landlording & Rental Properties
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Stainless Steel or White Appliances for Rentals?

Account Closed
Los Angeles, CA · Member since 2008 · 557 posts · 70 votes

Hi all -

I know variations of this question have been asked, but I mostly see it in relation to flips. Does an extra $100.00 per month in rent sound realistic for using stainless steel over white kitchen appliances, all other things equal?

I am in the middle of a kitchen remodel on soon to be rental condo - 2/2 1025 sqf - in Encino CA. The area is conducive to a somewhat quality tenant, with rents ranging from 1400.00 to 1650.00 in this complex for similar units. The handy man doing the rehab - he manages 28 units in Glendale - says I should be able to get an extra $100.00 per month in rent if I have a stainless steel stove, hood, and dishwasher installed instead of white.

There might be some deal breakers for super high quality tenants already, like this being an apt conversion, with coin laundry machines located in the common area.

The kitchen rehab also includes granite counter tops, tile flooring, and sanding/putting a semi-gloss refinish on the cabinets with new hardware and hinges. With white appliances my total outlay for the entire kitchen remodel is around $2400.00, with stainless steel $3200.00.

In addition, a better question is what approach would you take to analyze this situation?

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Joe Bertolino
Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
14y

I use the Frigidaire Sliver Mist series. You get the 4 piece package (range, Microwave/hood, dishwasher,fridge with water and ice in the door) for $1695 from Best Buy. It looks like SS but is a lot easier to maintain.

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  • Leah Henderson
    Involved In Real Estate · Columbia, SC · Member since 2010 · 16 posts · 4 votes
    14y

    Black appliances are utilized here quite a bit in new construction. I'd not invest in SS unless I was confident of the $100.00 increased rent payment. I'm not sure the handyman's anecdotal evidence is sufficient to make an $800 investment.

    @colahomes
    Thanks for sharing.

    --Leah

    3Reply
  • Albert Hasson
    Investor · Paradise Valley, AZ · Member since 2012 · 366 posts · 214 votes
    14y

    Matty, I put stainless in all my kitchens and do believe it makes a difference. If you are already putting in granite counters then stainless makes sense. The usefull life of the appliances in at least ten years, even if you got an extra $25/mo by using stainless you would break even in less than three years. Plus stainless has that "wow factor" that may make the unit easier to rent thus decreasing down time between tenants. Also, if you want to sell in a few years buyers really like stainless.

    2Reply
  • Ibrahim Hughes
    Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
    14y

    I would look at what the rest of the market is doing. Have a realtor send you all listings of rented apartments in the last 4 months. Note where they are and what kind of tenant the location typically attracts.

    I did this recently and realized that SS appliances (and things like granite) are placed in rentals that attract high quality tenants like professionals who commute to NYC for work and grad students. Thus I see the SS appliances in the Ironbound and Society Hill sections of Newark. These areas are close to the train station into NYC as well as local colleges and universities. Thus while a 2 bedroom apartment in the rest of the city and without the SS can fetch as much as $1000/month, it can get $1500 if it's in the Ironbound (the part that's close to train) or society hill which is close to colleges and universities and not too far from the train.

    So bottom line is to study your market. If your rentals, due to location, aren't likely to attract professionals or grad students I'd say forego the SS. You also want a tenant whose going to appreciate and take care of SS. Your average tenant may not do that.

    4Reply
  • Kyle Meyers
    Residential Landlord · Indianapolis, IN · Member since 2010 · 592 posts · 138 votes
    14y

    I put SS instead of white appliances in one of my rentals, it only cost $300 more and I think it increased the appeal to potential tenants. This was for a lower income rental, for a $1000+/month rental, I would definitely do stainless.

    2Reply
  • Monica Breckenridge
    Rental Property Investor · Colorado Springs, CO · Member since 2010 · 476 posts · 305 votes
    14y

    Interesting, I never thought putting in SS would increase the rent. I always do white used appliances I find from Craigslist and I get my houses rented ASAP. But never tried increasing the rent with stainless.

    0Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
    14y

    Thank you all for the feedback. It has greatly helped in my decision to go with SS.

    0Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
    14y

    Ibrahim S getting rental listing of the last 4 months is a great idea. I actually just got my broker's license in Jan. - clearly I am not using it yet :)

    I finally joined an MLS on Friday, and a quick map search in it gave me more than enough data to realize I'd certainly have a competitive advantage in my complex going with stainless steel.

    1Reply
  • Paul M.
    Medford, MA · Member since 2012 · 163 posts · 36 votes
    14y

    I do it often, depends on location.

    I don't really like how it can scratch easily, and it's harder for it to look clean. Fingerprints, water streaks, etc.

    1Reply
  • Mark H.
    SFR Investor · Phoenix, AZ · Member since 2009 · 484 posts · 181 votes
    14y

    I'm doing black in my rentals, used fridges & stoves from Craigslist, new mics & dishwashers ( not much of a discount on used ones).

    I decided against stainless after seeing so many used stainless fridges & stoves that had been attacked by brillo-pads and had terrible scratches all over. I'm not sure how I could explain to a judge that a tenant had "ruined" a stainless fridge by destroying the finish with a scuff-pad.

    Black is nearly as highly regarded as stainless in my market ( new homes often have black here), and less expensive - my last double-door ice&water in the door fridge was $175, and I can buy good used black stoves for $100 on Craigslist.

    Used stainless stuff goes for almost new pricing on craigslist, and stainless packages with a fridge push $2500 new... If a tenant took a scruff-pad to $2500 in appliances & ruined the finish, then a lame-o judge wouldn't allow me to replace them, murder might be an option for me.

    So, black it is...

    4Reply
  • Lynn McGeein
    Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    14y

    We've always done black appliances in our rentals as well. I care for my own stainless appliances, but would never count on a tenant actually cleaning them properly.

    0Reply
  • Joe Bertolino
    Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
    14y

    I use the Frigidaire Sliver Mist series. You get the 4 piece package (range, Microwave/hood, dishwasher,fridge with water and ice in the door) for $1695 from Best Buy. It looks like SS but is a lot easier to maintain.

    7Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    14y

    Matty,

    Even if you only were able to keep a better quality tenant and/or lease your unit faster than all others, it would be beneficial for you to go SS in yoru area. Now, adding to the fact that you may get $100 a month extra (or even $50), it would be well worth it hands down!
    At $50 per month extra in gross rent, your cost to go SS is re-couped in 16 months and that does not take into consideration the fact that you will likely rent your unit faster, also saving you money. SS matches granite and other higher end finishes better and is the most popular appliance finish in our area these days.

    Will

    Podcast Guest on Show #130
    1Reply
  • Ken Latchers
    Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
    14y

    I think it also goes to a good lease. If condition of apt is properly documented, and tenants scuff up stainless steel, then I would think you might have recourse for the damage. Pix before/after never hurt as part of checkin/out.

    I am in low rent country, so it would be extremely hard to justify anything upscale. I go for the middle of the market.

    0Reply
  • Matt Jankowski
    Involved In Real Estate · Houston, TX · Member since 2008 · 39 posts · 7 votes
    14y

    If you have any faith that the handyman knows what he's talking about, go for the SS. The added rent only needs to be a fraction of $100 for this to be a good move.

    When I find myself facing a conundrum like yours, I often solve the problem by trying to squeeze a deal out of the upgrade. If you can figure out how to do SS appliances for only $400 more, then I don't think you have anything to wonder about.

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    14y

    I'll join those who say it might not be worth it. But I will admit that you have to be competitive, so if the competition in that area has some goodie, then you will have to have it too, or else you won't get the better tenants.

    I posted much more at length in this next thread - because I believe that the market sets the rent, and not necessarily additional features. But you can certainly increase the interest in your property by additional goodies.
    http://www.biggerpockets.com/forums/52/topics/66798-rental-upgrades

    http://www.biggerpockets.com/forums/52/topics/69512-ways-to-increase-revenue-from-rentals

    1Reply
  • Mark UpdegraffBusiness Member
    Real Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 696 votes
    14y

    I just bought black for our kitchen remodel. It looks really great and we keep the upscale look with tile floor, black tile backspash, black sink, and stained oak cabinets and black micro-rangehood with custom copper/oak hood. I'll have to post a photo when we're done done :D

    If you have it in the budget to do stainless, why not? With tenants, I agree photos of the condition of the stainless are key. Clean them spotless and tell the tenant they need to be that way when they move out!
    I also agree with Steve Babiak in that the market really sets it and that is based on when it is on the market, and who your competition is at that moment. When you show a unit and a good tenant isn't interested, it makes you wonder... plus the market for those better tenants is probably smaller, so we hate to miss them because we didn't upgrade something and our competition did.

    location location location
    Mark

    Podcast Guest on Show #112
    Updegraff Group Realty4.746 Reviews
    WebsiteView Page
    2Reply
  • Account Closed
    Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    14y

    I would have to think this is market sensitive. I don't happen to see lots of SS appliances in my rental areas though some areas nearby do have them. I do believe that renovating kitchens and baths does help get better rents and tenants, but my experience suggests that middle of the road appliances and features will still get the rents and will last just as long. So many tenants just don't take care of the rental and something that should last 10 years might really last 3-5 years.

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    14y

    Most of those HGTV shows don't involve rentals ... so those fancy kitchens and baths could get trashed by some tenant. So what if you took pictures - your stuff is already damaged, and the tenant is almost always judgment-proof.

    Laundry is the big thing in SFR rentals. Just the fact that it is there will have tenants preferring your units. Tenants getting out of an apartment where they had to use a laundromat just want to do away with that.

    2Reply
  • Account Closed
    Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    14y

    Steve Babiak that has been my experience as well.

    0Reply
  • Matthew Schroeder
    Investor · Carmel, IN · Member since 2014 · 332 posts · 245 votes
    11y

    I have a lower-end rental on which putting in new, stainless steel appliances just doesn't make sense economically - however, I think I am going to try a "middle road" when it turns over next month and try this Rustoleum product on the existing white appliances (see link below).  

    This is absolutely NOT an endorsement or solicitation of this product, but I have been pretty impressed with Rustoleum products to date, and how they can "transform" certain aesthetic aspects of my rentals.

    https://www.rustoleum.com/en/product-catalog/consumer-brands/specialty/stainless-steel

    0Reply
  • Mauricio Hernández
    North Hollywood, CA · Member since 2013 · 38 posts · 2 votes
    11y
    Encino calls for SS in my opinion. White can work against you in that area.
    0Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    11y

    If you are getting all new appliances at least get black instead of white, no cost difference.  Probably they all want SS and it will be worth the difference.  I hate the stuff but it is popular and it is expected with granite. I think you may get a higher rent because it is part of a whole package in the advertising. Also you need to be competitive.

    0Reply
  • Bryan N.
    Investor · Hampton Roads, VA · Member since 2014 · 1k+ posts · 418 votes
    11y

    I have kitchens with stainless, kitchens with white and kitchens with a mix of black and white.  Washer/dryer in unit and overall cleanliness (clean carpet/laminate floors/tile floors/fresh paint) win all the time over actual stainless.  You would be surprised how many crap hole slumlords there are out there.  I have higher screening criteria and charge higher rents, all of the above brings about higher quality tenants.  Higher quality tenants equals less drama and they are happy because they are in a nice and well maintained property.  

    0Reply
  • Silvia B.
    Auburn, GA · Member since 2010 · 60 posts · 22 votes
    11y

    I go with black for rentals, SS for sales. SS is nice (I have it in my home) but I have seen how some people, even owners, care for their SS. A lot of scratch marks from scrub pads, etc.

    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    11y

    I use black.  We have stainless at the house and it takes a lot just to keep it looking nice.

    0Reply
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