Provide laundry machines or not?

Question

My husband and I bought a fixer upper duplex (both sides) and it's been rough.  We've just about finished with one side and would like to get it rented so we can at least get some sort of  income while we fix up the other side.  The problem we're having is that we would like to provide a washer and dryer for our tenant, but we can only fit a 24" stack-able unit in the 2bd/1ba unit.  Apparently those are really hard to find.  
My question is:  I'm pretty sure we can get $850 for the unit with a W/D.  Since it seems the cheapest one we can find is about $1000 new (can't seem to find a used one for much less), should we go ahead and install it, or should we reduce the rent?  How much should we reduce the rent?
We're first time landlords and this has always been a dream of mine.  I'd appreciate any feedback.  Thanks!!

Shanequa J. · Answer

Jeanette J. If only a stackable washer/dryer can fit, I would go ahead and buy one for the unit. The reason is because most people do not have stackables and they would have to buy one. It could be a turnoff especially if they already have a regular washer and dryer. Also charge a fee for each application. I let them know that I don't make a proft and it's strictly for running a background and credit check. I also give them the option of doing their own through  biggerpockets smartmove. Most people prefer that because they don't have to give me their SSN.

Account Closed · Answer

Hi Jeanette,

We only provide hook ups on our duplexes. When potential tenants asked, we told them we can provide the washer and dryer for an additional $50/month.  So far, two tenants signed up for it while others bought the washer/dryer themselves.

Sam W. · Answer

Good advice Shanequa regarding biting the bullet and putting the stackable washer/dryer in the unit.  This is an unusual applicance that many prospective tenants won't necessarily want to buy. They  would probably be hesitant to rent the apartment if they had to purchase a stackable.

Jeanette J. · Answer

Wow Rob.  I have called used appliance stores.  It seems that they're all affiliated with eachother but use different store names.  There are a couple I haven't tried yet.  I've been so busy trying to renovate the other side of the duplex while showing the finished side to prospective tenants.

Rob K. · Answer

Have you called the used appliance stores in your area? In my area, there are several stores. The one that I go to has about a dozen of those stackable washer dryers for $299. I wouldn't buy a new one if you can get a used one for 70% less.

Jeanette J. · Answer

Thank you guys for the responses.
Sam, I don't know how you found that add.  I followed the URL and saw the add, but when I search my local Craigslist, it doesn't come up.  I'm going to call them tomorrow morning anyway.  Thanks for doing that!!

Mark Tamondong · Answer

Isn't $50/month too high for tenants? For me it may be too high plus with the monthly rental payments made. Maybe try adjusting the price so that others who do not have their laundry machines yet can afford to rent theirs from you.

Sam W. · Answer

Jeanette...I've installed quite a few of the apartment sized stackables - in fact am buying two more in the next couple of days.  I like offering washer and dryers as it helps the unit rent, especially when an odd size (stackable apartment size) is required.  Most tenants won't go out and buy this type of appliance.

Here is a pretty good deal in your area on a stackable:
  http://fortcollins.craigslist.org/ppd/3208962881.html

Sam

Mark Forest · Answer

@Jeanette.  We have the same issue with a house that has a tight utility room.  An expensive stackable is the only thing that will fit unless they just have a washer.  We are not going to buy it yet.  We will attempt to rent as is, and if it comes up we will suggest the stackable solution, and tell the tenant to buy it themselves.  If this doesn’t work we will buy a used stackable at discount appliance stores.  I can’t see this be a make or break issue.

John C. · Answer

You know I just remembered another reason to charge the application fee. It causes the prospect to have to put some skin in the game. To put their money where their mouth is. They are told up front that they need to have a good rental history and stable employment equal to at least three times the rent. If they are uncomfortable with this then we tell them that we probably aren't going to be a good fit . Otherwise they'll just drop applications all over town in hopes of getting through somewhere.

We do however make exceptions if someone can prove to us that they've experienced a "one time bump in the road". As long as it's not a "lifestyle choice'.

Provide laundry machines or not?

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