Washer & Dryer in Rental

Washer & Dryer in Rental

Rental Property Investor · Toledo, OH · Member since 2017 · 262 posts · 215 votes

I am trying to collect some opinions on what other landlords do in a situation like this. I have a new property that has all the appliances in it now including a washer &dryer. The house rents for $800 per month and I would call it a class B to B- neighborhood.

I went to a seminar a couple of years ago on property management and the instructor said on houses he didn't supply appliances. He made the resident get them. If the unit had one in it he told them they could use it but would not replace or repair it. This instructor has about 200 units so he seems to have a lot of experience.

I have mixed feelings about this. On the one hand, most tenants aren't necessarily flush with cash so having to buy appliances upfront or later replace a unit might be a serious hardship. On the other hand, if they don't buy the units they may not take care of them. After all, if they are hard on the washer and dryer and it breaks and they know they can just call up the landlord and a new one will be delivered, great for them.

So, I am trying to see what others do. Do you supply all appliances including a washer and dryer and then support and/or replace them or do you make the tenant do it? Second, do you distinguish between "essential" and "non-essential", i.e. a stove and fridge might be considered "essential" and washer/dryer or dishwasher not so much the former is on you the later is on them?

Lastly, since turn over is such a costly endeavor that I am trying to keep at a minimum I am thinking appliances are a relatively cheap, but nice way to keep residents happy, staying, and paying.

I would appreciate the thoughts of you that are more experienced at this than I am. Thanks!

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Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
6y

@Michael Temple

The answer will heavily depend on the market, the tenant class, and your goals. What are the other rentals in your area providing? If the majority come with W&D then the decision is kinda made up for you. If most don't, then having them can serve as a means of differentiation which in turn allows you to charge a premium rent. If you want to keep expenses/headaches low, don't provided them. 

I supply W&D, but all of my SFRs are in a military town where the majority of the tenant pool are active duty who aren't moving in from local. That means they have to buy or rent a W&D. I look at the rental costs and low-end W&D prices to set my premium. 

If you already have them in there, I don't see a major downside to charging $25-50/month more in rent and leaving them. If they become a hassle, sell them when the tenant leaves and move on. If they work well, it could help with speed up turn over and up cash flow a bit. 

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  • Member since 2020 · 16 posts · 14 votes
    6y

    Check local laws-

    I’m my state in Australia the landlord must provide facilities to dry clothing be that a cloths line or a dryer but they don’t need to provide a washing machine, seems weird but there it is.

    The catch 22 is that if you as the land lord provide it then you must maintain it- no good deed goes in punished after all.

    That said, you  can put terms in the lease that IF and additional appliance breaks you won’t replace it, as long as there is mutual agreement in the agreement at the onset. 

  • Jack LuzeckyPro Member
    Property Manager · Saint Louis, MO · Member since 2017 · 76 posts · 56 votes
    6y

    Working for a large property management company, we supply kitchen appliances about 98% of the time, but most times we do not supply washer/dryer. It seems most people in st. louis are okay with purchasing a w/d set. As for kitchen appliances most tenants are looking for them to be included in the lease. When providing appliances we state "not to be repaired or replaced by landlord". 

  • Rental Property Investor · Member since 2018 · 56 posts · 38 votes
    6y

    We provide kitchen appliances in all our rentals.  Will occasionally supply W&D or just one if tenant doesn't have any and I happen to have one or previous tenant wants to leave theirs.  Which is usually due to hook ups in new place not being the same-gas vs elec.  I do however have in our lease we will not repair or replace appliances.  

  • Rental Property Investor · Toledo, OH · Member since 2017 · 262 posts · 215 votes
    6y

    @Brandi K. Is your non-repair clause apply to all appliances or just the washer & dryer?

  • Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
    6y

    @Michael Temple

    The answer will heavily depend on the market, the tenant class, and your goals. What are the other rentals in your area providing? If the majority come with W&D then the decision is kinda made up for you. If most don't, then having them can serve as a means of differentiation which in turn allows you to charge a premium rent. If you want to keep expenses/headaches low, don't provided them. 

    I supply W&D, but all of my SFRs are in a military town where the majority of the tenant pool are active duty who aren't moving in from local. That means they have to buy or rent a W&D. I look at the rental costs and low-end W&D prices to set my premium. 

    If you already have them in there, I don't see a major downside to charging $25-50/month more in rent and leaving them. If they become a hassle, sell them when the tenant leaves and move on. If they work well, it could help with speed up turn over and up cash flow a bit. 

  • Rental Property Investor · Member since 2018 · 56 posts · 38 votes
    6y

    Our appliance clause says it pertains to all appliances.   I include this even when the property has brand new appliances. I've never had anyone question it.  

  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    6y

    @Michael Temple

    This is completely driven by your own market.  I supply all kitchen appliances and washer and dryer.  If I did not it would put me at a disadvantage in my own market.  @Brandi K. could you share your appliance clause. Pm me if you prefer.  I have been thinking about this for a while and haven’t pulled the trigger on it.

  • Saratoga Springs, NY · Member since 2017 · 30 posts · 14 votes
    6y

    @Michael Temple

    I supply stove, fridge, dishwasher (I currently don’t have a dishwasher so I am learning how valuable they are). With that comes repairing/replacing those.

    I try to avoid supplying a microwave. I have an above the stove one in one unit, but if that were to break then it’s quite costly. You could buy a cheap one that plugs into the wall, so I would prefer to offload that responsibility onto them.

    Not providing a washer and dryer has helped me screen tenants. Again, I don’t want to be responsible to repair/replace these items. I’ve had snarky responses from tenants about not providing a washer or dryer (but there are hook ups), and it has helped me eliminate considering those applicants. If they complain about this or feel entitled enough to voice their concerns, I believe it helps me learn they would be a problem tenant.

  • Ryan DenmanPro Member
    Erie, CO · Member since 2018 · 44 posts · 14 votes
    6y

    @Michael Temple

    Unless required by law, or providing washer/dryer are standard in your market, don't do it. It is one more thing to maintain, unless providing them gives your rental a competitive edge in the market. I would say the same for dishwashers, a very easily abused appliance that can cause headaches.

  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    6y

    We always supply a fridge and a stove. Washer/dryer depends on the area the home is in. The worse tenant class you will attract the less I would recommend supplying the washer/dryer. It is just another thing that can break or be repaired. What is your competition doing in your area? You want to minimally do what they are so your home is not view as less desirable by perspective tenants. 

    On another note, you live in an area where someone can rent a house in a B-class neighborhood for $800? I need to move there, ha. 

  • Realtor · Saint Louis, MO · Member since 2017 · 228 posts · 174 votes
    6y

    @Michael Temple I don't want tenants moving large items in and out as a rule, so I provide kitchen appliances.  In our market, it seems most are okay with just having access to W/D hookups and that's good enough.  I know that I have one unit which does not have access to any W/D facilities, and it is a major deal breaker for a lot of people.  I had to cut rent by $100/month to place a tenant, so we are going to add a facility next time we turn it over.

    Cheers.

  • Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    6y

    We have always supplied them A class SFH & if necessary repair them, but in most cases we buy the 5yr extended repair that we have used A LOT over the years. One new Samsung fridge went through 5 new control boards on their dime before we sold it, a new Samsung dishwasher got a new pump $375 within 5 months & an LG d/w needed a new control board $275 also on their dime. Just had a new $425 Whirlpool dryer fail on the install so they took it back. None had been abused, just dismal quality control.

    In our 6 unit multi we raised all the rents $50/month & retired the old coin-op machines & put in new scratch & dent washer/dryer. Dryer is electric (NG run was too involved) so I metered the KWH & found the new dryer averaged about $25/month & water consumption had not increased. 

    Tenants love it & the rental increases more than compensated for the initial & so far all operating costs.

    Happy tenant, happy, peaceful life !!!

  • Rental Property Investor · Streetman, TX · Member since 2018 · 528 posts · 495 votes
    6y

    @Michael Temple

    A lot depends on your local market. Adding a washer/dryer is an easy way to differentiate yourself. We own mainly C-class properties. The majority of our competition does not offer W/D. Most of our units were purchased with W/D already. At first I was skeptical but noticed the units with W/D rented faster at a higher rent. For new units I have started offering W/D as an upgrade for $25 extra a month. I can purchase a used set for $200-300 off Craigslist so the ROI is not bad. If a unit breaks I can replace it for $100. Don't go overboard with stainless steel. Just get a basic unit.

  • Rental Property Investor · Streetman, TX · Member since 2018 · 528 posts · 495 votes
    6y

    @Ryan Allen

    I'm surprised you don't like over range microwaves. I've added them to all my C-Class units. In this class of property very few properties have this upgrade. This helps me get top of the market rent. Watch Lowe's and HD sales. I've been able to buy them for as low as $129 for a basic unit. I purchased everything they had in the store at that price. Installation is easy, only takes me an hour. I just added one this month and was able to bump rent $60/month. No brainer ROI.

  • Rental Property Investor · Toledo, OH · Member since 2017 · 262 posts · 215 votes
    6y

    @Brandi K. Thank you, do you think you could share your appliance clause with me? You can message me privately if you prefer.

    @Bill F. That is a good point about differentiation. I agree with what others said about the class of tenant you are attracting. I would say the neighborhood is one where you *can* get quality tenants, but you there are a few places in there that are more crappy with landlords that care a lot less than I do and you are attracting a lower class tenant. I would say the neighborhood is a mix of rental and homeowner with it more heavily toward homeowners right now, which is good for attracting quality tenants.

    @Michael Noto I am located flat in the middle of the mid-west (Ohio) and near a smaller city (Toledo). Housing prices here are definitely not as high as other places I hear people talk about. I am calling it a "B" class neighborhood because I believe it tends towards homeowners and people seem to take care of their properties for the most part. However, this particular place is only a 2 bedroom 1 bath, which is really less than ideal for a rental. I much prefer 3/2 houses, but this was a really good deal with the terms (seller financing) I was able to get so I decided to add it to the portfolio. I am probably pressing my luck a bit at $800 on the rent. Zillow is saying $800, but over the last month, it has also gone as high as $925 and back to $800. My Realtor thinks for that house $800 is the extreme upper limit. The good news is if you want to live in that area I don't have a lot of competition for houses to rent. I think there are only 2 others in the entire area outside of apartments that are available, but both houses are a little bit larger and only charging a smidge more on rent.

  • Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    In unit laundry is a huge selling point. Will drastically decrease vacancy and give a bump to rents. This is the #1 upgrade I tell clients to do and I do in all my units.

  • Rental Property Investor · Toledo, OH · Member since 2017 · 262 posts · 215 votes
    6y

    @Henry Lazerow A few others have also made this point. I took an application for this property last night where I think they would make good residents and it was a selling point to them. As I mentioned above I am probably at the highest point on the rent I can get for this house in this neighborhood so if this gives me a little edge to get that rent it might be a good thing.

    If it becomes a hassle or I get residents that don't seem to treat it well or care then I can always put the clause in the next turnover that @Brandi K. mentioned and stop doing it. I have never owned or rented this house before so I am still trying to feel out the class of tenants and rent I can charge. I am just using my basic observation right now of the neighborhood and Zillow for what I think I can get for rent.

  • Rental Property Investor · Centralia, WA · Member since 2017 · 75 posts · 85 votes
    6y

    I bought a washer/dryer from the Home Depot back in May (still waiting for it as it was rescheduled a second time) for my duplex in Pittsburgh.  It was based on my realtor's recommendation to get one so I can get some tenants in there as it's currently empty.  It's very enticing for a prospective tenant to choose between a rental with a washer/dryer and one without.  

    The virus made a mess of the rental market and there are tenants out there wanting to move, relocate, and rent out a place.  A washer/dryer in the basement of a rental being available beats having to drive to the local laundromat and with less exposure to the virus.  

  • Saratoga Springs, NY · Member since 2017 · 30 posts · 14 votes
    6y
    Originally posted by @Pete Harper:

    @Ryan Allen

    I'm surprised you don't like over range microwaves. I've added them to all my C-Class units. In this class of property very few properties have this upgrade. This helps me get top of the market rent. Watch Lowe's and HD sales. I've been able to buy them for as low as $129 for a basic unit. I purchased everything they had in the store at that price. Installation is easy, only takes me an hour. I just added one this month and was able to bump rent $60/month. No brainer ROI.

    Thanks for the tip - I'll need to look more carefully into this

  • Flipper/Rehabber · Sacramento, CA · Member since 2016 · 282 posts · 85 votes
    6y

    @Michael Temple

    I have a property in CA and I have included the washer/Dryer. I think the thought process I had was it’s just easier for the tenant to move in. 

  • Tim JacobPro Member
    Real Estate Agent · Baltimore, MD · Member since 2016 · 520 posts · 379 votes
    6y
    I agree with keeping them. It adds a large value to the units. Nobody likes the laundrymat. Find a good used appliance guy and a good repair guy. Decent stackables can be as low as 350 in my area. So replacement won't kill you. If you can cut turnover just 5% replacing one unit every w/d every 10 years is well worth it. If its B class this is a definite.
  • Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    6y

    Originally posted by @Pete Harper:

    @Ryan Allen

    I’m surprised you don’t like over range microwaves. I’ve added them to all my C-Class units. In this class of property very few properties have this upgrade. This helps me get top of the market rent. Watch Lowe’s and HD sales. I’ve been able to buy them for as low as $129 for a basic unit. 

    Got you beat...but you should have seen the huge dent in the side. Still running 5 years later...but I dread ever having to remove it. Got the bottom one $100 on Craigslist, new Samsung, never used, didn't fit as clearance between stove top & microwave was only 12 inches if installed.

  • Tim JacobPro Member
    Real Estate Agent · Baltimore, MD · Member since 2016 · 520 posts · 379 votes
    6y

    Another thing I forgot to mention is if you leave the hookups it assumes the tenant will install the w/d correctly.  There is a very good chance they wont and the washer disharge will not be tied down to the drain or laundry sink properly.  Then you have destroyed flooring.

  • Member since 2019 · 1k+ posts · 1k+ votes
    6y

    @Michael Temple

    Market dependent. Do what is expected in your area or else 1 up the competition. I can’t even process a 2 bedroom B class house for $800 monthly, my lone C class 2 bedroom main floor unit rents for $1250 + all util. I haven’t seen rents below $1,000 in decades unless it is literally a crack shack gang house.

  • Rental Property Investor · Victor, ID · Member since 2017 · 51 posts · 31 votes
    6y

    @Michael Temple

    I read about someone renting individual appliance to the tenant. It seems a little 🦈 shark-y to me. I’ve also read about landlord making the tenant pay for maintenance and repairs, and a that all appliances are provided as “conveniences”.

    I guess to me I set the rent at a certain amount based on what I’m willing to include. And I expect a certain amount of performance from that appliance, so when the time comes to replace or repair it, I’m prepared.

    I think it’s important to set expectations up front, like standard maintenance with a furnace, does the tenant or landlord change the filters. With a water softener, does the owner or tenant add the salt... etc.

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