Washer & Dryer in Rental

Washer & Dryer in Rental

Rental Property Investor · Toledo, OH · Member since 2017 · 257 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 2019 · 7 posts · 2 votes
    6y

    Definitely a bonus for the tenants and gives you an edge if you do supply depending on your tenant needs and ability to manage the extra "possible" headache.  
    No renter likes to move around washer and dryer sets.  I wrote up an addendum in the lease concerning the added appliances.. no issues.  I did this at the time of lease renewal (went ahead and hooked up myself), and showed the tenants how to operate.... so the small increase in rent was easily looked over for the easy access of a good used W/D. 

  • Investor · TX · Member since 2020 · 56 posts · 54 votes
    6y

    I think it's fairly easy for a tenant to get a used refrigerator on Facebook Marketplace or Craigslist for a couple hundred dollars, but washers and dryers are extremely expensive.  It is a plus to prospective tenants to have them in place, and I feel, helps to attract a better quality tenant (e.g., if they are desirable tenants and are considering several options, they will most likely take the unit that comes with W/D).  Two more points:  If there are hookups in the unit, I want to be sure the appliances are functioning and installed properly in order to avoid water issues, and, typically W & D are pretty durable.  Just ask someone who has a laundromat!  They last for like 20 years, and will be more value to your tenants than cost to you. 

  • Rental Property Investor · Toledo, OH · Member since 2017 · 257 posts · 215 votes
    6y
    @Tim Jacob You brought up a really good point about finding a reasonable repair person. We have one company in the area that I know of that does appliance repair, but in my experience, it is never a good idea to use them. They do good work, but they charge a fixed $75 or $95 dollar diagnostic fee that is rolled into the repair if you do it, but you pay if you opt to not do the repair.

    This approach has been a thorn in my side forever. I often find that after having them look at the appliance in 80% of the circumstances it is a big repair that will cost a few hundred bucks to do. The problem is in most cases you can purchase a brand new unit for slightly more than it takes to repair the old unit, which may have other problems even if you elect to do the repair. So if you decide to skip the repair you just flushed $95 bucks down the drain.

    So where do you find appliance repair guys that charge a better "diagnostic" fee and if you do it repair fee?
  • Rental Property Investor · Toledo, OH · Member since 2017 · 257 posts · 215 votes
    6y

    @Ashley Byington I agree with most of that in principle, but sometimes your rent amount runs into a ceiling for the market and including appliances *could* be one more expense/headache that may not be worth dealing with. I don't think I would ever charge rent for individual appliances. I know places like the "rent to own" do stuff like that and can make money off of it, but like you, that sounds a little bit over the top for me.

    I am going to try and run the current property with the washer & dryer since they are already in there and just see how it goes. It won't break me if I end up replacing them and I can decide down the road if I want to put the "convenience" clause in the lease. For now, I am going to leave it out and see how it goes.

  • Investor · Dallas Tx · Member since 2020 · 11 posts · 6 votes
    5y

    Quick opinion here sweet and to the point.Check your surrounding rental competition, if everyone around you is providing washers and dryers and your not, your the odd man out. just for the simple fact that you aren’t providing those 2 things tenants might just go with the other rental homes that have washers and dryers 
    so it caters from neighborhood to neighborhood. I always try to match my rental competitors or do slightly better than them. Best of luck! 

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