Hi I am furnishing my triplex in Cleveland and there is an appliance shortage. Many are on back-order and even the scratch and dent places have limited stock. I spoke with my contractor and he mentioned that for his rentals, he normally does not supply appliances and that it's very normal for renters to move in their own appliances. Is this true? The rent for both 2/1 should be about $1K and the efficiency is $700. He mentioned the appliances don't make a difference in the rental price, is that true? i would say a few thousand if this is true, however he did mention that perhaps the efficiency needs the smaller set of appliances since it's already for people on a budget.
Thanks in advance for your feedback!
@Suzanne Chan there is a shortage of just about everything going on in most places is what I am experiencing; appliances, flatscreens, computers-you name it. I do not agree with your contractor, it may vary by area perhaps. Certainly in the counties where we have rentals tenants expect appliances or they look elsewhere for an apartment. All the best!
I invest in Erie and there is some back order going on across the country (I wanted to buy a fridge for my house I'm selling in L.A. as well and it's on back order for like a month).
Ideas as to where you can buy appliances now:
-Used appliance shop (especially useful if you're out of town and need delivery)
Granted, used fridges can be touch and go but a used range tends to last much longer without issues.
In the Erie market (less than 100 miles from Cleveland) people expect for there to be appliances, even in the C-class rentals.
Hi Suzanne, yes it has been a big issue for us lately.
Appliances can make a difference; renters tend to expect a stove and fridge. However, it depends on the price point and also on what surrounding properties for rent have to offer.
It may take a little longer to find a tenant who has appliances in tow, but this might be the most realistic option.
Yikes. This is not a good sign for the economy as a whole.
Thank you all for your feedback, the appliance shortage is pretty crazy. I ended up working it out with my PM that we will advertise with no appliances and if they are willing to pay a little more i can go out and purchase one. I had to reduce rent by $50 a month to $950 but that's ok for now, hopefully when appliances have a steady flow again and we have new tenants we can charge a bit more but apparently a lot of renters move around with their appliances. The one thing she said I did have to have that was more of a deal-breaker for renters was 2 hook ups for washer and dryer instead of 1. That was interesting so I will make sure my contractor addresses that issue. Thanks for your all your feedback!
Wait, you can’t get any appliances so your contractor says have tenants move in and provide their own? Where are they supposed to get any? Or is he trying to trick people in to moving in only to find out they have to rent without appliances for a month?
We definitely have a shortage of central ac units in Vegas, it’s taking a week instead of a day. And I did have to go up $100 from cheapest fridge with ice/water in door at Lowe’s. But it certainly seems like only the cheapest are out of stock. Try Lowes/Home Depot and then click check other stores if your closest store doesn’t have them. Try internet appliances sellers. I try to avoid scratch.dent appliances as you are setting the town that you don’t care about wear and tear they may cause.
Yes agree on a shortage of appliances specifically that are the best value. I flip houses in Cleveland and on our most recent project we paid double for our stainless dishwasher and had to go to a big box in Toledo to stay on our timeline. We're flipping in 2-4 weeks so we're more aggressive in managing our turn then our pennies. This ultimately increases our cost per project but the goal is to have a higher year end ROI.
As far as appliances impacting rent - imo it’s more about overall fit. When the kitchens half nice but the rest of the house is beat your still going to get a tenant that’s paying market for a beat up house.
The guy I buy from here in Phoenix has out of stock in fridges. He told me that he goes to California and gets a lot of new cheap appliances but lately the ships that bring in the cargo are not coming. I had to buy a new more expensive appliance that he had for sale. It was more than I cared to spend but it is what is, I had to raised the rent $100 just because I put a premium appliance. The renters fell in love with it. I fell in love with it. My own fridge is way old, sort of wanted to my self but I rather put it in the investment property.
I am in the appliance business and I can assure you there is a huge inventory shortage. Whirlpool is the biggest supplier of appliances and are predicting an inventory shortage for atleast 2 quarters. I personally have over 75 appliances on backorder and I have friends in our industry and across the nation with much more than that. If you guys seriously need appliances get them now if they are in stock and if not your gonna have a lot of trouble getting any in the near future.
Thanks for the update Tommy
Hey There @Suzanne Chan , I am an investor in Cleveland of both multi-families and SFH, There is most definitely a shortage of appliances. To directly answer your question about appliances, I personally provide appliances in my MFH, my SFH I typically do not furnish appliances unless it is required by a payment assistant program OR I get a long term tenant (18 months or more). Just some ideas for you :)
@Mike Mocek thanks for the feedback it's a very large triplex but I can't believe the shortage it just seems weird to not even provide the stove but I guess depending on the renter we can see if they need one and are willing to pay a little more. For the efficiency I was told to provide a small set, is that what you have normally done as well? The efficiency is actually larger than most 1 bedrooms just does not have a divider but it has a huge room.
As I am reading your post I am order from Bestbuy which I have never done in the past. Home Depot and Lowes were out of stock of the entry level stainless appliances we use in rentals and flips. Never ordered from Best Buy but they are showing me a 7 day delivery in my cart. Hope it checks out.
Hello all, just listed my units without appliances and it does feel weird but according to some other people they said it's very normal. Being in California it just seems so wild to not offer appliances but if they need it, I will supply them. Just would hate to buy the appliance and then have them not even need it. There is definitely a shortage of lower priced appliances. My contractor said there is also no wood left on the shelves it just a crazy time.
We found some wood at Lowe's and we bought almost all of it on the shelf. You're right there is a massive shortage
@Suzanne Chan Welcome! I have actually used a Rent A Center for appliances. They were very good and prices were fine. Also gave me time to rent a fridge at a good price until my Home Depot stuff arrived this week. Just fyi. Good luck and keep us posted.