Vancouver, WA · Member since 2013 · 13 posts · 0 votes
I've been working on my first deal for a while now, hoping it will close any day. I negotiated 3 existing attached flat screen TVs to be included in the deal. My hope is to use them as enticement for new renters, but I don't want to unintentionally obligate myself to replace them any time a renter breaks one.
I assume the correct place to set this up is in the rental agreement, but how?
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
13y
Instead of "giving" it to the renter, just offer it as being included with the rental. That way it's still there for the next tenant.
And yes, it should be addressed in your lease agreement. My lease has a spot to include things like this, which I've used to list items such as refrigerators, washers & dryers, etc. Basically anything you don't intend to repair/replace. It reads as follows: "The following items of personal property are included in the premises without warranty and landlord will not maintain, repair, or replace them:____________________."
Vancouver, WA · Member since 2013 · 13 posts · 0 votes
13y
Thanks for the replies!
Ryan M. - the problem with removing them is that I don't think I could get much for them if I tried to sell them, I don't want them in my house, and removing them would require me to fix the walls, which are otherwise in perfect shape right now. They also make the place look great because it's only got 980 square feet, but the flat screens and vaulted ceilings make the space seem really reasonably-sized.
Wayne Brooks - that's actually an interesting idea. For what I could sell them for, just a single month of rent would offset the cost of losing the TVs. If it helps me get top dollar for every month after that, it's a win. Still, I'd rather tie the enticement to the property so they lose the TVs if they move out (and elect NOT to steal them).
Kyle J. - That's the kind of thing I was hoping for. Refrigerators? What all can you legally include in that list of items?
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
13y
Originally posted by Ian Crane:
Kyle J. - That's the kind of thing I was hoping for. Refrigerators? What all can you legally include in that list of items?
In theory, you could list whatever you aren't legally required to provide.
Things like refrigerators, washing machines, clothes dryers, etc are considered amenities and you don't have to provide them. However, if I do provide them (and I don't always), I list them in the lease as explained previously so that it's clear I am not going to repair or replace them if they break.
That way, if a tenant calls me and says the ice maker isn't making ice, I don't have to take time out of my day and money out of my pocket to fix it or potentially buy a new fridge. I just refer them to the lease.
But my tenants understand that. I provide these items as a convenience to them to help with their initial move-in costs and/or make the property more marketable when I'm trying to rent it. If, down the road one of these items fails, well at least they got a few years out of it before they had to buy one for themselves.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
13y
Originally posted by Ryan M.:
What about when the ice maker leaks and floods, who fixes that?
In the case where something/anything was causing further damage, I would take care of it. In your example, that would simply entail turning the fridge's water supply valve from on to off.
Things don't always go smooth and they may all come up stolen.
This.
Tenants will break them (run into them, leave them on and burn an image into the screen, want a new one and purposefully break them).
Signing bonus is the only thing I would do, and make sure to include something that there are no guarantees or warranties on the TV.
If including them is the only option, make sure there's something signed where it's a convenience for them and if they break, the color messes up, etc., you're not responsible for replacing, fixing, or messing with it.
Investor · SE Wisconsin/NE Illinois · Member since 2012 · 109 posts · 57 votes
11y
My wife and I were just discussing this idea today. Use the tv as an enticement. I mean, people have their priorities totally out of wack... if you raised rent by say $50/month over market and included a new flatscreen tv (and even explained why rent was so high), I know people in my neighborhood here in Milwaukee would be all over it...
Maybe you could even tell them that if they stay in the house for 12 months, keep it clean, AND pay on time for those 12 months, they could keep the tv when they do leave. An extra $50 a month in rent is $600 a year, almost double what it would cost to buy a brand new 48" in tv.
However, I totally agree with @Jon K. ...it would say specifically in the lease that if the tv breaks or anything happens to it, you wouldn't fix it, its a privilege, not a right.
@Ian Crane how did the TVs/signing bonus end up working for you?