Real Estate Agent · San Diego, CA · Member since 2016 · 12 posts · 0 votes
Hi everyone, first post here so I was unsure of where to put it so if it needs to be moved I understand.
I am looking at 2 properties here in Southern California to purchase a rent. I am looking for some insight as to what helps owner get top dollar for their rentals.
Washer & dryer included
Refrigerator included
electricity included
water included
furnished apartments
Have you found that it's easier to rent a property for top dollar when these amenities are included in the monthly rent?
I ask this questions because in Brooklyn, NY I see a lot of rentals that include utilities etc.
What are some of the perks or amenities you include to get the best price per unit?
I personally would never invest in a property that is not individually metered. I would never include utilities in the rent because tenants that do not pay utilities could care less what they use or what it costs.
A bad tenant can easily run up utilities into thousands of dollars a month if they choose to "get even" with a landlord, move in multiple family members or operate a laundry business out of the unit. Professional tenants inclined to setting up grow-ops also target properties with utilities included. Never wise in this business to include utilities.
Investor · Riverside, CA · Member since 2014 · 239 posts · 177 votes
10y
Those would definitely help rent the place, for sure, but it really all depends on what, where and how much you are looking to rent the place out for. For example, I have tenants that I keep the rent relatively low, but I don't cover any of their utilities (except sewer charge), and they are perfectly fine with paying them because we have discussed how I wont raise rent on them, they're happy, I'm happy, and quiet honestly I don't want the hassle of having to pay their bill every month (Laziness on my part.. ha). Its a total win win. But, If I were to say raise their rent $100 per month, I would then probably cover their water bill, with that being said, their water bill is usually about $100 per month anyways, so its all a matter of setting it up how you feel comfortable.
Its always nice to supply appliances just because not only is it a perk, but you can make sure that when they need fixing, they will call you because it is Your appliances to fix. Sometimes if its their appliances and they need fixing, it might be a cost they cant afford and they might let a Leaky washer (example) leak for an extended period of time, and make it a much bigger damage issue than youd want. But, on the flip side, like in my circumstance, I supplied some older, semi used but decent shape appliances, and the tenants asked if they could buy their own brand new ones, and by all means, go for it. Just my two cents. Welcome to BP by the way!
Rental Property Investor · Phoenix, AZ · Member since 2016 · 424 posts · 261 votes
10y
@Cameron Sigurdson You may want to consider what type of rental market you are in before determining what amenities need to be included. If there are a lack of available rentals and the property is in a good area and clean/updated there is no need to include all of those amenities. In our area its been a strong rental market (in favor of the landlord) since 2013. From 2008-2013 the market was not as favorable, so I could not charge as high of rents and at times did have to cover part of the utilities.
What works in my market is having updated and very clean properties. I do not pay electricity, water, sewer or garbage on any of my 14 units. When I say updated I mean newer vinyl flooring in kitchens and baths, fresh paint if needed, newer appliances, and pergo flooring. Many of my properties were built in the 1950's and 1980's so when I purchased them I did kitchens, baths, heaters (from baseboard to wall) and windows.
Every area is different so you may want to ask or call around and see what it standard. While offering more amenities may get you higher rent, it would become a wash when you factor in paying for electricity, water and furniture.
A lot of that depends on what particular market the rental is in. I'd be more than happy to chat about important features to keep in mind for the various neighborhoods here in SD, if you'd like. Feel free to reach out any time!
I personally would never invest in a property that is not individually metered. I would never include utilities in the rent because tenants that do not pay utilities could care less what they use or what it costs.
A bad tenant can easily run up utilities into thousands of dollars a month if they choose to "get even" with a landlord, move in multiple family members or operate a laundry business out of the unit. Professional tenants inclined to setting up grow-ops also target properties with utilities included. Never wise in this business to include utilities.