Hello, I have 36 one bedroom units and I am looking to enhance my rental income by installing a washer/dryer combo appliance in each of the units.
My question is: is there any way to get bulk pricing and how would I go about getting it?
Also, what should my rent increase be with the current rents at $575 each? I am considering increasing the rent for water and convenience sake to $635. Anyone who has one bedroom units knows you can only charge so much and go so far on increases. I am doing cosmetic upgrades also so that the tenants see improvements.
You should look at other apartments of similar size and see what they're charging with in unit laundry. That's really the only way to gauge where your new rent should be. I would imagine you could find an appliance resale store and negotiate a discount on the purchase of that many, or go buy new. Home depot may even give a 10-20% discount given the bulk quantity.
Have you checked with Home Depot yet. I have been sent to the bid room for various things (Lumber, Lighting, Steel Doors), but I have never tried for appliances. I'd be curious what kind of discount they can give.
I'd recommend calling around to all the appliance stores in addition to the big boxes. In the end, stackables are expensive and the discount will likely only be in the 5-10% range but better than no discount.
Regarding the rent increase, that will be dictated by the market and you can shop to find market rates. $575 is a price sensitive resident and a 10% increase is not small even with the added value. Cap ex and things like appliances can eat up profits at this price range.
Sounds like you are on the right track and just analyze the math on the rent increase vs the cost is the right approach. Every $25/mth increase in rent likely increases the property value by $3000+ per door.
I don’t think you should determine your price increase until you figure out how much 36 washers/dryers will cost you & get an educated guess of how much the water bill will increase
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