What is the norm in Memphis TN

Question

I have been looking at some properties and even been told by some property managers that it is not uncommon to rent a place with no appliances. In my experience places always had a stove and refrigerator. Anybody else come across this? I have been adding the cost of those two appliance to my CAPEX when analyzing potential deals.

Thanks in advance.

Dean Harris · Answer

I own a large portfolio of single family rentals in Memphis, TN in the rental ranges from $900-$2300. You need to be careful using a one method of providing appliances....especially if it sounds too good to be true. In a lower end rental in Memphis, you can get away with minimal appliances (Borderline slum lord). Sometimes just a stove/oven will be enough. In other rental markets in Memphis, you will need to provide a stove and maybe a dishwasher and then in others you might need to privde everything in order to get your market rent. Be careful listening to agents and investors that own just a few rentals in a isolated location. I own property in 12 different zip codes around Memphis. Im happy to answer any questions you may have

I also host a weekly podcast called the "Investors Guide To Memphis Real Estate". You can listen wherever you listen to podcasts. I talk about this specifc topic in one my my shows!

Best of luck!

I also host a weekly podcast called the "Investors Guide To Memphis Real Estate". You can listen wherever you listen to podcasts. I talk about this specifc topic in one my my shows!

Best of luck!

Reed Rickenbach · Answer

I totally agree with @Dean Harris that it depends on the class of the rental (A, B, C, C) - I have a higher-end rental in Germantown that applicants would laugh at if there was no stove. On the lower end you can get away with less. Helps with the risk of theft as well. Talk to a local expert.

Kevin Lee · Answer

We were advised the same when we purchased a home in Memphis.  Residents bring their own washer, dryer, range and refrigerator.  Dishwasher provided.

Brian James · Answer

Thank you for your responses. I find that odd, but I will need to adjust my calculations on these deals.

Malorie Moore · Answer

Hi Brian,

It’s common, especially in Memphis, for long-term rentals not to include appliances. Since the resident provides their own, I wouldn’t factor them into your CapEx calculations.

Additionally, if any maintenance is needed, the resident would be responsible since the appliances belong to them.

Jordan Ray · Answer

I never supply appliances in any of my rentals and always rent them above market rent.

What is the norm in Memphis TN

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