Re: Purchasing rental appliances - Posted by Frank Chin
Posted by Frank Chin on July 06, 2004 at 05:14:31:
My opinion is it depends on what’s available in comparable units in your area. I always include a fridge and stove with my units, and I’ve been renovating my rentals, and renovated units include a dishwasher as well. Some units even include a “washer dryer”. I’ve taken out window A/C’s due to mainteance issues, unless its a “thru the wall” unit".
1- In my area, NYC, and suburbs, many apartments and homes available for rent includes such appliances. A few don’t and I hear applicants complain loudly about them, and they usually avoid those units.
2- Rents for SFH runs $2,000 or more. If the tenant pay “first, last, a months security” PLUS appliances for another $1,500, then he’s into $7,500 already. That’s not far from paying 3% down on a $300,000 home that often includes appliances.
3- I price my units 10% below market PLUS have my rentals look just so, and I manage usually to rent it out in one day, often on the third week of the month, after I have time to paint and clean the place whent he prior tenant vacates the last day of the prior month. In other words, I rent out a unit on the third week of June for July 1 occupancy, rather than to wait for a tenant to give his 30 day notice, and start on Aug 1, resulting in losing a months rent.
I just rented a unit out for June 1 on the third weekend in May. The tenant I picked originally wanted to move in July 1 so he can give 30 days notice where he was. But after I told them that several applicants (which was true) wanted the place for June 1, and will be given priority, this applicant who happens to be my first choice worked something out with his prior landlord, and the 30 days was waived.
Because he rented his prior home for 15 years, the wife made over 100K/year, the husband works 2 free lance businesses, PLUS the fact that they rented for so long because they don’t have a desire to be a homeowner, and an excellent credit report made them my top choice - compared to others.
4 -I had a dozen applicants who wanted the place because it was:
a- 10% below market
b- Includes an AC, washer, dryer, dishwasher, stove, fridge.
c- Painted and newly carpeted.
By renting this a month sooner, and a good possibility they stay 5 to 10 years compared to the normal 2 years, my ability to offer value would in the long run save me plenty in turnover costs, besides collecting a months extra rent to begin with.
5- I now buy stoves with self cleaning ovens because rentals with dirty ovens are a big turnoff, and the wife was tired of spending hours cleaning ovens with the irony that we don’t have a self cleaning unit ourselves, and we don’t have time to clean our oven adequatley.
The funny thing we found was some tenants who complain about an oven not thouroughly cleaned when they first rented the place, after my wife spent hours scouring it, are the same ones that leaves an oven never cleaned when they leave.
YES - for this reason, I find the few extra dollars well spent, and if tenants can just have the oven clean itself, after each use, it’ll save half a days work for us during turnover of the units, since as I mentioned, some tenants never bother to clean the ovens.
Hope this helps.