How important are dishwashers and laundry?

[Jim Truman]

Good morning. I asked this in the Cleveland forum because I know the answer is somewhat market specific and that's where we're currently looking to invest. But I wanted to ask here as well to see what other investors think.

How important are things like dishwashers and in-unit washer/dryer for a Class C+ neighborhood, 2 bedroom rental unit? We're looking for a second investment property and being rather picky because we're out of state so turnover costs paid to the property manager can really kill a deal. We want a unit where the tenants will stay awhile and not get annoyed at having no dishwasher or no laundry. We also don't have a ton of money to invest so each property has to be a good one. 

Do you find these things really don't matter much when it comes to retaining tenants? What do you find are the most important features for keeping tenants? Overall square footage? 2 full baths vs 1? Kitchen storage space? Garage/carport? Fenced yards? 

A market like Cleveland (or similar) has 100's of properties so the more features I can add to my list to rule properties in or out will help. 

Thanks

[Ujwal Velagapudi]

I don't think a dishwasher matters much, especially in C neighborhoods. Never had them in those buildings, and in my nicer (B) buildings did, but they would be more of a maintenance headache unless brand new (repairs, water bill, leaking, etc.).

In-unit washer/dryer was something I have never seen in a C building...ever. Of course a laundry room or some coin laundry machines in the facility would be nice, but just depending on location and proximity to laundromats, you may be able to get away without have them on site. This would be something that tenant could choose another location for - no laundry option on site.

I would say location is primary as so many factors (including safety) go into that for a tenant, so buy right in terms of close to schools, parks, offices, grocery stores, etc. Then it would be bedroom & bathroom count, parking situation, and a whole bunch of other features you mentioned. Flooring, kitchen set up/space, etc. I've never been asked square footage, but it is posted in ads, but I think the overall size and feel matters.

Also, not sure where I would rank this since it's not a true feature, but are utilities included or not, and how is it billed? $800/mo + utilities is very different than $800/mo all inclusive (for you and the tenant). As an investor, I'd look for the separately metered buildings. This is great since we don't touch the utility costs, and puts the onus on the tenant, but also I've seen in advertising that you can charge the "same" rent as other buildings and people won't always consciously register the extra costs for utilities. At least it gets the foot in the door, and if it's a nice unit, they may end up choosing it over a slightly cheaper unit.