Applying the 2% Rule to Improvements and Additional Items

[Matthew Hodge]

I've got two questions, but they're related. First of all, how should we apply the 2% Rule, or another similar guideline, to improvements? Specifically, I've got a triplex that doesn't have central heat and air. The three units will each rent for $50 more if I add it. In order for it to conform to the 2% rule, I need to get the work done for $7,500. Am this a misapplication? Do you guys use a guideline like this for improvements to rental properties you own? Is a 1% rental rate return on improvements enough to justify making the improvement on rental return alone? Obviously we aren't going to over-improve for an area.

My second question is related: We are going to offer to the optional rental of a stackable washer/dryer to our tenants. Do you have a rule for how much to charge for additional items like this? If they will only pay $40/month for the washer/dryer, what's the cap on what I can pay for the appliance to make it profitable, in your experience?