Washer & Dryer in Rental

[Michael Temple]

I am trying to collect some opinions on what other landlords do in a situation like this. I have a new property that has all the appliances in it now including a washer &dryer. The house rents for $800 per month and I would call it a class B to B- neighborhood.

I went to a seminar a couple of years ago on property management and the instructor said on houses he didn't supply appliances. He made the resident get them. If the unit had one in it he told them they could use it but would not replace or repair it. This instructor has about 200 units so he seems to have a lot of experience.

I have mixed feelings about this. On the one hand, most tenants aren't necessarily flush with cash so having to buy appliances upfront or later replace a unit might be a serious hardship. On the other hand, if they don't buy the units they may not take care of them. After all, if they are hard on the washer and dryer and it breaks and they know they can just call up the landlord and a new one will be delivered, great for them.

So, I am trying to see what others do. Do you supply all appliances including a washer and dryer and then support and/or replace them or do you make the tenant do it? Second, do you distinguish between "essential" and "non-essential", i.e. a stove and fridge might be considered "essential" and washer/dryer or dishwasher not so much the former is on you the later is on them?

Lastly, since turn over is such a costly endeavor that I am trying to keep at a minimum I am thinking appliances are a relatively cheap, but nice way to keep residents happy, staying, and paying.

I would appreciate the thoughts of you that are more experienced at this than I am. Thanks!

[Bill F.]

@Michael Temple

The answer will heavily depend on the market, the tenant class, and your goals. What are the other rentals in your area providing? If the majority come with W&D then the decision is kinda made up for you. If most don't, then having them can serve as a means of differentiation which in turn allows you to charge a premium rent. If you want to keep expenses/headaches low, don't provided them. 

I supply W&D, but all of my SFRs are in a military town where the majority of the tenant pool are active duty who aren't moving in from local. That means they have to buy or rent a W&D. I look at the rental costs and low-end W&D prices to set my premium. 

If you already have them in there, I don't see a major downside to charging $25-50/month more in rent and leaving them. If they become a hassle, sell them when the tenant leaves and move on. If they work well, it could help with speed up turn over and up cash flow a bit.