Windows or no Windows

[Mitch Atkins]

I am a new investor who just purchased my first property 2 weeks ago and I'm in the process of getting quotes and deciding what needs to make the Reno budget of 8-10,000$. The house is located in Graham NC 3 bed 1 bath 1000 sq built in 1951. My question is are windows a good initial investment or should I wait since they will be 4,000$ from window world. They are the original windows.

[Matthew Olszak]

I respectfully disagree with those who say tenants are taking into account the inefficiencies in their home in respect to their monthly budget. You all must have more educated and more luxurious rentals than I have had and have lived in in the past.

What I've seen from renters is this: Their rent is 750, bills are 250, so they're paying 1000/mo. Friend is paying 900 everything included. They move but then 8 months latter another friend says they pay 700/mo, without mentioning bills. They say wtf, I'm paying 300/mo more, move again, and the cycle continues. Sooo many renters DON'T understand how window quality, insulation, doors, furnace efficiency, and general construction affect their monthly bill. They just compare to the overall cost of the market at that moment.

I remember back to my renting days, and I was the same. The utilities were a fact of life, I had no clue about efficiency percentages and thought it was what it was. If I felt a cold draft from a window, I covered it with the plastic film kit in the winter. By the end of winter, I'd be upset at how big my gas bill was, and talking with others about their rents I'd move. And the cycle would repeat.

Last year, when I renovated one of my units, I had to pull the subfloor and most of the drywall on exterior walls, and so I insulated well. Not one potential tenant understood what the heck I said when I described these benefits, they just shook their head in agreement that it was good because that's what I said was good. 

On the flip side, every tenant hates changing light bulbs. I changed all the lights to permanent LEDs, and that DID get a hearty response of approval - you'll never have to change lightbulbs here for 10+ years! At least in my area/income level, the $2 lightbulb is an optional expense and annoyance, the $200 gas bill in winter is just life. 

I'd say no, if its a rental and you can rent it as-is, what value do new windows add to your rental? Can you actually justify a higher rent with comps in the market? Does it make your unit look trashy and therefore on a different comp-level? Will tenants notice or do you have to explain why its important and try to convince?

@Mitch Atkinsundefined