Part of running a successful rental business includes providing tenants with up-to-date appliances and valuable amenities. Not only does this give tenants a better experience, but it also increases the value of your property. Unfortunately, however, most of them come with a hefty cost. That said, installing modern, energy-saving rental property appliances is a great way to secure quality tenants.
Considerations Before Investing in Rental Property Appliances
Before taking the plunge of buying new and expensive appliances, landlords should take a step back and determine what their rental property needs. Here are a few questions and considerations to keep in mind before you invest in rental property appliances.
- What Rental Property Appliances Do Tenants Want?
- What Will Give You the Best Value?
- What’s Going to Save Energy?
- Do You Qualify for Added Tax Incentives?
What Rental Property Appliances Do Tenants Want?
What you consider a necessity in your home may not always match what tenants want in a rental home. So, to figure out what appliances tenants genuinely want and need, you need to look at both value and appeal. To accomplish this, do some research on current rental trends, and look at what other landlords provide in their rental homes.
What Will Give You the Best Value?
One significant concern when it comes to investing in appliances is finding amenities that give you the best value. After all, appliances are a considerable expense for landlords, so it’s crucial to choose them carefully.
If your rental home is located in a mid-range neighborhood, it’s probably not worth your while to add luxury appliances. On the other hand, if you own a rental in a high-end area, you will likely find people willing to pay for nicer appliances.
What’s Going to Save Energy?
Purchasing energy-saving rental property appliances is great if you want to save money and the environment. That said, you’ve likely seen many appliances with the “Energy Star” logo. If you didn’t know, Energy Star is part of a program run by the US Environmental Protection Agency, making an effort to provide energy-saving appliances.
Do You Qualify for Added Tax Incentives?
Upgrading your rental property appliances adds value to your property and may even qualify for tax incentives. As stated under Section 179 of the U.S. Internal Revenue Code, landlords can deduct the cost of appliances or other equipment from their taxes. That said, landlords must meet the requirements and qualifications for this tax deduction.
To learn more about what you can deduct from your taxes this year, check out our blog!
What Rental Property Appliances Should Landlords Provide?
If you’re still unsure what appliances you need to install or upgrade in your rental home, look no further. We’ve compiled a list of the most common rental property appliances tenants look for in a home. Keep reading as we go over why each of these is important or necessary for your rental.
- Washer and Dryer
A refrigerator in a rental home is an absolute necessity. While standard white fridges work just fine, your tenants may want something that looks a little more aesthetically pleasing. So, you have a few options. You could:
- Opt for a classic, white refrigerator
- Purchase a new stainless steel refrigerator
- Buy a faux stainless steel refrigerator
- Apply stainless steel contact paper
All of these options work just fine for a rental property. But, landlords should do their research on tenant expectations in the area and make an informed decision accordingly.
The stove you choose to install will likely depend on whether your rental property has an electric outlet or a gas line hookup. Let’s take a look at some pros and cons of each choice:
- Risk of fire or electrocution if installed wrong
- Initially less expensive to install
- Cooks more evenly than gas stoves
- It needs the right voltage power to work properly
- More expensive initially, but saves money over time
- Risk of carbon monoxide poisoning
- Better overall temperature control
Washer and Dryer
Although a washer and drier aren’t always necessary in a rental home, they are a huge selling point for most tenants. Additionally, the convenience that they provide allows landlords to increase the monthly rent by as much as 20%, depending on the area.
Before installing a washer and dryer, consider the types of hookups you have in your home. They could be either gas or electric, so you’ll want to purchase these appliances accordingly.
Similarly, be mindful of how much space they will take up. If your rental home is small, it’s wise to opt for a space-saving or combination unit. However, if you have a separate space dedicated for laundry, you could install larger capacity units.
Microwaves are relatively inexpensive and straightforward to install in a rental home. That said, they are one of the most common rental property appliances. While most people own a microwave already, landlords can maximize tax deductions by adding this simple amenity.
Since most people have a smaller, easy-to-move microwave, landlords can provide a better experience for tenants by installing a higher-end built-in microwave.
Dishwashers are a great appliance to add to your rental property because it’s something that almost all tenants desire. That said, choose your dishwasher carefully according to what will fit in your rental property.
If you have a smaller home or apartment, it’s best to choose a compact dishwasher to save space. However, if you have more space or multiple tenants in one property, a regular-sized dishwasher should suffice. With that, to help you or your tenants save money on utilities, look for an Energy Star symbol on your dishwasher.
What Happens if Tenants Damage Your Appliances?
One downside to investing in new, modern appliances is that they can get damaged by tenants quite easily. For example, misuse of appliances can take a major toll on their lifespan. So, how can you prevent damages to your rental property appliances? Here are a few tips to keep in mind:
- Show tenants how to properly use and care for all the appliances in the home.
- Include maintenance protocols or fees associated with damages within your rental lease agreement.
- Conduct seasonal maintenance to regularly inspect appliances and ensure they are in working order.
Unfortunately, not everyone is going to treat your rental property appliances with the same respect you’d treat your own. However, coming up with protocols and procedures for broken or misused appliances can help you save costs in damage later on.
Need Help Maintaining Your Rental Property?
Let’s face it. Nobody wants to deal with pesky maintenance issues within a rental home—especially landlords. So, how can you skip the stress while saving precious time and money? Consider hiring a property management team!
Bay Property Management Group provides top-notch leasing services while helping you receive the maximum return on your investment. Whether you need help with tenant screening, collecting rent payments, filing evictions, or keeping up with maintenance, we’ve got you covered.
If you want to learn more about our comprehensive property management services, contact us today! We proudly offer rental property management in Washington DC, Baltimore, Philadelphia, Northern Virginia, and surrounding counties.