What Appliances should I provide?
A well-appointed property will always be more appealing than one that isn’t. In a market that is Tenant driven, competition to rent out your property can be fierce, and you need to do whatever you can to compete with other properties in the area. A property without a dishwasher is not going to be as attractive as one that does. Air-conditioning or heating can also be high on the list of a Tenant’s “must-haves”.
Depending on the type of property that you are renting out, and the type of Tenant that you are trying to attract, you could also give some consideration to supplying select white goods. For instance, if you are renting out an inner-city apartment it may be worth considering adding in a refrigerator, microwave, washing machine and dryer. Including a refrigerator and washer/dryer are also a good idea if the property has a confined space for them to fit into.
But what are the advantages and disadvantages of supplying these items?
Pros
- You will attract Tenants who are possibly prepared to pay a premium rent for not having to go out and purchase appliances themselves
- You will save on the wear and tear of moving these appliances in and out of the property after each Tenancy
- You may be able to get a tax advantage for maintenance of these products (check with the ATO and your Accountant)
- Your property will be more attractive to short-term renters
Cons
- If you supply the appliance, you are generally responsible for the maintenance of this and this can add to your costs
- Modern appliances don’t have the lifespan that they used to, and you can expect to have to replace things like washing machines, dryers and fridges every 8 or so years
- These inclusions may add a cost to your Landlord insurance premiums
Given that Landlords have an obligation to provide a safe environment for their Tenants it would also be wise to have the included appliances tested and tagged by a qualified electrician. This would also incur additional cost.
There are some companies that specialise in the rental of white goods and this is one way to negate the issue of repairs. If the appliance breaks down, rental companies will generally replace with another one at short notice. Appliance rental fees could be included in the rent so that your expenses are offset. It is also worth looking at offering to include these items as an option for the Tenant. The fee of the rental of these appliances can be added to the rent depending on what they opt to have you provided. For example: The property could rent out at $350 per week as is or at $380 per week if a fridge, washing machine and dryer are included.
Speak to your Property Manager about whether your property would benefit from including appliances and do your sums before making any decision. One word of caution though – it makes far better commercial sense to buy new goods with a warranty that second-hand goods that could fail at any moment and need replacing.
