Providing a dishwasher?

Discussion in 'Property Management' started by Jimmeh, 25th Jan, 2017.

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  1. Jimmeh

    Jimmeh Active Member

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    Would you provide a dishwasher for a 3+ bedroom home?. A decent Bosch one seems to be $700+. I'm not sure I can get enough of a rent increase, or secure better tenants with one.

    I'm concerned that I'd have to repair it if anything goes wrong.
     
  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Depends on the area a bit. In most of the areas we service, dishwasher makes a difference.

    I've found dishlex ones never need repairing and are quite cheap.
     
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  3. wylie

    wylie Moderator Staff Member

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    I agree with D.T. insofar as it will depend on what is expected in the area.

    At times it comes down to adding between tenants rather than trying to ask the sitting tenant to cough up extra rent. Some will, and some won't want to.

    Adding between tenants means you just ask a little more when you re-rent it.

    It can also mean finding tenants quicker than if the IP doesn't have one. These days they are not a luxury, but fairly well expected in most places I would say.

    We also tend to use Dishlex for the same reason... cheap and reliable.
     
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  4. Lemmy a fiver

    Lemmy a fiver Well-Known Member

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    How desperate are you in TODAY'S market?
    Its a market driven decision.
    During the last recession I was up against investors giving tenants free dishwashers, washing machines, clothes driers & refrigerators (& often all of the above to sign a lease)
    I thought it ridiculous at the time, yet lost tenants to what others were willing to offer.
     
  5. 733

    733 Well-Known Member

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    Generally it is an expectation for tenants to have a dishwasher - it is certainly an item that is noted by applicants when undertaking inspections. We have dishwashers in our IPs although I no longer purchase Miele rather a mid range dishwasher on appliances online which is working out well so far.
     
  6. Chrispy

    Chrispy Well-Known Member

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    I supply a Dishlex dishwasher in the larger properties where families are the usual tenants but not in the villa units, where singles or couples are tenants, as have supplied them previously and found they were not used
     
  7. WestOz

    WestOz Well-Known Member

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  8. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    As with any investment decision, it's either about risk vs. reward, or return on capital.

    Will installing a dishwasher provide a return on capital? It's a also a risk vs. reward decision. Assume tenants who are viewing your property are also viewing properties with dishwashers installed and your property takes two weeks longer to rent because of this. At say, $400 per week rent, you're now $800 behind which would have paid for a dishwasher.

    Not only that, but you can also depreciate the dishwasher meaning you'll get some tax back for it and more importantly, next time it's available for rent it will, in theory, rent a little quicker and you won't lose that $800 again. Of course, you can't directly quantify those "two weeks lost rent" which is where your PM should provide guidance on the necessity of a dishwasher. On the other side of the coin, you now have something else that might require maintenance or replacement in the future (which in reality the tax return from depreciation is supposed to be covering).

    For me personally, I always look at what I can do to improve my overall return which on the cash flow side of a buy and hold strategy often translates into reducing vacancy and maximising rent whilst looking at my available tax benefits.

    Another example is an air conditioner. Owners often balk when tenants ask for air conditioners but it's one of the best investments you can make! An air conditioner might cost $1500 installed but you up your rent by a modest $10 per week (on top of what was the property's market rent without an air conditioner). This is approximately $520 per year meaning the unit is paid for directly within three years, you have depreciated it in the meantime, it's probably reduced vacancy and will be more attractive in future years if/when it becomes vacant. Not only that, but air conditioners add to the value of the property! All in all, a very cheap and solid improvement but all investors see is a $1500 up front cost....

    As a side note, Appliances Online provide a great service for IP owners and I use them for all my appliance installations unless the electrician etc. has a great deal on hand. I also have dishwashers in all my properties ;)

    Hope that helps.

    Andrew :)
     
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  9. Angel

    Angel Well-Known Member

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    $700 is the price of a laptop, iPad or new phone. It is also the cost of a new pair of glasses, a visit to the dentist or a gym membership. What is the problem? My ten year old Bosch (in PPOR) is working fine, never had an issue with it.
     
  10. Zepth

    Zepth Well-Known Member

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    When we were renting we wouldn't even look at a house without a dishwasher. I am sure we aren't the only ones like that either.

    So even if it doesn't bring in a higher weekly rent, you are limiting your pool of potential tenants every vacancy if you don't have one.

    The more expensive the weekly rent the more likely it is to be expected by your tenants also
     
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