When managing a rental property in Florida, one common question landlords face is whether to include a dishwasher and garbage disposal. These amenities can add convenience and appeal to your rental, but they also come with potential maintenance headaches and costs. In this article, we’ll dive deep into the pros and cons of keeping a dishwasher and garbage disposal in your rental property, and when it might make sense to hold off on adding them.
The Case for Including a Dishwasher
Pros:
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Tenant Appeal: Many tenants see a dishwasher as a must-have, particularly in family-oriented or higher-end rentals.
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Higher Rent Potential: Offering modern amenities can allow you to charge a bit more rent.
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Quicker Occupancy: With a dishwasher in place, your property might rent faster compared to others without it.
Cons:
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Maintenance Costs: While dishwashers aren’t usually high-maintenance, when they break, you’ll need to fix or replace them.
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Initial Investment: Installing a dishwasher, especially if the kitchen isn’t already set up for it, can be costly.
When to Include It:
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If competing rentals in your area all have dishwashers, it might be necessary to stay competitive.
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If you’re targeting long-term tenants or higher-end markets, a dishwasher could be a worthwhile investment.
The Pros and Cons of a Garbage Disposal
Pros:
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Convenience Factor: Tenants may appreciate the ease of disposing of food waste.
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Perceived Value: Like a dishwasher, a garbage disposal can add a touch of modern convenience.
Cons:
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High Maintenance Risk: Garbage disposals are often misused, leading to clogs and expensive plumbing repairs.
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Replacement Costs: Garbage disposals don’t last forever, and they can be costly to replace if damaged.
When to Include It:
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If the majority of your competitors offer garbage disposals, or if you are in a luxury rental market.
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If you are looking to increase rent or tenant satisfaction, but only if the added income outweighs potential maintenance costs.
Cost Analysis: Dishwasher and Garbage Disposal
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Dishwasher Costs: A new dishwasher can cost between $400 and $1,000, plus installation fees. Repairs typically run between $100 and $300, depending on the issue.
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Garbage Disposal Costs: Installing a garbage disposal costs $150 to $400, while repairs or unclogging can set you back $100 to $200 each time.
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Potential Maintenance: Regular maintenance can help extend the life of these appliances, but misuse by tenants remains a risk.
Maintenance Tips for Landlords
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Dishwashers: Provide tenants with a simple guide on proper use. Suggest using dishwasher-safe items only, scraping plates before loading, and avoiding overloading.
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Garbage Disposals: If you decide to keep one, educate tenants on what not to put in it (e.g., grease, fibrous vegetables, coffee grounds) and consider installing a reset button to avoid unnecessary calls.
A Strategic Approach: Add Later if Needed
If your current rental market doesn’t demand these amenities, it may be wise to hold off. Keeping your initial investment lower can help maximize your cash flow. You can always add a dishwasher or garbage disposal later if the competition heats up and these amenities become necessary to stay competitive.
Key Takeaway: Be Strategic with Your Upgrades
Every investment in your rental property should be intentional and driven by market demand. Before investing in a dishwasher or garbage disposal, consider what similar rentals offer, your target tenant’s expectations, and how these amenities affect your bottom line.
My Expert Advice
From my experience managing hundreds of rental properties, my advice is clear: Don’t add a dishwasher or garbage disposal unless competing with similar rentals prevents you from collecting the rent you need. You can always add them later if necessary. Additionally, if the property you are buying requires both of these amenities, you are probably not buying at the high end of the low end most of the time, and the property is likely cash flowing less.
The best way to know if your property is below the rental average for an area is to compare it to the average rents:
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Studio Apartments: Around $1,540 per month.
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One-Bedroom Apartments: Typically $1,700 per month.
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Two-Bedroom Apartments: Average $1,960 per month.
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Three-Bedroom Apartments: Generally about $2,400 per month.
If your rental is significantly below these averages, the property is already at a discount, meaning it is more likely in a lower-income range. In this scenario, adding higher-end amenities like dishwashers and garbage disposals may not provide a good return on investment.
Keeping an eye on the market and being flexible with your approach ensures you get the best return on your investment while minimizing potential headaches.
Written by CEO of Graystone & companies & Coach of the Property Profit Academy Let me teach you how at propertyprofitacademy.com
