No landlord (or roommate…or wife) likes a stack of dirty, food encrusted plates and cookware piling up in the sink or on valuable counter space. However, not every dwelling includes a dishwasher rack in which to stash your stacks.
Should an investor consider adding a dishwasher in their rental property? We try to put dishwashers in every unit, whenever possible.
The best time to add the appliance is when undertaking a reno on the kitchen. However, if the space is there to accommodate the machine already, it may be worth considering (regardless of doing a renovation or not.)
The Case:
Solid, entry level dishwashers cost around $500, and they often include a 5 year warranty (If it doesn’t, ASK FOR IT!) It will also cost around $50 to deliver and hook it up.
If you consider the money you’ve saved by not purchasing the $200 cabinets (where the dishwasher will go), then your net cost is only $350.
A dishwasher in return has perceived and practical value to your tenants. Potentially, you can now charge $25 more per month simply by having it in the kitchen; this makes the payback period for your $350 investment only 14 months.
Even if the rental increase was only $10, then there would be a 35 month payback. However, remember that you also secured a 60 month warranty on your new machine.
The return is not the only benefit – no dirty dishes sitting in the sink or counter, lower chance for bugs and mice. Also your tenants will appreciate the ease and convenience afforded them – happy tenants, happy life.
Special mention to DREI member, master investor Tom Sullivan for sparking this insight