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Attract high-quality residents with new appliances

Real estate investing

‍An investment in appliances for a rental property can result in big savings, increase the property’s resale value and serve as a tax deduction. Installing the right appliances means maintenance costs will be lower when your appliances break down. 

New, low-cost appliances attract high-quality tenants and make them happy, ultimately resulting in longer-term lease signings. Furthermore, low-cost appliances are fully tax-deductible under Section 179 of the Internal Revenue Code.

Energy efficiency is key. “One of the most important features any new appliance should offer is energy efficiency,” explains Billy Wardlaw, Mynd’s senior operations manager and head of its construction services division.

Owners should look for appliances with the Energy Star label.

“Environmentally friendly appliances not only appeal to residents because they save them money, they will save owners money over the long term,” he says. 

Wardlaw favors General Electric (GE) appliances for their “extreme durability” and because they offer property owners an exceptional warranty, since GE is a Mynd preferred vendor. Instead of the one-year warranty that comes standard with most appliances, GE offers a two-year warranty to all Mynd owners. So Mynd owners can save anywhere from 5 to 20 percent if they buy new GE appliances and install them at their property. 

Topping Wardlaw’s list of appliances that represent a good investment are:

  • gas stove
  • dishwasher
  • garbage disposal
  • refrigerator
  • washer and dryer
  • low-flow toilet
  • low-wattage heater
  • energy-efficient light fixtures
  • energy-efficient faucets  
  • energy-efficient valves

10 out of 10 chefs prefer a gas stove

  1. When your power goes out, your stove also goes out if it’s electric. A gas-powered stove doesn’t stop working in the event of a power outage. 

  2. Foodies and chefs typically prefer a gas stove, since the oven and burners heat up much faster and more evenly than their electric counterparts. 

  3. Cleaning is a breeze: Gas cooktops are much easier to clean and maintain than electric ones.

Is it any wonder why chefs and renters prefer gas stoves? (Credit: Getty Images)

Is it any wonder why chefs and renters prefer gas stoves? (Credit: Getty Images)

A dishwasher makes life easier 

  1. Dishwasher make post-meal clean-up easy. When residents keep a property clean and tidy, they generally save the owner money in the form of lower upkeep and maintenance costs. 

  2. Installing a dishwasher sends a signal that the owner cares, which makes residents feel valued. Happy residents tend to stay put and lease a home for a longer period of time than disgruntled tenants. 

A garbage disposal does more than you think

  1. Whether it’s a ¼ or ½ HP (horsepower) garbage disposal, this small, motorized machine under the sink efficiently disposes of leftover so that less waste ends up in the local landfill. 

  2. Priced between $200 and $300, a garbage disposal additionally functions to keep pipes – especially the p-trap – clean.

  3. Wardlaw reminds tenants to refrain from throwing large amounts of food in the garbage disposal, especially if they have a ¼ HP appliance or smaller, as it could damage the blades or cause the disposal to break down. 

Buying new, low-cost appliances can attract quality renters and increase property value, and serves as an effective tax deduction. (Credit: Getty Images)

Buying new, low-cost appliances can attract quality renters and increase property value, and serves as an effective tax deduction. (Credit: Getty Images)

A new refrigerator boosts returns 

  1. Even if it’s not a state-of-the-art appliance, a new, standard-model refrigerator increases ROI over the long term and cuts down on the number of service requests. 

  2. A stainless-steel refrigerator adds even greater value to a rental asset and is a popular option among many renters and owners alike.  

  3. French doors add to a refrigerator’s functionality as well as its aesthetic appeal. 

  4. Even a traditional-looking, white refrigerator will be appreciated by residents if it’s sparkling clean and brand new.

A washer/dryer increases a rental’s value 

  1. According to the National Apartment Association (NAA), providing an in-unit washer and dryer in a rental boosts the home’s value by 15 percent. 

  2. This appliance sends the message that the owner cares about her tenants. As a tenant, taking laundry to a laundromat or arranging for a laundry service is inconvenient and time-consuming, and can become expensive, Wardlaw says. 

Flush your worries down the drain with a low-flow toilet 

  1. A low-flow toilet conserves water, which is a must-have feature in drought-prone regions of the United States such as California or the Southwest. 

  2. A low-flow toilet saves tenants on their water bill each month.

  3. An environmentally friendly appliance, a low-flow toilet appeals to conscientious and respectful tenants, who tend to be responsible and good caretakers of an owner's investment. 

Save energy with a low-wattage space heater 

  1. A traditional space heater consumes inordinate amounts of energy, while a lower-wattage alternative may use only between 50 to 750 watts, slashing residents’ electricity bill.

  2. A lower-wattage heater keeps tenants just as warm as a high-watt option, especially in smaller spaces like a rental home or apartment, according to Wardlaw.

Conserve water with energy-efficient faucets, shower heads and valves 

  1. Much like the low-flow toilet, these energy-efficient kitchen and bathroom fixtures are a necessity in regions prone to droughts and water shortages. 

  2. Energy-efficient water fixtures in the bathroom can significantly reduce residents' water bill each month.

  3. These environmentally friendly fixtures appeal to conscientious, respectful tenants who will take good care of the owner's investment. And a well-maintained asset generates a higher resale value. 

  4. A shower head is a very inexpensive appliance that still provides residents with plenty of water when showering, says Wardlaw. Given the high quality of today’s manufacturing processes, residents can’t tell the difference between an energy efficient shower head and a traditional one.

Low-cost appliances are 100 percent tax deductible 

Not only is buying new appliances a great way to attract quality tenants, it also serves as an effective tax deduction. Section 179 of the Internal Revenue Code allows taxpayers to “deduct the cost of certain property as an expense when the property is placed in service.” The maximum Section 179 expense deduction totals $1 million, while the phase-out limit is $2.5 million, indexed for inflation for tax years beginning after 2018.

Section 179 allows landlords to deduct the cost of personal property items they purchase for use inside rental units, including appliances, carpets, hardwood floors, drapes and blinds.

The next time a resident moves out of their property, owners should consider buying new appliances to increase the property's resale value, limit tax liability and to show they care about the people living inside their property.

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