How much does a washer and dryer add to rent? It is worth the extra maintenance cost? This is a question that many landlords have, and the answer can vary depending on the property type, the current market conditions, and the location. In this blog post, I will explain how adding a washer and dryer can impact your rental rates. I will also, discuss how you can increase rental income and minimize maintenance costs.
To answer the question of how much does a washer and dryer add to rent, I did what a property appraiser would do when deciding the value of an amenity. I compared the rent of the similar properties (3BA, 2BA, around 1200 sq. ft) with a washer and dryer to the properties without a washer and dryer. Theoretically, the difference is the value that the washer and dryer add to the rent.
I compared rentals in several major rental markets: Atlanta, Tampa, Austin, Denver, Las Vegas, and Phoenix. I looked at A and B types of properties only.
Landlords with C properties rarely offer washers and dryers. If they do, they are usually rented to the tenants.
Here is what I found in each city:
I looked at one zip code, 3BR, 2BA, 1200 sq. ft. The homes with washers and dryers were rented at $473 more on average. It’s important to note that even though I picked homes that are similar, it’s hard to determine if the difference in rent is entirely due to the presence or lack of a washer and dryer. My educated guess is that competition in this market would demand these amenities, so if you don’t have them, you’ll likely need to offer a discount.
In Tampa Bay, I found a similar result. The average rent for a home with washers and dryers was $275 more per month than one without.
However, from the 22 homes I compared, only two were owned and advertised by a landlord or a property manager, the rest were owned by corporate landlords like Progress Residential, Tricon Residential, and American Homes 4 Rent.
None of these corporate landlords offer a washer and dryer as part of the rent price. They usually offer them as an upgrade for an additional fee.
In Austin, there was a wider range of rent prices for homes with and without washers and dryers. The average rent for a home with a washer and dryer was $100 more per month than one without. The majority of homes had a washer and dryer.
The most interesting part of my research in Austin was that all of the homes without a washer and dryer were managed by property managers. Also, the homes are mostly listed by landlords and property managers. The corporate landlords don’t have a huge presence here.
In Denver, the average rent for a home with a washer and dryer was $95 more per month than one without. There were more properties offered without a washer and dryer than with one. Of course, all these homes have a hook-up for a washer and dryer, they are just not included in the rent.
In Las Vegas, I found that there is no difference in rent price between homes with a washer and dryer and those without. This is most likely because most of the rentals are owned by corporate landlords like Invitation Homes, Tricon Residential and Progress Residential.
In Phoenix, the average rent for a home with a washer and dryer was the same per month as one without. There was an equal number of homes with and without washers and dryers. Most of the homes were listed by property managers and landlords.
To sum it up, in all of the cities I researched, the average rent for a home with a washer and dryer was more than one without. The amount that the rent is increased varies from market to market and even within each city.
If you’re considering adding a washer and dryer to your rental property, it’s important to do your research and find out what’s customary in your area.
Also, another curious trend I noticed was that in most cities, most landlords who managed their own properties offered a washer and dryer as part of the rent price.
Corporate landlords and most property management listings did not include washers and dryers in the rent, but they do offer them as an upgrade for an additional fee.
Maintaining a washer and dryer is not cheap, mostly because tenants don’t use them properly. After garbage disposals, maintenance calls for W/D are the most common so it’s no wonder that most corporate landlords and property managers choose not to offer them but rent them to the tenant for an additional fee. See our Washer and Dryer Rental Agreement
Some landlords choose to include the washer and dryer in the rent AS-IS, offer them as a convenience but not repair them if they break. In practice, this does not work. If the washer belongs to the property, tenants will call you no matter what you told them.
I like the idea of renting the washer and dryer better. The typical rent is $50 per month. The landlord has control of how and most importantly who installs the appliances, preventing potential flooding and fires. The monthly fee can help with maintenance and dryer vent cleaning.
It’s important to remember that this is an amenity that can entice new tenants, but it’s not a guarantee. In the end, your decision should be based on market conditions and what’s customary in your location.