In rental properties, appliances aren’t just conveniences—they’re opportunities to increase revenue, boost resident satisfaction, and reduce long-term costs. Providing the right appliances can significantly impact your investment’s profitability.
For example, according to our analysis, adding essential items like washers and dryers can increase monthly rent by $50 to $100. This small investment provides immediate returns and is a feature that residents value highly, especially those looking to avoid the hassle of laundromats.
Beyond revenue, the appliances you provide directly affect resident satisfaction. Residents in well-equipped units are more likely to renew their leases, reducing turnover and vacancy periods. Fewer turnovers mean lower costs for advertising, cleaning, and preparing the unit for new residents.
Quality appliances for rental property also lead to lower maintenance costs. Investing in durable, reliable models minimizes repair calls and reduces the likelihood of frequent breakdowns. This saves landlords and residents from frustration and unexpected expenses, ensuring a smoother rental experience and fewer long-term costs.
Finally, modern and reliable appliances can enhance the overall value of your property. Prospective residents and buyers view properties with well-maintained appliances as being of higher quality and are often willing to pay more rent or purchase price. In competitive rental markets, this can make all the difference.
|
Key Takeaways:
|
In this article, we’ll explore the essential appliances to include in your rental property, from necessities to high-end upgrades, and how these decisions can affect resident satisfaction, rental income, and overall profitability.
You’ll learn how to choose appliances that align with your property’s target audience, understand tax benefits associated with appliance purchases, and decide when to replace or repair appliances. By the end, you’ll be equipped to make smart decisions that improve your property’s appeal, reduce turnover, and maximize investment returns.
Check out this expansive resource if you’re interested in other means of increasing your rental income.
Appliances Found in Rental Properties Across the U.S.
Equipping your rental property with amenities for rental properties like proper appliances not only meets resident expectations but can also increase your rental income and reduce turnover. Residents expect some appliances. For example, it’s very rare for residents to have their own refrigerators because they’re heavy and difficult to carry around with them.
Standard Appliances in Rental Units
In most U.S. rental properties, residents expect certain basic appliances:
- Refrigerator
- Oven/Stovetop
- Microwave (in many regions)
Failing to provide these essentials can make your property less attractive to potential renters, especially in competitive markets. Residents today often prefer modern, energy-efficient models, which can also lower utility bills, benefiting both residents and landlords.
Appliance Trends in Different Types of Rentals
The type of rental property you own will dictate both the range of appliances and the expectations of your residents. You can create a more appealing, market-competitive rental by aligning appliance offerings with the type of property and resident demographics.
- Apartments: Apartments often come with the bare essentials, but adding value with energy-efficient appliances or modern upgrades can set your property apart. For example, newer buildings may offer stainless steel appliances or smart features like touch-activated stovetops, which appeal to higher-end residents.
- Single-Family Homes: Residents in single-family homes often expect more comprehensive appliance packages. Providing washers, dryers, dishwashers, and modern kitchen appliances can make your property much more attractive, especially for large households.
- Short-Term Rentals (Airbnb/VRBO): Short-term rental guests seek convenience and comfort. Properties equipped with fully functional kitchens complete with dishwashers, coffee makers, and microwaves typically receive better reviews and attract repeat bookings. Providing in-unit laundry facilities can also be a key selling point, especially for longer stays.
Optional Appliances That Add Value
In addition to the standard appliances for rental property, certain upgrades can significantly enhance the appeal of your property:
- Dishwashers: While dishwashers may not be standard in smaller units, adding one can make your property much more attractive, especially in higher-end rentals. For single-family homes, a dishwasher is often seen as essential.
- Microwaves: A built-in microwave can be an appreciated upgrade, especially in smaller kitchens with limited counter space. Offering modern, space-saving appliances can be an easy way to attract residents.
- Washer/Dryer Units: An in-unit washer and dryer is one of the biggest value-added appliances. Residents will often pay higher rent for the convenience, which can be particularly beneficial in apartment buildings with limited laundromat alternatives
Providing these optional appliances can set your property apart from others on the market, helping you attract and retain higher-quality residents and justifying increased rent.
It’s important to note that in most states, any appliances provided by the landlord become their responsibility to maintain, repair, or replace. While adding these upgrades can attract higher-quality residents, landlords should also consider the potential maintenance costs, including risks like water damage from dishwashers and washers.
Tax Benefits of Providing Appliances in Rental Properties
Equipping rental properties with appliances offers more than resident satisfaction—it can also provide valuable tax savings. Real estate investors can deduct the total cost of appliances immediately or depreciate them over time. Understanding how and when to apply these deductions can improve cash flow and minimize taxable income.
Are Appliances for Rental Property Tax Deductible?
Yes, appliances are tax-deductible, but the method of deduction depends on their cost and expected lifespan:
- Expensing Appliances (for costs under $5,000): Appliances that cost less than $5,000 can be expensed in the year of purchase. This means you deduct the total cost upfront, reducing your taxable income for that year. Expensing is often the preferred method for small appliances, as it provides immediate tax relief and is particularly advantageous if you have carry-forward losses.
- Section 179 Immediate Deduction: Under Section 179 of the tax code, you can deduct the total cost of qualifying appliances and other assets in the year they are purchased. This option is useful for larger appliance purchases, as long as your total capital expenditures remain below $2.5 million annually. Section 179 allows you to accelerate deductions and improve your short-term cash flow.
- Bonus Depreciation: Bonus depreciation permits you to deduct 100% of the cost of appliances and other improvements in the year they are placed into service. This is particularly useful if you’re purchasing new or used appliances, and it can apply even if the cost exceeds $5,000. Bonus depreciation phases down in the coming years, so investors may want to take advantage of this while it’s still available.
Appliance Depreciation: A Deeper Look
If expensing isn’t the best option or doesn’t apply to larger purchases, appliance depreciation offers another way to reduce your tax liability.
- The 5-Year Depreciation Rule: Appliances such as refrigerators, dishwashers, and stoves are subject to the IRS’s 5-year depreciation schedule. This means that instead of deducting the entire cost upfront, you spread the deduction over five years, with a portion being deducted each year.
- Depreciation Calculation (MACRS): The IRS allows depreciation through the Modified Accelerated Cost Recovery System (MACRS), which accelerates the deduction in the earlier years of ownership. Typically, you can deduct around 20% of the appliance’s value in the first year, with slightly decreasing percentages in subsequent years. This can provide an early boost to your cash flow.
Maximizing Tax Savings with a Strategic Approach
Taking advantage of these tax benefits requires thoughtful planning. Here are actionable strategies to optimize your deductions:
- Expense Appliances Where Possible: Expensing is usually the better route if the appliance costs less than $5,000. It offers an immediate tax break and avoids the complications of depreciation recapture when you sell the property.
- Leverage Bonus Depreciation for Larger Purchases: For appliances that exceed the $5,000 threshold, or if you’re making multiple large purchases, bonus depreciation allows you to deduct a large percentage upfront. This is especially useful if you need immediate tax relief.
- Bundle Appliance Purchases for Greater Impact: Consider purchasing multiple appliances within the same tax year to maximize the benefits of Section 179 or bonus depreciation. Grouping purchases can lead to significant tax savings in a single year.
- Coordinate with Property Upgrades: If you’re already planning significant property upgrades, including appliance purchases in the same year is advantageous. This allows you to leverage deductions for both improvements and appliances.
- Carefully Track Appliance Costs: Keeping meticulous records of appliance purchases, including the date, cost, and installation details, is essential for maximizing deductions and ensuring compliance during audits.
- Consider Energy-Efficient Appliances: While not a federal deduction, energy-efficient appliances can qualify for state or local tax credits, and utility rebates. These incentives reduce the overall cost of appliances and increase property appeal while saving on energy costs.
Depreciation on Appliances for Rental Property
While immediate tax deductions through expensing are attractive, it’s essential to plan for the long term:
- Depreciation Recapture: When you sell the rental property, the IRS may require you to recapture the depreciation taken on appliances. The amount recaptured is typically taxed at 25%, so careful planning is necessary to avoid an unexpected tax hit.
- 1031 Exchange: If you plan to sell your rental property and reinvest in another, you can use a 1031 exchange to defer capital gains and depreciation recapture taxes. This strategy allows you to reinvest the proceeds into a new property without incurring immediate tax liabilities, offering an opportunity to continue building your portfolio.
| Key Takeaway: Expensing appliances under $5,000 provides the simplest and most immediate tax benefit. For larger purchases, bonus depreciation and Section 179 deductions offer opportunities to reduce taxable income quickly. Careful tracking, strategic planning, and considering long-term tax consequences, such as depreciation recapture, are essential for optimizing your tax savings. |
For more on tax deductions that landlords can claim, check out our complete resource.
Balancing Cost, Quality, and Resident Expectations
Choosing the right appliances for your rental property involves balancing cost, quality, and resident expectations. Making informed decisions about these factors helps minimize expenses while maximizing resident retention and long-term returns.
Understanding Your Resident Demographics and Needs
Tailoring your appliance choices based on resident demographics is key to aligning expectations and avoiding overspending.
- Families or Long-Term Renters: If your rental attracts families or long-term residents, prioritize durable, high-quality appliances that can handle daily use. A full suite of appliances, including a dishwasher and in-unit washer/dryer, can reduce vacancy periods and justify higher rent. Energy-efficient models may appeal to residents looking to save on utilities, making your property even more attractive.
- Young Professionals or Single Residents: Consider space-saving appliances like compact washer/dryer combos for urban apartments aimed at young professionals. This demographic values convenience, so offering high-efficiency appliances with modern features enhances appeal without requiring top-of-the-line models.
- Short-Term or Vacation Rentals: In short-term rentals, focus on providing essential, reliable appliances. Since guest turnover is high, durability and ease of use should be the top priority. Energy-efficient and easy-to-maintain appliances can lower operating costs and improve guest satisfaction, leading to better reviews and repeat bookings.
Reviewing your resident demographics and matching appliance selections to their expectations ensures you meet resident needs while managing costs effectively.
When to Replace vs. Repair Appliances
Deciding whether to repair or replace appliances involves considering the cost and the appliance’s lifespan.
- Cost Threshold: A helpful guideline is the 50% rule—if a repair costs more than 50% of the price of a new appliance, replacing it is typically more cost-effective. For example, if repairing a refrigerator costs $600 and a new one is $1,000, opting for a replacement will save you money long-term.
- Energy Efficiency Upgrades: Even if repair costs are below 50%, outdated appliances lacking energy efficiency may still warrant replacement. Upgrading to newer models reduces utility costs and adds appeal to residents who value modern conveniences.
- Residents’ Experience: Frequent breakdowns can frustrate residents and lead to higher turnover. Proactively replacing aging appliances can prevent maintenance headaches and keep residents satisfied.
Tracking the maintenance history for each appliance can help you decide when replacement makes more financial sense than ongoing repairs.
If you’re planning on increasing your rent after purchasing new appliances, look at our guide on how to increase rent.
Best Practices for Appliance Maintenance and Longevity
Proactively maintaining appliances can extend their lifespan, reduce repair costs, and ensure they perform well for your residents.
- Invest in Durable Appliances: Rather than choosing the cheapest or most luxurious models, opt for mid-range appliances that balance cost, quality, and durability. These tend to last longer and offer better value over time.
- Standardize Appliance Brands and Models: If you manage multiple properties, standardizing appliance brands across units simplifies maintenance and repairs. Keeping replacement parts on hand for standardized models reduces downtime and makes servicing more efficient.
- Schedule Regular Inspections: Performing quarterly checks ensures appliances remain in good working order. Clean refrigerator coils, check dryer vents, and inspect seals to prevent minor issues from escalating into major repairs.
- Use Smart Appliances in Premium Units: In higher-end properties, consider installing smart appliances to attract tech-savvy residents. These appliances can notify residents (and you) of potential issues, reducing resident-reported maintenance calls and adding a modern touch.
- Provide Resident Education: Educating residents on proper appliance use, like not overloading washing machines or regularly cleaning oven racks, can prevent misuse and extend the appliance’s lifespan. Including these instructions in a welcome guide helps set expectations.
- Buy Appliances with Extended Warranties: For large, expensive appliances, purchasing extended warranties can prevent costly repairs down the road. Review the terms to ensure they cover essential maintenance and are suitable for a rental property environment.
- Document Appliance Condition Upon Move-In and Move-Out: Take photos of all appliances during resident move-ins and move-outs to track their condition over time. This documentation helps with any damage disputes and provides insights into when an appliance may need to be repaired or replaced.
- Charge a Premium for Upgraded Appliances: If you offer upgraded or energy-efficient appliances, consider charging a slight premium on rent. Residents willing to pay for premium features tend to stay longer and take better care of the appliances.
- Consider Leasing Appliances: For landlords with multiple units, leasing appliances can reduce upfront costs and shift repair responsibilities to the leasing company. This is particularly useful for large apartment complexes or properties with frequent resident turnover.
Adopting a proactive maintenance routine not only preserves the functionality of your appliances but also keeps repair costs predictable and manageable.
Lifespan of Different Appliances
Knowing the expected lifespan of each appliance helps you budget for replacements and avoid unexpected expenses. You can learn more about how long appliances can last here, from where we got our data.
| Appliance | Life Expectancy (Years) |
| Gas Stoves | 10 to 18 |
| Electric Stoves | 13 to 15 |
| Stove and Oven Hoods | 14 |
| Dryers (Electric and Gas) | 13 |
| Refrigerators | 14 |
| Garbage Disposals | 12 |
| Freezers | 10 to 20 |
| Washing Machines | 11 |
| Microwaves | 9 |
| Dishwashers | 9 |
Also, it’s important to note that these expectancy figures are estimates, and your appliances could keep running longer if treated with care.
Tracking the age of your appliances is necessary to plan for replacements and avoid unexpected breakdowns. Scheduling routine inspections also ensures you replace appliances promptly, keeping your rental property competitive.
What Appliances to Provide: A Strategic Approach
When deciding which appliances to provide in your rental property, it’s essential to consider the specific needs of your target audience, your budget, and how these choices will impact your property’s appeal, resident satisfaction, and long-term maintenance costs.
Here’s a guide to help you make informed decisions based on budget and property type:
What to Consider Before Purchasing Appliances
Before making appliance purchases, take a step back to evaluate the bigger picture:
- Who is your target audience?
Understanding your residents’ expectations will help you tailor your appliance selection. For example, a high-end rental property targeting professionals or families will have different appliance needs than a student rental or budget-friendly unit. - What is your budget?
Your appliance budget will determine whether you provide essential, mid-range, or premium appliances. Striking a balance between cost and resident expectations is key to maximizing return on investment (ROI) while managing upfront costs and future maintenance.
Here’s a general idea of how much you can spend depending on your budget. You can find out more in this Home Guide breakdown.
| Appliance | Basic Price Range | Average Price Range | High-End Price Range |
| Refrigerator | $200 – $600 | $600 – $2,300 | $2,300 – $5,000 |
| Chest Freezer | $190 – $350 | $350 – $800 | $800 – $2,200 |
| Upright Freezer | $160 – $450 | $450 – $1,100 | $1,100 – $2,900 |
| Stove / Range | $530 – $600 | $600 – $1,300 | $1,300 – $3,000 |
| Dishwasher | $400 – $800 | $800 – $1,200 | $1,200 – $3,000 |
| Microwave | $60 – $100 | $100 – $600 | $600 – $2,000 |
| Wall Oven | $460 – $1,100 | $1,100 – $3,400 | $3,400 – $5,400 |
| Washing Machine | $450 – $700 | $700 – $1,300 | $1,300 – $2,000 |
| Clothes Dryer | $400 – $800 | $800 – $1,200 | $1,200 – $2,300 |
Low Budget: Cost-Effective Appliances for Basic Resident Needs
For landlords operating on a low budget, providing reliable and affordable appliances for rental property is essential to meet resident needs without overspending. Here’s how you can do it wisely:
- Essential Appliances to Include: At a minimum, every rental should include a stove and refrigerator. These are non-negotiable appliances that residents expect, and going without them will likely reduce resident interest. Opt for energy-efficient models when possible, as they reduce utility costs for you and your residents.
- Where to Save: You can reduce costs by purchasing used or refurbished appliances. Many retailers offer certified pre-owned options with warranties, which can provide peace of mind without the total price tag. However, be mindful of quality—cheap, unreliable appliances may cost more in maintenance and repairs over time.
- Balancing Cost and Reliability: Don’t just buy the cheapest model available. Look for brands known for reliability at affordable price points. Sometimes investing more upfront for a durable appliance can save you in the long run, as frequent breakdowns lead to frustrated residents and costly repairs.
| Pros | Cons |
| Lower upfront costs, allowing you to remain within budget. | Used appliances may have shorter lifespans and require more frequent repairs. |
| Basic models are generally easier and cheaper to repair. | May lack modern features or energy efficiency, leading to higher utility bills or a less attractive rental unit. |
Medium Budget: Practical and Attractive Appliance Choices
If you have a medium budget, you can invest in appliances that balance performance, durability, and resident satisfaction without breaking the bank.
- Mid-Range Appliances: These offer mid-range options that combine solid performance with energy efficiency. These appliances last longer than entry-level models and provide a good balance of quality and price.
- Adding Convenience: In this budget range, you can add convenience features that improve resident experience, such as dishwashers and built-in microwaves. These appliances make a unit more attractive to prospective residents, especially families or working professionals who value convenience and time-saving features.
- Improving Resident Experience: Medium-quality appliances typically have more modern features like adjustable refrigerator shelves, quieter operation, or faster drying cycles. These little conveniences can significantly improve resident satisfaction, resulting in longer leases and fewer vacancies.
| Pros | Cons |
| Improved resident experience leads to higher retention and potentially higher rents. | Higher initial cost compared to entry-level appliances. |
| Mid-range appliances offer better performance and energy efficiency than basic models. | May require more research to find the balance between cost and quality. |
High Budget: Premium Appliances for High-End Rentals
In high-end rental properties, the appliances you choose are pivotal in creating a luxury appeal and justifying premium rental rates. This budget allows for high-quality, feature-rich appliances that impress residents and add long-term value to the property.
- High-End Appliances: Invest in stainless steel appliances, which are a hallmark of luxury. Brands like Bosch, Miele, or Sub-Zero provide smart features such as remote controls via mobile apps, built-in water filters, and advanced cooking modes. Energy-efficient appliances, including smart thermostats, add appeal and can reduce utility costs significantly over time.
- Creating a Luxury Appeal: High-end rentals often feature in-unit washer/dryer combos, which offer residents convenience and privacy. Additionally, smart thermostats and smart home integrations (like lighting controls or smart locks) can attract residents who value modern technology. These appliances create a luxury living experience and help set your rental apart from competitors.
- Maximizing ROI: While the upfront investment is high, premium appliances last longer and require less frequent maintenance. These appliances can also justify higher rent prices, attracting long-term residents willing to pay a premium for added convenience, design, and technology.
| Pros | Cons |
|
|
In short, when selecting appliances, you must align your choices with resident expectations, your property’s profile, and your budget. In budget-friendly units, focus on essential, cost-effective appliances to keep expenses low. For higher-end properties, premium appliances can enhance appeal and improve resident retention.
Energy Efficiency and Smart Appliances
Upgrading your rental properties with energy-efficient and smart appliances provides multiple benefits for landlords and residents, from cost savings to increased property appeal.
Benefits of Energy-Efficient Appliances for Landlords and Residents
Energy-efficient appliances, such as refrigerators, dishwashers, and washers/dryers, consume less energy and water, reducing utility bills for residents and potentially lowering maintenance costs for landlords. These appliances often have a longer lifespan due to their high-quality construction, meaning fewer breakdowns and replacements over time.
Plus, residents are increasingly looking for sustainable features, which can help you attract and retain high-quality residents.
Smart Appliances: Appeal to Modern Renters and Cost Savings
Smart appliances, like Wi-Fi-enabled washing machines or smart thermostats, are highly attractive to modern renters.
They allow for remote control and monitoring, offer convenience, and optimize energy consumption, reducing overall costs. These features make your rental property more appealing and provide practical savings that benefit both landlords and residents.
Rebates and Incentives for Energy Efficiency
Various financial incentives are available to landlords who invest in energy-efficient appliances. Under the Inflation Reduction Act and other programs, rebates for energy-efficient appliances such as refrigerators, washers, dryers, and dishwashers can reach up to $840 per appliance. Additionally, many local utility companies offer rebates, which can further offset the initial costs of upgrading to these appliances.
In Conclusion
Choosing the right appliances for your rental property is about more than just meeting resident expectations—it’s about maximizing revenue, minimizing long-term costs, and enhancing the overall value of your property. Whether you’re operating on a low budget or offering premium amenities in high-end rentals, making informed appliance decisions can significantly impact your investment’s profitability and resident retention.
Here’s a quick recap of the key takeaways:
- Low-budget properties: Focus on essential, cost-effective appliances like stoves and refrigerators. Consider used or refurbished options, but always weigh reliability against cost.
- Medium-budget properties: Opt for mid-range appliances that balance performance and price. Adding dishwashers and built-in microwaves can improve resident satisfaction without significantly increasing costs.
- High-budget properties: Invest in high-end, feature-rich appliances like stainless steel models and smart home integrations. These upgrades justify higher rent prices and attract long-term residents who value modern conveniences.
Understanding your resident demographic is essential when selecting appliances. Different resident groups have varying needs, and providing appliances that align with those expectations makes your rental more appealing. Additionally, bundling appliance purchases can provide opportunities for tax savings through deductions like Section 179 or bonus depreciation, which can help offset costs in a single tax year.
Regular maintenance is critical to extending the lifespan of appliances and minimizing repair costs. Scheduling inspections and performing routine maintenance prevents costly breakdowns and ensures appliances are performing optimally for your residents. Keeping track of the age of each appliance and planning for replacements helps avoid unexpected disruptions, keeping your property running smoothly.
Strategic appliance choices—basic or premium—enhance resident satisfaction, reduce turnover, and boost your return on investment. By investing in quality where it matters most, you can ensure your rental remains competitive, offering you and your residents a better living and financial experience.
If you are looking for more guides that will help you improve your rental business, check out the ones below:
