Homes in the rental sector are more likely to have old and inefficient appliances for tenants to use in order to cut costs.
However, the appliances and lifestyle perks available within your property can allow you to generate a higher yield whilst broadening the properties appeal.
In a recent survey of landlords, it found that on average, landlords believed that premium appliances would help generate a 4% increase in rental income per month.
Most prospective tenants do not own their own appliances as these can not easily be taken from property to property (especially fridge freezers), therefore, tenants are likely to pay higher monthly rent for quality appliances that are readily available within the property.
Quality appliances can contribute to higher rental yield in several ways:
Attracting tenants: Upgrading appliances to high-quality, modern ones can make your rental property more appealing to potential tenants. People are often willing to pay higher rents for properties that offer the convenience, energy efficiency, and reliability that come with quality appliances.
Competitive advantage: In a competitive rental market, having superior appliances can give your property an edge over others. Tenants may be willing to pay a premium to rent a place with better appliances, especially if they are durable, low-maintenance, and offer desirable features.
Longer tenancies: When tenants have access to quality appliances, they are less likely to experience frequent breakdowns or inefficiencies. This can result in a more positive rental experience and may encourage tenants to stay longer. Longer tenancies mean reduced turnover costs and a steady rental income stream, ultimately contributing to higher rental yield.
Positive word-of-mouth and reviews: Satisfied tenants are more likely to recommend your property to others or leave positive online reviews. This can lead to increased demand for your rental property, allowing you to attract higher-quality tenants who are willing to pay higher rents.
Energy efficiency and cost savings: High-quality appliances often come with energy-efficient features, such as ENERGY STAR ratings. Energy-efficient appliances can help reduce utility bills, which can be attractive to tenants who value cost savings. Lower utility costs can make your property more appealing, potentially allowing you to charge a higher rent and increase your rental yield.