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Renting As Is

By
Property Manager with HomePointe Property Management, CRMC 00691121

 

 Some of our clients want to rent their homes with some of the items "as is".  They might tell us that the washer and dryer can stay, but they do not want to fix them.  Or, they don't have a way to move their refrigerator, so can they leave it in the house, but rent it "as is".

Is this a good idea?

I think it is a bad idea for a couple of reasons. 

First, what happens when the refrigerater goes out one week after the tenant takes possession?  I can tell you with some certainty, that the tenant will not be happy.  Their first thought will be that they just got ripped off.

Second, what happens when the referigerator breaks down a year later?  Well, I bet the tenant has forgotten about the "as is" by then and will call to request repairs.  Even the best intentioned owner or property manager could simply send a repair guy out to make the repair.  Oops!  Or, they remember and now the tenant has an unexpected bill, plus the owner now has to haul the thing out of there.   How do you spell NOT HAPPY? 

Pretty much, renting appliances "as is" is a set up for poor customer service.  So, if you don't want to keep it in good repair, take it off the property.

Next:  What appliances should be provided with a rental?

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Posted by

Robert A. Machado, CPM, MPM

HomePointe Property Management

Sacramento, Yolo, El Dorado, and Placer Counties

We manage residential and commercial property.

916-429-1205 x 105

rmachado@HomePointe.com

Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

That's an excellent post Robert!  I inherited my mother's apartments a number of years ago.  We did provide refrigerators and stoves in each of the units, but nothing more.  Never were the tenants expected to accept the appliances "as-is." 

I managed to find a couple really good used appliance stores around town, which I could tap should I need a really good conditioned replacement in a hurry however.

My experiences "trying" to manage those apartments, gave me a really healthy respect for property managers and what they endure.

I could count on the beginning of every 3 day holiday, when the family was trying to get out of town, having a tenant with a major issue needing to be addressed.

 

Aug 04, 2008 05:53 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

I include a clause in the lease that washer and dryer will be fixed or replaced at the owner's option so that tenants don't demand NEW ones.

I remove washer & dryers between tenants if they have had too many service calls and rent the home without washer & dryer.

Incoming residents are encouraged to change out their connection hoses AND washers so that leaks do not happen during their tenancy.

Refrigerators should always be provided and for rental homes over $900 per month, they should have an icemaker. 

Most of my homes have built-in microwaves which are a pain when the electronic panel blows!!!

Having a GOOD appliance service company is IMPERATIVE....I love mine and drive 20 miles each Xmas to provide them with a poinsetta plant for their office.

 

 

Aug 05, 2008 05:13 AM
Leslie Prest
Leslie Prest, Prest Realty, Sales and Rentals in Payson, AZ - Payson, AZ
Owner, Assoc. Broker, Prest Realty, Payson,

The only appliances we'll do this with are washer and dryer, because they aren't essential and a tenant can pick up used ones fairly cheaply.

Aug 05, 2008 05:34 AM
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management

Leslie,  I just don't like the as is deal because it always seems to be a customer service nightmare.  Thanks for sharing!

Aug 08, 2008 04:34 PM
Jo Newton
Rentals Made Easy Mgmt Group - Conyers, GA
Realtor & Property Manager

Great point!  I always recommend home warranties to the owner and the tenant is responsible for repairs under $75.  That usually covers the service call.  It's a win win sitiuation and involves less headache on most repairs. 

 

Jo Newton

Sep 29, 2008 02:13 PM
Steven Max Parry - Utah Real Estate
Spectrum Real Estate - Riverton, UT

Good posting...all of our properties have home warranties and we recommend that to our owners as well. Home warranty companies can be frustrating to work with but the money saved for your client makes the hassle worth it. I woud be skeptical of a client wishing to rent their property in "as is" condition.

Oct 24, 2008 02:49 AM
Golden Estate Management
Golden Estate Property Management - Los Angeles, CA

Great post. I feel like if you rent to tenants "as is" you will be loosing more money than anything and you will probabky build a bad rep with many of your tenants. Thank you for sharing that with us.

Dec 04, 2008 05:02 AM
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management

I don't like home warranties very much.  The vendors seem to want to upsell the service and the consumer does not get to  use a vendor they know.

Dec 14, 2008 02:07 PM