A competitive rental market means every investment you make in your property must pay off. It doesn’t make sense to add expensive amenities if they won’t lead to higher retention rates and an increased net operating income (NOI). Every year, in-unit laundry remains at the top of almost every renter’s wish list. Upgrading rental units to include in-unit laundry is an investment that pays off quickly – if you install high-efficiency washers and compact ventless dryers.
1. High-End Appliances Make Renters Happy
Whether it’s a new stainless steel kitchen, or convenient in-unit laundry, quality renters demand quality appliances. When property owners and managers make an investment in high-efficiency washers and compact ventless dryers they are more likely to attract and retain great renters. When renters are wholly satisfied with the available amenities, they often continue renting the same unit for longer terms.
2. Renters Want In-Unit Laundry
In 2017, National Apartment Association (NAA) reported in-unit laundry to be the top unit-specific amenity that owners chose to upgrade. Why? Because it’s a win-win for property owners and renters alike. Renters want the convenience of in-unit laundry, and they’re willing to pay higher rent prices for this amenity. Purchasing and installing laundry to individual units is a quick upgrade that has a fast return on investment, and it contributes to improved renter satisfaction. In-unit laundry makes renters’ lives easier while decreasing the likelihood of turnover.
3. Compact Ventless Dryers Decrease Costs
Energy efficient appliances cut costs for renters and property owners alike. After the initial purchase and installation, owners should expect to see decreased costs associated with service, maintenance and repairs. Additionally, because new, energy efficient appliances warrant rent increases, owners will also see increased income. On the other hand, renters can expect to save on monthly utility costs, often negating the increase in rent. While the exact utility savings depends on the specific city and utility service provider, renters can expect to save anywhere from $5 - $20 per month. That savings adds up quickly.
4. In-Unit Laundry Increases Net Operating Income (NOI)
The highest costs in adding in-unit ventless laundry lie in the initial investment. Buying in bulk through a wholesale distributor is an excellent way to decrease costs. Property owners can often take advantage of manufacturer rebates, tax rebates and/or utility rebates. A little research into what may be available in your area can go a long way in savings. High-efficiency washers and compact ventless dryers are easy to install because they do not require expensive venting, retrofitting or too much space, so installation costs can often remain low. With manageable up-front investment, decreased service needs and increased rental income, property managers often see an increased NOI after the first year.
As rental markets become increasingly competitive, amenities can make or break a property. The availability of amenities is often a deciding factor for renters, and in-unit laundry has consistently been one of the most sought-after amenities. Compact ventless dryers make in-unit laundry attainable for almost any property.
NOI Increase in Action: Saving $300 Per Unit With In-Unit Laundry
A property owner in the Midwest chose to outfit a 1,000+ unit multi-family housing complex with in-unit laundry in stages. As apartments throughout the property turned over, they were outfitted with new laundry appliances. After rebates were applied, the cost per apartment was roughly $1,200. Property management was able to expense the appliances at 37 percent the first year, bringing the federal income tax savings right around $400 per appliance, further reducing the initial investment to $800. The property owner was then able to increase rent and saved approximately $50 per unit each year from the repairs budget. In total, this property experienced an NOI increase of nearly $300 per apartment.
This isn’t the only example of long-term cost-savings. It happens frequently and is easy to achieve. See for yourself by conducting a simple, side-by-side comparison to determine how quickly in-unit laundry will increase your NOI and overall property value.
Download our How-to Guide: Ventless Clothes Dryer Side-By-Side Comparison