Landlord Lifeline

Helpful Hints on Buying New Appliances for Rentals

Being not just a veteran shopper, but a bargain hunter to the core, purchasing appliances for my rentals involves more of a calculated battle plan than just checking to see whether Home Depot or Lowe’s has the best deal.

In past blogs I have touted the virtues of craigslist.org and will now encourage you give it a check even to buy a new appliance.  It is amazing how often new appliances…not even out of the box…end up on craigslist.  Just last week I saw a built-in high end oven still in the box for 50% of MSRP (Manufacturer’s Suggested Retail Price).

So steps to start with:

1.   Know what you need (Does the rental merit a $400 refrigerator or a $2,000 refrigerator?)

2.   Know your budget and cash flow allowance (Landlordlifeline.com Cash Flow…)

3.   Know the dimensions of where this appliance will be going.

4.   Time frame (Is the current fridge dead and you need one today or are you planning to replace a marginal one when you find a good buy?)

5.   Are there options on the fuel source? (Some homes may have the option of electric or gas for dryers…electric or gas for kitchen range.)

Research surprised me on new appliance pricing… not much difference… but a little that could help get a better deal.   A basic 24” white dishwasher:

·         Home Depot , $279, GE, Energy Star

·         Lowe’s, $278, Frigidaire, Energy Star

·         Ultimate Electronics, $249, GE, Energy Star,

·         Best Buy, $249, Frigidaire, Energy Star

All of these qualify for any rebates or tax credits through Energy Star, so the end price will likely be lower.  Beware that not all new appliances are Energy Star rated… especially the low end products.

Those savvy shoppers among you have checked Home Depot and know there is an Americana line with a dishwasher for $219… What a steal?!… No, not a deal… an inferior product that this voice of experience will tell you doesn’t hold up under average… much less rental use.

Also, the savvy shoppers know that major big box stores are happy to price match.  If the same product in the same brand is cheaper at another store, they will lower the price… “price match.”  So the Frigidaire at Best Buy for $249 will get you the same dishwasher at Lowe’s for the same price.  So if Lowe’s is more convenient or has better service, ask for a price match.  Most big box stores will do a phone verification to confirm their competitor’s price.

Do your comparison shopping online right after you check craigslist.org for deals. Time is cash!

My best deal ever on an appliance came from a re-sale shop in a warehouse.  I was remodeling a Victorian for myself and had picked out at Sear’s the refrigerator I wanted… Jenn-Air, stainless steel, 25 cu. Ft. with bottom freezer… Sear’s $2,800 (this was five years ago), Sear’s has a “scratch and dent store” that had it for $1,800 with a small dent in the side… No, the story gets better… a re-sale shop manager who knew I was looking called to tell me they had a truck load of “scratch and dent” coming in from The Great Indoors (owned by Sears).  When I walked into their warehouse, there was the same refrigerator with a $500 price tag on it.  The door still had the manufacturer’s protective plastic on it and there were two large scratches on the door.  I figured for $500 I could buy a new piece for the door and be ahead, so I bought it.  When it was rolled into my kitchen, I pulled off the protective plastic and the scratches disappeared… I got a $2,800 refrigerator for $500 with no defects!

Smart Shopper Summary:

1.   Know what you need and when you need it

2.   Check re-sale resources like craigslist.org and get to know local “scratch and dent” stores

3.   Comparison shop online

4.   Ask big box stores for price matching if one store is more convenient

5.   Utilize Energy Star rebates and tax credits (keep records)

Please share your great deals and tips on finding great deals.

Thanks!

B

Filed under:
Art of Being a Landlord by admin