White Goods Rental for Landlords – does it make sense?

by Readers Question

8:30 AM, 23rd January 2013
About 8 years ago

White Goods Rental for Landlords – does it make sense?

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White Goods Rental for Landlords – does it make sense?

White Goods Rental for Landlords

Most of my properties have integrated appliances and where they don’t I’ve always purchased white goods outright as opposed to renting them. I treat white goods as part and parcel of the rental package I provide for tenants whether the property is advertised as furnished or not.

It has been interesting to read on this forum that some landlords don’t provide white goods at all. I’ve read a readers question about whether it’s the law to provide a cooker and another with lots of landlords debating whether it’s a good idea to provide a washer dryer.http://www.property118.com/wp-includes/js/tinymce/plugins/wordpress/img/trans.gif

My question is about renting white goods. I’ve had a quick Google and there are, to my surprise, still plenty of companies who rent household goods, not just TV’s but white goods too.

The last time I heard of anybody renting household goods was parents who always used to hire a black and white TV from Radio Rentals in the 1970’s!

Is hiring becoming fashionable again?

More to the point, does it make economical sense to landlords?

I’ve heard that there are big tax changes coming in terms of capital allowances in April so I doubt we will be able to offset the costs of providing or replacing white goods after that. I’m also wondering whether the hire charges for white goods could be offset against rental income as a business expense? I suspect they are.

When I think back to my parents justification for renting their TV the same logic does seem to fit the mindset of landlords. We don’t like the upfront costs unless we can borrow the money and we certainly don’t like sorting the problems when these things break down. Also, if we do decide to sell a property, what do we do with the white goods? We tend to give them away to the purchaser as part of the sale of course and that doesn’t make a lot of sense either does it?

My question is; do you rent white goods such as Fridge Freezers, Washer Dryers etc. and does it make financial sense?

Might this become more fashionable amongst landlords when the tax laws change?

I look forward to reading your replies.

Sincerely

Wendy


Comments

Mark Alexander

3:01 AM, 26th January 2013
About 8 years ago

This is an excellent piece of research Claude and thank you for sharing it. Is the £1,150 figure the cost of Bosch or Beko? Given that we are not going to be able to claim tax relief on capital expenditure for assets of this nature come April this year rentals will become more attractive, particularly to higher rate tax payers. Based on the figures you have come up with so far though I agree that on balance outright purchase still seems to make more sense. However, cashflow and convenience may well, for some landlords, prove to be a major deciding factor too. Please share any other thoughts or research you do and I will do the same. I find this debate fascinating.

8:53 AM, 26th January 2013
About 8 years ago

It may depend if you are using an agent, as the agent will have to spend the time to arrange the repair for an appliance you own, however unlike a sole landlord, the agent will already have an appliance repair company in place.

With appliance rental, you can just give the tenant the phone number so they do all the work themselves sorting out the repair.

Claudio Valentini

6:08 AM, 27th January 2013
About 8 years ago

The £1150 was for Bosch - last years models but new clearance items. BEKO would be a good £250 less

8:55 AM, 1st March 2013
About 8 years ago

Hi everyone, this is my first post and have only recently found the site.

We have 2 rental properties and a third about to be rented in June. For the first two we supply only the cooker but the third about to be rented is a luxury apartment with built in appliances which are already over 5 years old (all are Belling).

I am very interested in the idea of renting the applances and when any of them break I will serioulsy be considering this as opposed to full outlay without tax relief. I already pay higher rate tax and this loss of relief could make a difference over the years to come.

Over the next couple of weeks I am definitely going to investigate the cost of renting them and will post any findings on here. And will be keeping track of this post; very interesting.

On a side note, I haven't seen any posts reference general maintenance contracts (for plumbing, heating, boiler and general repairs). Is this something that any of you have in place or do you pay for each repair as it happens? I currently have a Birtish Gas homecare package but have a local plumbing and gas company qouting to take over for all 3 properties.

Any advice/links/info would be much appreciated.

Thanks,

Paul

Mark Alexander

13:04 PM, 1st March 2013
About 8 years ago

@Paul Harsley - when I contacted the big white goods rental providers earlier this year to alert them to this blog I expected them all to leave comments promoting their wares. However, they didn't really seem at all interested which I found rather shocking. Perhaps when they wake up to the opportunity here things will change. At the time I looked into pricing and the balance was still in favour of buying for cash wherever possible, even if high rate tax relief could be claimed. By the way, I've invited my personal tax adviser (Neil Barlow) to leave a comment regarding the tax position .

It will be interesting to see what your investigations reveal as well as reading Neil's comments regarding the tax position.

Hopefully it will not be long before the electrical appliance rental providers wake up to the extent of this opportunity. If there's a few of them competing we might even see prices falling and special "trade" deals for landlords (fingers crossed!)

Any landlords who would like an introduction to Neil should coplete the form at the fottom of the article via this link >>> http://www.property118.com/index.php/landlord-tax/

Neil Barlow FCCA ATT

15:12 PM, 1st March 2013
About 8 years ago

A tax deduction for the rental of white goods is allowable now and following the changes mentioned at http://www.property118.com/index.php/important-tax-news-for-landlords/36948/

I hope this helps.

5:13 AM, 23rd March 2013
About 8 years ago

Appliances for Rental is a very good option. it is very convenient for people who don\'t have fixed property or job or we can say students who stay for their education purpose can't buy appliances, so renting appliances is really a nice service.

Michael

15:48 PM, 4th February 2016
About 5 years ago

Good afternoon.

i am about to buy a buy to let and I am unsure whether to buy or rent the white goods.
My question being! Can i claim back the rental of the goods against any tax burden It might appear a bit of a noddy question but as a novice, any advice would be welcome.
Regards Michael

dom glynn

8:43 AM, 5th February 2016
About 5 years ago

As far as I know, it is now possible to offset the cost of replacement white goods. Does anyone know if that's not the case?

Chris Byways

9:00 AM, 5th February 2016
About 5 years ago

Only if FULLY furnished. Aiui. Then actual replacement, not a 10%.

A fairer system imv, but much more cumbersome.

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