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As you prepare a listing to advertise your rental property, it’s wise to keep the Fair Housing Act requirements in mind. Passed in 1968, the Fair Housing Act is intended to create equal access to housing for all, regardless of familial status, sex, disability, religion, color, race, or national origin.
Based on the Fair Housing Act’s seven protected classes, the guidelines below will help you write your rental listings appropriately so you can avoid any discriminatory wording and subsequent legal trouble.
5 Things to Avoid Saying in Your Rental Listing
1. Familial Status
Many landlords don’t realize their listings express a preference for (or against) a family, which the Fair Housing laws do not permit.
Your property may have a yard that’s great for family activities, but explicitly stating that your property is perfect for or best suited for a family is a big no-no when it comes to advertising. According to the Fair Housing laws, you may not state preference, discrimination, or limitation due to familial status.
- Do not advertise a preference for adults, couples, or singles to rent the property, or mention anything about a family dynamic. You should also stay away from wording that addresses familial status, like “family-friendly” or “perfect neighborhood for singles.”
- Do advertise based on the property description. For example, you can make statements describing a property with multiple bedrooms, a comfortable family room, a spacious backyard, or the neighborhood’s quiet streets — all of which are features a renting family is probably looking for.
2. Sex and Gender
When advertising your rental property, you cannot state preference, limitation, or discrimination based on a person’s sex.
While the Fair Housing Laws do not specifically address gender, 22 states prohibit housing discrimination based on gender identity, so be sure to avoid any wording that addresses sex or gender in your rental listing.
- Do not state that you are specifically looking for female or male renters or indicate a gender preference (see the below exception to this rule when advertising shared living spaces).
- Do describe the property in commonly-used terms. According to the Department of Housing and Urban Development (HUD), using terms like “master bedroom,” “bachelor apartment,” or “mother-in-law suite” are not discriminatory and are fine to include in a listing.
3. Disability
Regardless of whether or not your property is accessible to those with a disability, you aren’t allowed to explicitly state it in your listing.
- Do not advertise any exclusions, limitations, or other indications of discrimination based on a disability (i.e., no wheelchairs). While your unit may or may not be accessible to those with a disability, you want to avoid advertising in an exclusionary way.
- Do include property descriptions in your rental listing to provide important details to prospective tenants and help them get an idea of what your rental is equipped for — like an elevator on the premises, a wheelchair ramp available, or a third-story walk-up with no elevator.
4. Religion
Avoid any religious wording or religious affiliation in your rental listing, with a few exceptions:
- Do not advertise your rental in a way that states a preference for or discriminates against a certain religious group. Don’t say things like “a Christian home” or state that your rental is in a Jewish neighborhood.
- Do focus on the property amenities. According to HUD, you’re allowed to point out that the apartment complex has a chapel or mention available services that may be affiliated with a religion. If your complex or facility has a name that contains a religious reference or seems to demonstrate religious preference, HUD recommends adding a disclaimer to your listing, stating that your home does not discriminate based on familial status, sex, disability, religion, color, race, or national origin.
5. Color, Race and National Origin
These last three are separate classes under the Fair Housing Act, but each of these classes should never be mentioned under any circumstances on a rental listing.
- Color: There’s absolutely no reason you should include anything about a tenant’s skin color on your rental listing. It’s a direct violation of the Fair Housing Act.
- Race: Under no circumstances should you discuss race on a rental listing. Never use wording like “an African American neighborhood” or “an Asian family home.”
- National Origin: You cannot state a preference for or discriminate against any group of tenants based on national origin in a rental listing. Stating that you’ll require tenants to provide documentation of their citizenship, immigration, or work eligibility status (for example, screening foreign students or workers on a student or work visa) doesn’t necessarily violate the Fair Housing Act; note, however, that you cannot selectively ask tenants for citizenship or immigration status.
Also note that in some states, like New York and California, it’s illegal to inquire about immigration or citizenship status at any point during the rental process, so make sure to reference your state laws first.
If you need help writing your rental listing, use the Avail rental listing feature. You can easily build a rental listing that highlights the right features, and then we’ll generate a listing description for you based on the information you entered.
Exceptions to Keep in Mind as You Write Your Rental Listing
There are a handful of limited exceptions to the above rules, but these are two exceptions you may come across as you’re writing a listing for a unit in a senior housing facility or a shared living space:
Senior Housing
If you’re writing a rental listing for a senior housing unit, home, or facility (including 55+ communities), you may state that families with children are not permitted as long as it is clear that you are advertising for a senior living facility or housing for older persons. If it is not a senior housing facility, this statement would be a violation.
Roommates or Shared Living Spaces
If you’re advertising a home or unit with a shared living space and are specifically looking for a female or male roommate, you can state that requirement in your rental listing — but only if shared living arrangements apply to the property.
With a good understanding of the Fair Housing laws and their restrictions, you can create compliant rental listings without worry. The bottom line? Focus on physical descriptions of the property and stay away from language that implies any preference or restriction about the type of tenant you’ll accept.
Avoid Violating the Fair Housing Act With Avail
Remember that the Fair Housing Act is a piece of federal legislation, which means our state or city may have additional laws or regulations that you need to abide by. For more information on state laws, reference our state-specific landlord-tenant law resources before you write an effective rental listing.
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Accepting rent in advance isn’t always a smart move. If you’re a landlord and you’re presented with the option of accepting a lump sum of rent up front, there are a few things to be aware of before you do.
Why Would a Landlord Accept Rent in Advance?
A landlord usually collects rent in advance to cover risks or make the rent collection process easier. These are some of the more common reasons a landlord would accept rent payments in advance:
- Safeguard rent payments: If a tenant is unemployed or can’t provide proof of income, accepting several months (or more) of rent up front ensures that the landlord gets paid.
- Avoid the hassle of rent collection: Some landlords offer discounts to tenants paying rent in advance. This way, payments are secured and a landlord doesn’t have to worry about rent collection.
- Secure a property: If the rental is new to the market or has multiple applicants, landlords may ask tenants if they’d be willing to pay rent up front to secure the property. This way, tenants can avoid losing a place they like and landlords can identify the tenants who are serious about living in the property while guaranteeing rental income.
- Lack of rental history: If a tenant has no rental history (as often happens with college students moving out on their own for the first time), some landlords might require an upfront payment to ensure rent is covered.
5 Risks of Accepting Rent in Advance
There are a handful of seemingly logical reasons to have a tenant pay rent in advance, but before you do, know the risks and requirements that come along with them:
- Lease violations: If a tenant violates or breaks the lease, but they’ve already paid rent in advance, you would be required to pay back the amount of rent left from the prepaid portion.
- No rent increases: If you collect rent in advance, you will not be able to increase the rent during that prepaid time frame.
- Prepaid rent and security deposit rules: Each state has rules regarding security deposits, and some states may only allow a landlord to collect first and last month’s rent plus a security deposit — and nothing else. Other states treat upfront rent the same as a security deposit, subject to the same rules, regulations and interest payments. Make sure you know your state’s rules before you agree to take any rent payments in advance.
- Extra bookkeeping and accountability: Some states may only allow you to accept rent in advance if it is deposited into a trust or escrow account, and only transferred to the landlord’s account when the monthly rent is due.
- Taxable Income: Rent paid in advance is taxable income. Landlords will pay taxes on the advance rent the year it is collected and not necessarily during the tenancy time frame. For example, if a tenant pays rent in December that covers tenancy from January to June, the advance rent paid in December must be claimed for that year, and not the year during the tenancy.
Remember that any rent a tenant pays in advance doesn’t automatically become a landlord’s money. Prepaid rent will be subject to rules and regulations depending on state laws, so be sure you look into your specific state laws and how they’ll affect advance rent payments.
Alternatives to Accepting Rent in Advance
If you’ve decided collecting rent in advance is not something you want to do, there are other ways to ensure you receive rent on time each month.
- Require a co-signer: You see this most often with young tenants who are renting their first apartments or co-living spaces. A co-signer (often a parent or relative) assumes secondary responsibility for paying rent if the tenant defaults.
- Use a rent guarantor service: A rent guarantor service is similar to a co-signer, but for tenants who don’t have anyone to co-sign their lease. Tenants pay for the service (usually per lease) and the hired guarantor is responsible for paying the rent if the tenant cannot.
- Get rent guarantee insurance: Landlords can sign up for rent guarantee insurance to cover their rental income if a tenant stops paying. Rent guarantee insurance covers up to six months of lost rent per year, and allows landlords to start the eviction process without giving up months of lost rental income.
Because of the associated risks and disadvantages, collecting rent in advance is not common. If you do decide to collect rent in advance, make sure you check your state laws and specify the upfront payment details with a customizable lease.
Most landlords prefer to collect rent on a monthly basis, and most tenants prefer to pay their rent monthly, too. Reducing the amount of effort and complications is the best way to ensure a smooth rent collection process, so many landlords (and their tenants) opt for online monthly rent payments.
Avail Makes Rent Collection Easy
Using an online rent collection platform, tenants can set up automatic payments, pay with their bank account or credit card, and even boost their credit with on-time rent payments, and landlords can automate rent reminders, set up late fees, and get their rental income deposited quickly into their bank account.
For a more detailed look into the rent collection process — including collecting late rent, implementing late fees, raising your rent, and much more — check out our Complete Guide to Rent Collection.
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Hiring a property manager can be a great option to helping alleviate some of the responsibilities of being a landlord. But just like managing a property yourself, there are pros and cons of hiring someone to manage your rental property.
We outline the advantages and disadvantages of both strategies to help you decide on the best way to manage your rental property.
Why Do Landlords Hire a Property Manager?
There are plenty of reasons why landlords end up hiring a property manager to take over their rental management duties, but these three are the most common:
- To avoid time-consuming tasks: Rental properties take time and effort to manage. If you don’t have the time to manage your rental, you probably won’t be able to maximize profits.
- To avoid the hassle of coordinating maintenance: It’s not always easy to find reliable professionals to handle repairs and maintenance. And if you’re not first in line with the painter, plumber, or electrician, the repairs might get delayed and cost more.
- To avoid a vacant rental and the effort of finding new tenants: Property managers will take care of finding tenants and filling your rental back up when it’s empty. They’ll also (hopefully) vet the tenants with background and credit checks, so you don’t have to.
5 Advantages of Hiring a Property Manager
If you’re struggling to self-manage your rental, a property manager could be a suitable fix. Here are five advantages of hiring a property management company.
1. Handle Daily Rental Operations
Again, you won’t have to spend time on the phone, run around tending to your properties, or perform maintenance work. They’ve got it covered so you don’t have to think about it.
2. Network of Maintenance Staff and Contractors
You won’t have to worry about a contractor’s availability or finding a fair quote, since most property managers already have a list of contacts. You also won’t need to check to be sure they finished the work you paid them — the property manager can be responsible for that.
3. Extensive Screening Process
Property management services have systems to run background checks and find responsible tenants, removing the need to do it yourself.
4. List Your Rental and Determine Rent Price
Analyzing your area’s rental competition and determining a competitive rental rate takes some effort. Rental property management companies do this for you.
5. Collect Rental Fees and Handle Late Rent Payments
Property managers will deal with your rent payments, including following up on late rent — a dreaded task for most landlords.
5 Disadvantages of Hiring a Property Manager
As noted above, there are many good reasons to hire a property manager. But before you do, make sure you’re aware of the downsides of handing your property over to a management company:
1. Costly Monthly and One-Time Fees
The cost to hire a property manager can range from 6% to 12% of the rent, plus expenses for purchased repair and replacement items. This rate will vary depending on your location. As an expense line item for you, property management fees eat into your rental cash flow and make your investment significantly less profitable, especially if you only have a few properties.
2. Different Tenant Screening Process
Rental property management companies must follow your state’s landlord laws. If it’s not in the state laws, there is little wiggle room. This means they decide who can live in your rental, and may turn away tenants you would be willing to consider. On the other hand, they might accept tenants you would have passed on after noticing certain red flags.
3. More Expensive Maintenance Costs
These crew members are typically full-time, salaried employees, and the management company has business overhead costs for insurance and licensing. While independent contractors have similar expenses, they may not charge as much because their overhead is lower, or their maintenance work may be a side gig.
4. Less Control Over Property Operations
A property management company may not be the best route if you prefer to be hands-on with your investment property. You’ll have less control over the entire rental process, from tenant selection and setting the rent price to maintenance and property upkeep.
5. Different Marketing Processes
Not all management companies are up to date on the best way to market a vacant rental property online. Some may even resort to utilizing a local online listing platform (like Craigslist, known for rental fraud) or bringing it back to the 1990s by placing an ad in the local newspaper. This may work, but you’ll attract tenants faster with listings on top sites — and you’ll probably have a better pool of quality candidates on those top listing sites, too.
How Landlord Software Can Help You Manage Without a Property Manager
Landlord software platforms can be a viable solution to streamline your management process, tenant screening and rent collection tasks without needing a property manager. It can also provide support and tools for a range of rental property issues to help you save time and money. Here’s additional ways in which landlord software can help:
- Complete control: Unlike a rental property management company, an online platform gives a landlord control over screening and accepting tenants. Many platforms offer comprehensive screening and background checks so you can be sure you’ve carefully vetted your potential tenants and that they’re the right fit for your property.
- Helpful tools online: You’ll want to choose a platform that isn’t based on paper or files on a computer. Online DIY platforms allow you to manage your property and keep track of important records all in one place. Plus, features like convenient online lease signing and quick online rent payments are a big draw for many tenants.
- Cost: DIY landlording is far less expensive than hiring a property manager, so you’ll get more money out of your rental investment. For example, you can create an Avail account for free or upgrade to Unlimited Plus for $7/per unit to access our premium features. The monthly cost of using Avail is drastically less than hiring a property manager.
- Rent payments: DIY platforms offer online rent collection, so tenants can easily pay online (either with a bank account or credit card) and landlords can receive that rent right into their bank account. Many will send tenant reminders about upcoming rent payments and will automatically charge a late fee of your choosing, so you don’t have to be the one who’s pestering your tenant for the rent.
- Rent price analysis: Just because you don’t have a property manager doesn’t mean you need to do all of the work figuring out what rent to charge. Some DIY platforms offer a rent estimate report, which will help you set a competitive rent price while showing you rental market trends and how your rental compares to those nearby. This way, you’ll be able to know you’re getting the most out of your rent price.
- Maintenance assistance: If you’re managing the property yourself, you’ll have to deal with maintenance requests. But platforms like Avail make that a little easier with maintenance tracking tools, where tenants can submit requests and photos and landlords can coordinate repairs and keep track of expenses.
- Marketing at your fingertips: Marketing open units can be complicated. There are DIY platforms that offer done-for-you marketing packages to advertise your rental property and list it across all the top sites quickly and easily.
- Landlord resources: Unlike other DIY platforms, Avail has resources, educational materials and customer support available seven days a week, a lifesaver for the new or inexperienced landlord.
Manage Your Rentals Like a Pro With Avail
Due to the cost of a property manager, many landlords with 10 or fewer units often opt to take a DIY approach to their property management needs. If you’ve decided that DIY property management is the best route for you, create an account with Avail to help you streamline the rental property management process.
Advertise your rental property, screen prospective tenants, access lawyer-reviewed lease agreements, collect rental fees, track rental property accounting, and more in one platform.
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Finding the right mix of landscaping solutions for your rental property can be a challenge. As a rental property owner, you need to strike a balance between your desire for an attractive property and the necessary investment (both time and money) to maintain it. These cost-efficient, low-maintenance ideas will help you get the most out of your rental property’s outdoor space.
3 Questions to Consider Before You Start Your Rental Property Landscaping Project:
Before you start, pay attention to these three considerations that are important in any rental property landscaping project:
1. How much will landscaping increase the property value and monthly rent?
Many landlords don’t think of landscaping as an investment. More often, they view landscaping as a necessary nuisance. They want enough curb appeal to keep the rental value as high as possible, but also want to keep their expenses as low as possible.
With low-maintenance landscaping, long-term investment in a few key enhancements will keep your replacement costs low and make your rental property more attractive to tenants who will pay more to rent a well-landscaped home.
Most tenants will expect the property to be both attractive and functional. If you have a rental property in a high-end community, this expectation increases, along with the monthly rent you can charge. But similar to interior improvements and renovations, you don’t want to over-renovate your rental property landscaping — be sure to keep in mind your rental competition and return on investment.
2. How can you optimize the space for your tenants?
Keeping tenant-friendly landscaping in mind is key for attracting quality tenants to your rental property. If you allow pets, make sure your outdoor space is pet-friendly (for example, by including a durable fence and a grass area) and won’t be easily ruined by a tenant’s pet.
If you’re renting to multiple tenants or a family, a lawn, grilling area or other communal space for their enjoyment will likely add value and interest to your rental property. Creating an outdoor common space may take a little upfront investment, but many outdoor spaces are easy to maintain and will increase your property value.
3. Who is responsible for yard maintenance, and is that responsibility defined in the lease?
Most cities have ordinances regarding the length of the grass, leaf and debris clean-up, and snow removal. Many homeowners’ associations also have bylaws that outline requirements for any landscaping improvements as well as expectations for regular maintenance.
If your rental property’s landscaping includes specialty plants that need extra care, or lawns that need to be mowed every five days like clockwork, you’ll want to explain that clearly in the lease. Outlining landscaping and yard maintenance expectations in the lease will help you avoid potential conflict over maintenance issues with your tenants. If you offer a landscaping service, you may want to incorporate that into the property’s rent price.
Use our customizable lease templates to outline who is responsible for rental property landscaping.
Low-Maintenance Landscaping Tips for Your Rental Property
You’ll want to start by assessing your outdoor space and making some decisions on landscaping and plants. Consult your local garden center or landscaping company, or visit the USDA plant hardiness zone map to ensure you choose proven and hardy plants that will thrive in your area. When in doubt, stick with plant varieties native to your region — they’ll require the least amount of maintenance.
Grass
You can find low-maintenance grasses that need minimal watering and mowing. Replacing grass will have an upfront cost, but it will save you time and money on maintenance. These types of grasses will typically be easier on the checkbook and look beautiful year after year.
- No-mow grass seed mixes are usually fine fescue (flowering grass plants) mixed with a ground cover seed such as clover, moss, or monkey grass. No-mow lawns only require regular watering in the beginning; after that, you only need to mow once a month (or less), depending on how tall you like your grass. No-mow grasses are hardy and need very little water, fertilizer, or chemicals to keep them looking good.
- Low-water grass seeds are a fescue mix, and once established, these low-water grass options require very little water. There are a handful of low-water grass options, including Fleur de Lawn (a wilder variety of grass with flowers) or Bluestem Enviro-Turfm (a durable, drought resistant lawn). You won’t need to hire a service, install an in-ground sprinkler or ask your tenants to help keep the lawn lush and green.
- Single varietal grass seed are the best option if you prefer grass that looks consistent and manicured. Unfortunately, if you prefer a traditional lawn, you’ll have a harder time finding a low-maintenance grass option. These single varietal seeds take both careful watering and regular mowing. For this type of grass, you should probably consider a watering system (an in-ground automatic system will best protect your grass investment).
If you don’t want to install a watering system, you can provide sprinklers and instructions for your tenants to use and maintain the lawn, or hire a service to do this for you weekly.
Plants and Flower Gardens
If you are partial to evergreen or flowering plants, you’ll want to turn to perennials. Plant them once, and these beautiful and hardy plants will bloom to add attractive color to keep your yard looking stylish and inviting year after year.
You can use perennials to control the lawn or garden border, prevent soil erosion, and minimize the maintenance needs of a full lawn. Keep these considerations in mind when you plan the garden at your rental property:
- Flowers: A flower garden doesn’t have to be flowers only — the garden can include low-maintenance evergreens and other bushes. Evergreen bushes and other dwarf shrubs like boxwood, hydrangeas, and spirea will help you build an attractive, low-maintenance garden.
- Weed control: For weed control in your flower or perennial garden, skip the black weed liner. Liners take a lot of time to install, and over time they break down, allowing weeds to peek through and take over. Instead, consider different types of mulch, pea gravel, rubber mulch, or rocks to prevent weed growth.
- Watering systems: You may not need an automatic watering system if you design your landscape accordingly. There are drought-resistant perennials for all types of planting zones, and many drought-resistant perennials can survive with the natural rain cycle.
- Hardscaping: This form of landscaping is more prevalent in desert climates, since it incorporates hard landscaping materials (like stone, brick or wood) into your outdoor space. Still, landlords in any area of the U.S. can make good use of hardscaping options to reduce their expenses for exterior maintenance and make their outdoor landscaping multifunctional. Popular hardscaping designs often include decks, patios, and decorative brick or stone garden designs.
Pick the Right Landscaping for Your Climate
Back to that plant hardiness zone map! For easy maintenance and lower costs over time, choose plants that are appropriate for your property’s environment and climate. If you want to branch out, here are a few other low-maintenance landscaping options.
- Turf or synthetic lawns: Turf and synthetic lawns have improved in both quality and appearance since they first came on the market. Artificial lawns don’t require water or mowing (great for areas with little rain or prone to droughts), and most people can’t tell the difference between turf and real grass. To keep your artificial turf looking nice, you can take the hose and spray it off occasionally.
- Succulents and Xeriscaping: Succulents are tough plants that are beautiful and rustic looking. Cacti, aloe, agave, and hardy grasses are popular in Xeriscape landscapes (mixing hardscape materials and succulents to create an attractive and drought-tolerant landscape). If you live in a mixed climate with extreme heat and little rain, Xeriscaping with succulents is a great low-maintenance option.
- Wetland Plants: If you live in a rainy area, you’ll want plants that thrive in a wet environment. A few low-maintenance options for flowering and non-flowering plants that love water include dogwood bush, inkberry bush and marsh marigolds. You may also want to consider planting a layered natural rain garden of water-loving trees, smaller perennials, flowers, and grasses.
- Native perennials: These plants will die off when the temperature drops and the snow falls. But don’t despair — these plants will rebound the following season. Evergreens are a great addition in a cold climate, because they add a vibrant and reliable pop of green when everything else is white or grey.
- If you have ample shade and moisture, hostas, moss, or other shade-loving perennials will thrive and keep your yard looking beautiful.
Keep Pets in Mind as You Landscape Your Rental Property
Pets — especially dogs — need room to run and play. Unfortunately, their claws dig up the grass, and they can leave a ruined lawn in their wake. Here are a few tactics to keep the lawn and landscaping looking beautiful, even if you have pet-owning tenants.
- If you allow tenants to have pets, your rental agreement should have written expectations for pet owners. Be clear about requirements to pick up after pets, and specify any designated pet-friendly areas in the yard.
- Landscape the yard to be pet-friendly and to avoid future maintenance costs. This can be as easy as setting aside pet-friendly areas. Fences and rock gardens are your best bet for maintaining the overall look of your yard, but if that’s not possible, watering the grass frequently will help keep it from turning yellow.
- Consider dog-friendly landscaping materials such as pea gravel or small pebbles. This extra layer of drainage material will help filter the urine, making it easier to pick up dog waste and protect the grass. Plus, the gravel is small enough not to injure the dog’s paws.
Know Your Local Ordinances
As a landlord, it’s essential to make sure your landscaping complies with local ordinances. Get a copy of the green space rules and a list of prohibited plants or grasses. Following ordinances will help you avoid any fines or the need to replace plants or other landscaping features after starting your project.
The right landscaping for your rental property can increase your property value and allow you to raise your rent. Once you’ve renovated your outdoor space, make sure you know how to write an impressive rental listing to highlight your property upgrades and attract quality tenants.
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There are a few big-ticket items in a rental property that landlords usually avoid replacing unless it becomes a necessity. Property owners often put off replacements for HVAC systems, water heaters, roofing and siding — but windows are a favorite avoidance of all.
Windows fall in the big-ticket column for a reason; they cost quite a bit of money compared to other updates in rental properties. Landlords can usually raise the rent after they put in new flooring or update the kitchen and bathroom, but they don’t often see the same return on investment for new windows.
If you’re considering replacing the windows in your rental property, you’ll want to carefully evaluate the current windows to make sure the timing is right.
Here are 5 indicators that signal it will soon be time to replace windows:
- Moisture on the inside of the window
- Condensation between the panes of glass
- Air leakage
- Broken or cracked panes
- Problems with opening and closing
Windows, like other daily-use items, wear down and need to be replaced every 15 years on average. This time frame will vary due to several factors, such as the quality of the window, climate, and window maintenance.
Note that the quality of the window often trumps climate and maintenance — high-quality windows require little yearly maintenance and are built to withstand even the harshest climates.
Measuring Window Quality for Rental Properties
A U-factor and R-factor are the measurements of a window’s quality and efficiency. The U-factor tests the transfer of heat through the glass; when the U-factor is lower, the energy efficiency is better. The R factor tests a window’s heat resistance or insulation to prevent heat loss; when the R-factor is higher, the energy efficiency is better.
Windows with higher ratings will be:
- A higher-quality window that lasts longer
- Easier to maintain
- Better looking, adding to curb appeal
- More efficient for tenants by keeping heating and cooling costs low
The National Fenestration Rating Council conducts these ratings, providing information to measure and compare the energy performance of windows, doors, and skylights.
The Average Cost of Windows
The cost of new windows will vary dramatically depending on the quality of the window you purchase. In some cases, you’ll need to determine whether you can retrofit an existing window or need to opt for a full replacement.
With all the options available, it’s important to consider the price and performance of the window. Vinyl windows, wood windows, and fiberglass or composite windows are the most common windows on the market today.
Vinyl Windows are cost-effective and efficient but have aesthetic drawbacks. They can’t be painted and are usually white.
Wood windows, on the other hand, are on the higher-end of the cost scale. They have higher maintenance costs because they have to be stained almost yearly. However, wood windows can be customized by look and build to match your home’s styles.
Fiberglass windows fall in the middle. They are mid-range on cost and they can be customized to match the exterior.
However, most property owners stick with vinyl. Vinyl windows are cost-effective and keep maintenance, heating and cooling costs low.
According to Homeadvisor.com, per-unit costs for a replacement window range from $75 to $1,500, plus another $100 to $300 in labor, depending on the material. Even with deep pockets, the price of windows can add up quickly.
Windows With the Best Value for a Rental Property
Consumer Reports has conducted numerous tests on replacement windows to determine which windows offer the best value for the price and performance. Here’s what they found, priced from lowest to highest:
- Vinyl casement: American Craftsman by Andersen 70 Series, $260
- Vinyl double-hung: Simonton Pro-Finish Contractor, $260
- Wood double-hung: Andersen 400 Series, $310
- Wood casement: Andersen 400 Series, $400
- Fiberglass double-hung: Integrity from Marvin Ultrex, $450
When considering replacement windows, the cheapest option isn’t always the best. If the windows are not good quality, your tenants will end up paying more in heating and cooling and may look for a new place to live. Curb appeal is also important — you want windows that complement the rental property to keep the exterior looking its best.
Are Replacement Windows Tax-Deductible?
It can be hard to take out the checkbook to buy new windows. However, as a property owner, you need to look at the overall picture, which includes taxes and cash flow.
Replacing rental property windows is tax-deductible, but how the replacement will affect your overall profits and losses depends on the type of replacement or repair. When it comes to taxes, your window investment falls into one of two categories:
Repair: When you fix or replace a window due to breakage or misuse. As a landlord, you can expense window repairs like any other maintenance item. This means the cost will be deducted against income that the property earns.
Capital improvement: When you replace a window to improve the overall value of the property, either in curb appeal, tenant comfort, or functionality of the window. Capital improvements are any repairs or replacements that increase the value of the property or extend the useful life of the property.
The depreciation for a capital improvement is 27.5 years. This means you’ll get paid back over time as the “usefulness” of the window is depreciated. Windows are considered capital improvements because they are part of the overall building structure.
Also keep in mind that if your current windows are causing good tenants to complain, those windows could cost you money in the long run. When deciding whether to replace anything in a rental property, landlords need to consider a potential loss of cash flow that could result from losing quality tenants. Keeping your tenants happy and in place by maintaining your rental property is one way to help safeguard future rental property cash flow.
Taking Your Area’s Climate Into Account
Your rental property’s climate is another important factor to consider when you’re replacing windows. Some windows are better suited for certain climates than others, so it’s important to know what to look for.
Storm-prone areas: Is your property in an area of the country that experiences extreme weather conditions like tornadoes, hurricanes, or high winds and rain? This type of weather activity will cause windows to break down faster than a mild climate. A chemically treated window with tempered glass and good insulation should protect the rental property from the high winds, rain and pressure changes.
High heat: Heat is another factor that affects window efficiency both inside the property and out. When the outside temperatures climb, you want your windows to maintain their energy efficiency and keep the cool air inside and the hot air outside. You’ll want to consider windows with the best insulation and a high R-factor (with the lowest heat conductivity). This will help keep energy bills under control and air conditioning more efficient during the peak of summer.
Extremely cold winters: To protect tenants from the elements, rental property owners in colder climates need the best windows. Frost and moisture can easily lead to cracking and rotting windows in colder parts of the country. Buying windows with the best insulation and a high R-factor (with the lowest conductivity) is a necessity to keep energy bills under control during the cold winters.
Coastal conditions: Waterfront properties deal with a combination of weather elements at the same time: saltwater, high winds, humidity, and sudden temperature changes. These elements will damage windows over time. Consider purchasing replacement windows with tempered glass, good insulation, and low conductivity to keep your rental comfortable year-round.
Fault lines: Temperature and moisture are not the only considerations when it comes to window efficiency — slight movements from earthquakes can take their toll on window materials as well. If you own rental property in an earthquake-prone area, it’s essential to buy windows with tempered glass or panes that have been sprayed with special chemicals to help prevent shattering and strengthen the integrity of the window.
Fortunately, replacing windows in a rental property isn’t an everyday or even a yearly requirement. But armed with the best tips and tricks, you can choose the most efficient and cost-effective windows for your rental property and while balancing renovation costs.
Evaluate Other Rental Property Upgrades and Manage Maintenance
Rental properties that offer upgrades and updated appliances are able to command higher rents, so if you’re making an investment in new windows for your rental, it may be a good time to evaluate other potential upgrades.
Once you’ve spent time and money on rental property updates, make sure your property stays in great condition by using a rental property maintenance tool. Your tenants can easily alert you about maintenance issues or any needed repairs, and you can keep track of all your maintenance requests and needs in one place. Learn more about the Avail maintenance tracking feature for landlords.
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