One of the crucial decisions you face as a landlord is whether to rent your property furnished or unfurnished. This choice can significantly impact your rental income, tenant satisfaction, and overall management ease.
At DeSantis Property Management, we understand the complexities involved in this decision and aim to provide you with a clear, practical guide on whether renting your house furnished is the right choice for you.
Benefits of Renting Furnished Properties
Renting a furnished house offers several advantages that can appeal to a variety of tenants. Firstly, it provides convenience, as tenants can move in without the hassle and expense of buying and transporting furniture. This convenience factor often attracts tenants who are relocating for work or studying temporarily, seeking a ready-to-live-in solution. Secondly, furnished rentals typically command higher rents compared to unfurnished properties. This is because tenants are willing to pay more for the added value of not having to invest in furnishings themselves. There are considerations that landlords must carefully weigh before deciding to furnish their rental properties. Initial setup costs can be substantial, as furnishing a house involves purchasing quality items that are durable and attractive to potential tenants. These costs should be factored into your budget and rental pricing strategy.
Additionally, maintaining and replacing furnishings over time can add to your operational expenses. Regular inspections and maintenance checks are necessary to ensure that the furniture remains in good condition, minimizing repair costs and tenant disputes.
Assessing the Worth of Furnishing a Property
Furnishing a property requires a significant investment in furniture and appliances. The question for landlords is whether this investment will pay off through higher rental income and lower vacancy rates. The key is understanding what furnishing a property may entail and assessing if it fits your rental strategy.Implications for Landlords Offering Furnished Properties
Providing a furnished apartment means equipping the space with all necessary furniture and appliances to make it move-in ready. This involves more than just the basics; it includes everything from kitchen appliances to bedroom furniture. Below is a detailed room-by-room guide to what should be included.Room-by-Room Furnishing Essentials
- Kitchen: All large appliances (stove, oven, refrigerator), additional small appliances (microwave, coffee maker, toaster or toaster oven), flatware, dishware, and cooking utensils.
- Bedroom: Bed, dresser, nightstand.
- Living Room: Sofa, coffee table, end table, television.
- Bathroom: Shower curtain and floor mat.
- Dining Area: Table and chairs (place these in the kitchen if there isn’t a separate dining room).
Target Tenants for Furnished Apartments
The decision to rent your house furnished is best suited for landlords who are looking to maximize rental income and cater to tenants seeking convenience and flexibility.
Understanding the market demand for furnished rentals in your area and adjusting your property's amenities and pricing accordingly can help attract and retain desirable tenants.
Understanding who rents furnished apartments and their reasons can help you decide if this option is right for your property.
Advantages of Furnished Properties for Landlords
Higher Rent: You set the rent price higher if a property comes furnished. Tenants appreciate the convenience of not having to purchase and transport furniture, making them willing to pay more for a fully furnished property. Higher Security Deposit: Furnished apartments typically require a higher security deposit to cover potential damage to the furniture and appliances. Less Property Damage: Reducing the probability of property damage and wear and tear from moving heavy furniture in and out. Target Market: Offering furnished apartments helps you narrow down your target market to tenants looking specifically for this type of rental. Diverse Tenant Options: It gives you the ability to advertise to various tenants and provide multiple rental options. Creative Space Use: Furnished apartments are an inventive way to rent out small or awkward spaces that might not be appealing if unfurnished. Staged Appeal: Staging properties with furniture makes them more attractive to potential renters, helping them visualize living in the space.Disadvantages of Furnished Properties for Landlords
Higher Initial Investment: Furnishing some or all of your units means a larger initial investment on your end. This includes the cost of purchasing, maintaining, and potentially replacing furniture and appliances.
Short-Term Tenants: Tenants who want furnished apartments aren’t usually aiming to stay for the long-term, leading to higher tenant turnover and potentially more frequent vacancies.
Unwanted Furniture: Tenants may not want to keep the furniture provided, leading to possible conflicts or the need to store unwanted items.
