Should I Rent My House Furnished?
In such a competitive market, landlords are looking for ways to attract tenants to their properties and keep them on for the long term. Landlords must learn to adapt to match tenants’ wants and needs in order to secure quality tenants.
One particular amenity that tenants look for is a furnished rental. This suits short to mid-term renters who will stay in the neighborhood for a while and don’t have to worry about the hassle of finding furniture that suits their needs.
In this article, the team from get MULTIfamily Property Management goes into detail about the benefits and downfalls of renting your property fully furnished.
What Is Considered a Furnished Unit?
A furnished unit is a rental where the property owner provides most of the basic furniture required on the property. There are some bare minimum requirements that each property should have if it considers itself a furnished apartment:
Kitchen: Stove, Refrigerator, oven, coffee marker, toaster, and other small appliances
Living room: television, coffee table, and sofa
Bathroom: Overhead shower unit
Dining area: Dining set of table and chairs
Who Is the Target Demographic?
From our experience in the local property market, furnished units are the ideal spaces for professionals, young families, students, and tourists.
These groups of people represent those who want to stay in town for a few months and would not be interested in investing heavily in the look of the property. In addition, they don’t want to stay in a hotel as it would be too expensive.
Advantages of a Furnished Rental
Higher Rental Price
The first advantage of choosing to have a furnished unit is the rental pricing. Due to the convenience that your furnished apartment offers, most people are willing to pay a higher price for the convenience offered by your rental property.
Before you put your furnished property on the market, make sure that you conduct your research to see what your competitors are offering both in terms of rental pricing and amenities.
Every rental property is usually unique in terms of amenities it offers that contribute to the experience and rental pricing per month. By doing research in the area and understanding what other properties cost, you can ensure that your property stands out in terms of price and furnishings.
Higher Security Deposit
You will need a higher security deposit to give you some peace of mind should a tenant break any of the provided furniture. Renters are usually willing to pay a higher deposit for the convenience of an already furnished rental.
Consult an expert property professional, like get MULTIfamily Property Management, to guide you on the laws surrounding the security deposits for furnished apartments in the area.
Lower Property Damage
Damage to the property is frequent on a moving day. Furniture and appliances can bang on the walls and surfaces leading to scrapes throughout the property. The less furniture gets moved around, means the fewer repairs you will have to make to the property. It also limits the stress of telling the tenant that their security deposit will cover the repairs.
As we mentioned earlier, the market for furnished units is quite specialized. Once you have identified the presence of a demographic in the area, you can comfortably launch your new property project with a customized marketing plan.
For example, if you’re investing in a college neighborhood, you would want to ensure your furnishing includes a desk and study space. However, you may not need things like a highchair.
Ideal for Small Spaces
Choosing to furnish smaller units can be a great solution to rent out a smaller space. With the correct furniture and décor placement, you can convert the space into the dream of every short-term visitor to the area.
Keep your target audience in mind, and try to provide the absolute necessities so that the space doesn’t feel small.
Disadvantages of Furnished Units
More Costly Upfront
A furnished rental requires more investment upfront. You must provide the furniture and keep up with the maintenance.
You need to put significant resources and time into the furniture and décor in order to create the experience you are trying to sell.
Due to the nature of renting furnished units, you can expect tenants who want to sign a short-term agreement. Most furnished apartment owners use month-to-month leases with their tenants.
While you might be able to collect a higher rental pricing every month, you will have to continuously market your property in order to gain a steady stream of tenants.
While furnishing a rental can help reduce moving damage, it does mean you will have to pay for the upkeep of the furniture in the unit. Should tenants damage your items beyond normal wear and tear, they will need to be replaced promptly and possibly at the tenant’s cost.
Do you need more information on the benefits and disadvantages of renting your house as a furnished apartment? The experienced and professional team at get MULTIfamily Property Management is here to help you out. We have years of experience guiding property investors in the area and can give you the advice you need.
Get in touch with us today!