Are you considering renting out your house? Whether your renting it as a short-term or long-term rental, one of the most important decisions you have to make is whether to rent your home furnished or unfurnished.
It can be a difficult decision since several factors come into play. This blog post might benefit you if you’re torn between the two possibilities and need guidance on which route to take. Here we, at Realty Management Associates discuss all the pros and cons associated with furnishing a rental property, as well as tips on how to do it successfully so that both landlords and tenants benefit in the end!
Have a Checklist if Renting Out a Furnished Apartment
Usually, landlords do not know where to start at the time of furnishing an apartment. To make it easier for them, here is a checklist that can help ensure that the furnished apartment has all the essentials:
Living Room
The living room should include a couch, at least one armchair, an end table, and a coffee table. Of course, you can also provide other accent pieces like lamps, rugs, pictures, and artwork for additional visual appeal.
Kitchen
In the kitchen, essential cookware such as pots, pans, and utensils should be included. Providing other essential items like silverware, plates, and glasses for everyday use is also a good idea.
Bathroom
Many landlords opt not to include furniture pieces in the bathroom; however, it’s still important to provide essential items such as bathmats, shower curtains, and hangers for towels.
Bedroom
The bedroom should have either a bed frame with a mattress or without the mattress, depending on what you are comfortable providing. Consider also including other furnishings like a bedside table, shelving, and a dresser to provide storage and organization.
What are the Benefits of Renting Your House Furnished?
Generate Higher Rental Income
You can charge a higher rent by providing furniture and other amenities. You have the potential to make more money in the long run by furnishing your property if you invest in the right furnishings and maintain them properly.
Attract Key Tenant Demographics
Renting out your furnished house will provide tenants with an immediate home, allowing them to move in quickly and enjoy their new place of residence. This convenience will surely attract more tenants than if the property was unfurnished.
As a bonus, your tenant won’t have to worry about moving heavy furnishings from one place to another. This can save them time, energy, and money.
Higher Security Deposit
Renting your house furnished can require a larger security deposit. The cost to repair or replace furniture if it’s damaged or stolen can add up quickly. A higher deposit amount will incentivize the tenant to take better care of the furniture and property and will also help offset repair costs in the event of an accident.
Limited Target Market
The target market for a furnished home is limited, as only some people need or want furniture provided for them. When you advertise your furnished rental, it will be easier for you to target a specific market. This way, you can save time and property marketing expenses.
Less Chance of Damage
Furniture, appliances, and decorations all add to the value of a home and can protect against damage from regular wear and tear. Having these items moving in and out of the house makes it less likely that tenants will be able to damage walls, floors, and other expensive items.
What are the Drawbacks of Renting Your House Furnished?
Costly Repairs
There is an increased risk of damage to furniture and appliances. Since the tenants are not responsible for furnishing the rental, they may be less inclined to take care of the items provided. This could lead to costly repairs or replacements if damaged.
Frequent Screening
Since renters looking for furnished apartments tend to only stay for a short time, landlords must do more frequent screenings to find new tenants. This could take a lot of time and money as you will have to advertise your rental more often and conduct multiple interviews.
Initial Investment
Outfitting a rental with furniture and appliances requires landlords to spend more money than if you were renting an unfurnished unit. You must carefully consider the cost of furnishing a rental, as this will increase your initial investment.
How Is My House Suitable for Furniture Rental?
There are a few important things to consider when determining if your house is suitable to be a furnished rental. Ask yourself:
Is the Rental Located Somewhere with Demand for Furnished Units?
When looking for a location, look for properties near a college or university, as they make great candidates for furnished apartments. You can also invest in properties in major business or tourist areas.
What Kinds of Amenities Should I Include?
It’s essential to include key amenities that will help attract tenants. This includes furniture, appliances, and other basics like linens and kitchenware. Some amenities that may be attractive to tenants include internet access, cable or streaming services, air conditioning, or a balcony or patio.
Are Tenants Interested in a Furnished Apartment in Your Area?
If you plan to rent out a furnished apartment, you must first ensure there is demand in your area. Research what types of tenants are looking for furnished apartments and how much they are willing to pay. It’s also essential to research the competition in your area and make sure you can offer something unique.
Bottom Line
Renting your furnished property can be a great way to make extra money and increase the value of your property. However, there are a few considerations to keep in mind. Make sure the furnishings will meet the needs of your tenants and that you are comfortable with the terms of the rental agreement. Additionally, consider the costs of furnishing your home and the potential maintenance expenses associated with renting it furnished.
If you’d like help managing your rental properties, contact Realty Management Associates today!