Should I Rent My House Furnished?

New landlords may be trying to decide whether to invest in furnishing their rental units. As more niche markets have developed and want different things, it can be overwhelming to think about what to offer tenants.

In the past, it was sufficient for landlords to provide free utilities. But with the plethora of services available and evolving needs of the market, you want to offer a lot to renters to attract them to your property.

Renters find furnished rentals convenient, so more landlords decide to furnish their units. It’s less costly for the renters to move since they don’t have to carry the bulk of their belongings. Furnished units also attract short-term residents so having everything essential on hand makes the space more comfortable.

But is it cost-effective for landlords to provide a furnished rental place?

How Furnished Units Look to a Landlord

When we talk about furnished rentals, we expect that all furniture is in place. However, the landlord still has the last say over what items to issue. In general, a furnished unit appears like the following:

● A kitchen is equipped with a stove, oven, refrigerator, dishware, and cooking utensils
● A bedroom has a bed, nightstand, and dresser
● The living room contains a sofa and coffee table
● The bathroom displays a shower curtain and floor mat
● Th dining area comes with tables and chairs

Target Market for Furnished Homes

Furnished rentals are appealing to several market segments, such as tourists, students, and businesspeople temporarily staying in a certain area. Rentals that are furnished are often preferable compared to hotel rooms since they cost less, especially if you’re looking to stay for a long-time frame but not necessarily more than a year.

living room with couch and bookshelf

With furnished rentals, residents are no longer pressured to save up and budget for furniture so it can lead to more savings. It’s also hassle-free to transfer to a furnished rental space. Typically, the target market prioritizes convenience. Hence, they seek to rent a furnished rental.

What are the Advantages of Furnished Apartments for Landlords?

1. You can increase the rent price for furnished homes

Given that renters can move in faster, you can set the rental price higher. Convenience is taken into account but before assigning a rate, it’s always best to perform research and check out the prices of similar rentals around your neighborhood.

It’s vital that the rental fee can pay for the furnishing you’re providing but don’t get carried away and price it too high. You might need to do a trial and error to determine the right rental fee to charge.

2. You can protect your rental from the damage caused by bulky furniture when a renter moves in

A great thing about furnished units is that they’re not subjected to a lot of damage during the first day a renter transfers. There’s no heavy furniture to lug around and rearrange so any scratches, marks, and dents are avoided. You won’t need to hire someone to retouch the paint or remove the scuff marks on your flooring.

3. It’s easy for you to focus on a market niche

Since furnished units attract particular market segments, you’ll find it easy to serve your preferred demographic.

people going in for a cheer

Figure out which market you aim to attract. Is it students, tourists, or business people? Knowing which group to target makes it easy to create ads and develop a marketing plan.

4. It’s acceptable to request a higher security deposit

With furnished units, a landlord needs to protect them more. They can ask the renters to hand in a higher security deposit. Landlords can only deduct for damaged items beyond wear and tear. Otherwise, they need to pay for the repair or replacement of an item. Writing this down in the lease agreement minimizes future disputes.

5. You can stage your rental which offers more appeal to potential renters

When you have the option to furnish your rental space, it helps you amplify your visuals to attract more prospective residents. Capturing photos of staged homes and adding them in your ads engages more interest.

What are the Disadvantages of Furnished Homes for Landlords?

1. A furnished unit carries risk as an investment

When you furnish your rental, the risk of exposure to damage is also high. It requires you to perform regular property inspections and preventive maintenance so the rental is in a superb state. These strategies help to lower the risk. Another way to reduce it is by asking for a substantial security deposit.

2. Furnished homes attract short-term renters

Typically, furnished units tend to appeal to those looking to rent for a short period. Landlords must intensify their marketing efforts to avoid vacant rental spaces.

3. Some tenants may request to remove some items

Not all renters will want the furnishings you provide in the rental. They may request not to keep some and you’ll need to find a place to store these furnishings.

two people unpacking moving boxes in a kitchen

It may also require you to rent an additional storage room where the furniture can be kept, which means additional paying additional fees.

Is Furnishing Your Rental the Right Decision?

Before deciding to furnish your rental home, you need to evaluate your location first. Is the rental situated in a college town, local attractions, or a business district? This makes it easy for you to work out which demographics to attract.

Ensure that the rental rate you charge is reasonable given the features you provide before you invest in furnishing the unit. You also need to match the furnishings based on the market you plan to attract.

Bottom Line

Furnished homes offer plenty of advantages, such as increased rental prices, reduced property damage upon move-in, and more focus on who to serve.

But it also has drawbacks, like more risk exposure from repetitive use of furnishings and attracting short-term renters. In the end, you need to decide to furnish your unit depending on your location and potential market.

Are you looking for a trusted property manager to handle your rental space? If yes, contact McKenna & Vane Property Management today!