If you’re a homeowner who’s been considering renting out your property, you may be wondering whether you should furnish it or not. It’s a common dilemma that many landlords face, and there’s no right or wrong answer.
In this post, we’ll explore the pros and cons of renting your house furnished, and hopefully, help you make an informed decision.
What to Include in a Furnished Rental
A furnished property is a type of rental where the landlord provides most, if not all, of the furniture for the unit. However, the definition of “furnished” can vary, and it’s up to the landlord to decide what to include.
Typically, furnished apartments should have large kitchen appliances, small appliances, cookware, flatware, and dishware, as well as bedroom furniture and a sofa, coffee table, end table, and television in the living room.
Some landlords may also choose to include additional items like artwork, stereo systems, and alarm clocks. Ultimately, the decision on what to include in a furnished apartment is up to the landlord, but it’s important to keep in mind what potential renters may be looking for in terms of convenience and amenities.
Before you make a decision about renting out a furnished unit, it’s essential to consider a few factors:
Type of Tenants
If you’re renting to short-term tenants such as vacationers, students, or contract workers then a furnished house may be a better option as they’ll appreciate the convenience of not having to bring their own furniture.
On the other hand, long-term tenants may prefer an unfurnished house as they already have their own furniture and prefer to personalize their living space.
Another factor to consider is the rental market in your area. If there’s high demand for furnished rentals, you may be able to charge a higher rent and attract more tenants. However, keep in mind that furnishing your house can be expensive and may not always result in a higher return on investment.
Level of Maintenance
It’s also essential to think about the level of maintenance required for a furnished rental. You’ll need to take extra care of the furniture and may have to replace items more frequently due to wear and tear.
Pros of Furnished Units for Landlords
Let’s take a look at the various advantages of offering a furnished apartment for rent:
Higher Rental Income
One of the most significant advantages of offering a furnished unit is that you can charge a higher rent. Furnished apartments provide convenience and save tenants the cost of buying furniture, so they are willing to pay more for that convenience.
Attracting a Wider Range of Tenants
Furnished apartments tend to appeal to a variety of renters, including students, people on temporary work contracts, and tourists who are looking for a place to stay short-term. By offering a furnished unit, you can attract a wider range of potential tenants and increase the demand for your property.
Reduced Moving Costs and Damages
Moving heavy furniture can cause damage to floors, walls, and doors. By offering a furnished unit, tenants don’t have to worry about moving their own furniture or risk causing damage to their property. As a result, you can save on maintenance and repair costs and they can save on moving costs.
Furnished properties make marketing easier since they tend to look more attractive in photos and videos. This can help your property listing stand out from the competition and attract more tenants.
Cons of Furnished Units for Landlords
While offering a furnished unit for rent has its advantages, there are also several disadvantages that landlords should be aware of before making a decision:
Higher Upfront Costs
One of the biggest disadvantages of offering a furnished unit is the upfront cost. Furnishing a unit can be expensive, and it may take some time to recoup those costs through higher rent. Additionally, there is always the risk of damage to the furniture or appliances, which can add to the cost of upkeep.
Maintaining a furnished unit can also be more time-consuming and expensive. Landlords may need to spend more time cleaning and repairing the furniture and appliances and may need to replace items more frequently due to wear and tear.
While offering a furnished unit can be a way to target a specific market, it can also limit and result in more tenant turnover. Many tenants attracted to furnished units are looking to stay short-term so you’ll like to see more tenant turnover.
Higher Insurance Costs
Furnished units may also require higher insurance costs, as there is more property at risk in the event of damage or theft. This can add to the overall cost of renting out a furnished unit.
Offering a furnished unit can come with more restrictions on the lease agreement. Landlords may need to include specific clauses about the use and upkeep of the furniture and appliances and may need to restrict certain activities that could lead to damage. This can make the lease agreement more complex leading to more disagreements with tenants over the terms of the lease.
Renting out a furnished house can be a great way to attract tenants and make your property stand out from the competition. However, it’s important to carefully consider the advantages and disadvantages before making a final decision. Ultimately, the decision to rent your house furnished or unfurnished depends on your personal goals and preferences as a landlord.
Regardless of what you decide, it’s best to work with a reputable property management company like Home Choice Property Management. With our expertise, you can be sure that your property will be well-maintained, advertised effectively, and attract the right tenants. Don’t hesitate to contact us to learn more about their services and how they can help you maximize your rental income!