Should You Furnish Your Rental Property?
Deciding whether to furnish your rental property can be tricky. Each approach, furnished and unfurnished, has advantages and challenges.
What’s the verdict? Should you furnish your rental property? Let’s explore the factors that will influence your decision.
What Is a Furnished Rental Property?
A furnished rental property typically includes basic furniture and appliances. This might involve sofas, beds, tables, and chairs. Some rentals even offer more comprehensive setups, including decor and bedding.
On the flip side, unfurnished rentals leave the responsibility of furnishing up to the tenant, apart from built-in fixtures such as the sink and stove.
The decision to furnish ultimately depends on the type of tenant you are targeting and your long-term financial goals.
Pros of Furnishing Your Rental Property
High Rent Potential
Furnished properties generally command higher monthly rent than unfurnished properties. Many tenants will pay a premium for the convenience and flexibility of moving into a property that’s ready to live in. This can significantly boost your return on investment, especially in urban areas or near universities.
Easy To Market
A well-furnished property tends to stand out in online rental listings. High-quality photos showcasing attractive furniture and decor can make your property more appealing and improve your chances of securing tenants quickly.
Attracts Short-Term Renters and Niche Markets
Furnished properties appeal to demographics such as corporate employees, travel nurses, and students working in locations for a short period of time. These tenants may not want the hassle of purchasing and transporting furniture. Therefore, a furnished rental is the perfect fit for these individuals.
Cons of Furnishing Your Rental Property
High Upfront Costs
One of the biggest downsides to furnishing your property is the upfront investment. Quality furniture and appliances will cost you, and cutting corners often requires increased maintenance expenses. And even if you find amazing deals, it’s still a cost that can eat into your cash flow.
For instance, buying a living room set is a good investment that comes with a bundled price. Just keep in mind that the initial cost can be hundreds of dollars.
More Wear and Tear
With tenants routinely using your furnishings, wear and tear is unavoidable. Items including sofas, beds, and chairs will demand routine cleaning and prompt repairs. If you skip regular care, you’ll find it harder to command the increased rent your furnished unit deserves.
Increased Turnover
Rentals with furnished units are likely to experience high tenant turnover. While this could lead to increased earnings, frequent tenant changes may also mean more time and money spent on marketing and preparing the property for the next renter.
Now that you know the pros and cons, are you still unsure if you should furnish your rental property? Experiment by putting a furnished rental on the market for a year. Gather valuable feedback from tenants and determine if it’s worth replicating with other properties.
Whichever furnishing route you choose, the key is understanding your market and positioning your rental to meet tenant expectations.
