Renting out a furnished home can be a great way to generate additional income and make use of a property that may otherwise sit unused. However, it's important to carefully consider the pros and cons of furnishing a rental property before making the decision. We at Rollingwood Management Inc. have put together some things to consider when deciding whether or not to furnish your rental home.
What Does a Furnished Apartment Mean?
When a rental is described as furnished, it means that the required furniture will be present in each room, making the experience for the renter practically turn-key. The living area will include the right furniture, including a couch or sofa, a coffee table, floor and ceiling lighting, and perhaps even paintings.
A mattress, bed frame, dresser, and maybe nightstands are included in bedrooms. There might be sheets on the bed, but that isn't always the case.
Additionally, the kitchen should be fully equipped with everything needed to prepare a meal, even for the renter residing in the home, including cutlery, plates, bowls, glassware, and pots and pans.
Pros of Renting a Furnished Home for Landlords
Convenience for renters: One of the main advantages of renting a furnished home is that it can be very convenient for renters . Moving into a new home can be a stressful experience, and having to worry about buying or transporting furniture can add to that stress. By providing a fully furnished home, you can make the transition easier for your renters and potentially attract a larger pool of potential tenants.
Higher rent: Furnished homes often command higher rent than unfurnished homes. This is because renters are willing to pay a premium for the convenience of not having to worry about furnishing the home themselves. Furnishing your home may be a good option if you're looking to maximize your rental income.
Potential for short-term rentals: Renting a furnished home can also be a good option if you're interested in renting out your property on a short-term basis, such as through a vacation rental platform. Furnished homes are in high demand for tourists and travelers who are looking for a convenient place to stay while on vacation.
Attracts a wider range of renters: Furnished apartments can attract a wider range of renters, including students, tourists, and travelers, as well as professionals who may be relocating for work or who are in between homes. This can help you find a tenant more quickly and potentially increase your chances of finding a reliable, long-term tenant.
Flexibility to target different types of renters: Furnishing a rental property can also give you greater flexibility to target different types of renters. For example, you may choose to furnish the home with more luxurious or high-end furniture if you're targeting professionals or vacationers, or you may opt for more budget-friendly options if you're targeting students or those on a tight budget.
Simplified move-out process: Furnishing a rental property can also simplify the move-out process for renters. They won't have to worry about finding a place to store their furniture or selling it before moving out, which can be a hassle and a major expense. This can be especially appealing to renters who are moving out of the area or who don't want to deal with the hassle of moving and storing furniture.
The Cons of Furnished Apartments for Landlords
While there are many benefits to furnishing an apartment as a landlord, there are also several potential drawbacks to consider. Some of the main cons of furnished apartments include:
Upfront costs: Furnishing an apartment can be expensive, especially if you're starting from scratch. You'll need to purchase furniture, appliances, and other household items, which can add up quickly. This is an important consideration if you're on a tight budget or unsure how long you'll be renting out the property.
Maintenance and replacement costs: Furniture and appliances will wear out over time and will need to be replaced. This can be an added expense that you'll need to factor into your budget. You'll also need to maintain the furniture and appliances to ensure they're in good working order, which can be time-consuming and costly.
Potential for damage: Furnished apartments are more vulnerable to damage than unfurnished apartments. Renters may not take as good care of your furniture and appliances as they would if they owned them themselves. This can lead to costly repairs or replacements.
Limited appeal to some renters: While some renters may appreciate the convenience of a furnished apartment, others may not want the added expense or may prefer to furnish the apartment themselves. This can limit the pool of potential tenants and make it harder to find someone to rent your property.
Increased risk of theft: Furnished apartments are at a higher risk of theft, as there are more valuable items on the premises. This can be a concern if you're renting to strangers or if you're in a high-crime area.
Limited control over the appearance of the apartment: By furnishing the apartment, you have less control over the appearance of the space . Renters may not care for the furniture or appliances in the same way that you do, which can lead to wear and tear or damage over time.
Potential for disputes over furniture: There may be disputes over the use and care of the furniture, especially if multiple renters are living in the apartment. This can lead to tension and conflict between the renters and may require additional time and effort to resolve.
Potential for legal liabilities: If something goes wrong with the furniture or appliances, you may be liable for any injuries or damages that result. It's important to carefully review your insurance coverage and consider any potential liabilities before furnishing an apartment.
Overall, whether or not to furnish your rental home is a personal decision that depends on your individual circumstances and goals. If you're willing and able to invest in furnishing the property, it can be a great way to generate additional income and attract a larger pool of potential tenants. However, it's important to carefully consider the costs and potential drawbacks before making the decision.
Making crucial decisions like whether or not to furnish your rental property can be challenging for landlords. Employing a reputable property management company like Rollingwood Management Inc. can therefore assist landlords in knowing what to do.
At Rollingwood Management Inc., we are committed to giving landlords comprehensive property management options. Our team of property managers will take good care of your investment properties.