Are you a landlord contemplating whether to rent out your rental property furnished or unfurnished? It's a decision that many landlords consider, and it can be challenging. In this guide, we'll explore the pros and cons of renting your home furnished to help you make an informed choice.
Furnished rentals can attract a broader pool of tenants, offer the potential for higher income, and provide move-in convenience. However, they come with higher initial costs, ongoing maintenance, and the challenge of wear and tear. Understanding these aspects is crucial.
Whether you're aiming for convenience or seeking higher rental income, this blog post will empower you to make the right decision for your situation when considering renting your property.
Who Are the Renters of Furnished Apartments and Why?
Furnished apartments appeal to a diverse range of renters for various reasons. Let's delve into who rents a furnished apartment and why:
Corporate Professionals and Business Travelers
Corporate professionals and business travelers often seek furnished apartments to rent. They appreciate the convenience of a fully equipped space that feels like home, especially during extended stays.
Furnished apartments offer a comfortable living environment, often close to business centers, making them an ideal choice for those on work assignments.
Relocating Individuals and Families
Tenants who are in the process of relocating, whether for a new job, family reasons, or other life changes, often turn to furnished apartments to rent.
These temporary living arrangements provide stability and comfort during the transition period, allowing individuals and families to settle into their new surroundings without the immediate need to purchase furniture.
International Students
International students studying abroad often opt for furnished apartments to rent. These tenants typically have limited time and resources to furnish an entire apartment.
This makes the fully furnished option an attractive and hassle-free choice. Furnished apartments also help students adapt more quickly to their new environment.
Short-Term Renters
Furnished apartments are favored by short-term renters who may only need housing for a few months. This includes people undergoing medical treatments, visiting for internships, or taking a sabbatical.
The flexibility of a furnished apartment eliminates the need to commit to a long-term lease and the burden of acquiring and moving furniture for a short stay.
Retirees and Snowbirds
Retirees and snowbirds, individuals who migrate to warmer climates during the winter months, often opt for a furnished rental.
These tenants appreciate the freedom to enjoy seasonal or part-time living without the responsibility of maintaining a second home.
Remote Workers
Digital nomads who work remotely and often travel while doing so are increasingly choosing a rental with provided furniture.
They value the flexibility of a furnished rental property, allowing them to live comfortably in different locations without the burden of furnishing and moving their belongings each time they relocate.
Convenience and Simplified Living
Lastly, many renters, regardless of their specific circumstances, choose a furnished rental property for their sheer convenience and simplicity.
These apartments eliminate the stress and expense of furniture shopping and moving, allowing tenants to focus on other aspects of their lives.
Pros of Renting Your House Furnished
Higher Rental Income
One of the most appealing advantages of renting a furnished house is the potential for higher rental income.
By furnishing your property, it generally commands higher monthly rents than their unfurnished counterparts. Why? Because tenants are willing to pay a premium for the convenience of moving into a fully equipped home without the hassle of buying and moving furniture.
Attracting a Broader Tenant Pool
Furnishing your rental property appeals to a broader range of tenants. By offering a furnished option, you open your property to a more diverse pool of potential tenants, increasing your chances of finding the right fit sooner.
Reduced Tenant Turnover
By furnishing your rental, you may experience lower tenant turnover rates. Tenants who move into rental homes supplied with furniture are less likely to uproot their lives frequently.
They appreciate the convenience and stability of a fully furnished living space, which can lead to more extended lease agreements and reduced vacancy periods.
Shorter Vacancy Periods
A vacant property can drain your finances, but furnishing your rental can help shorten vacancy periods. Furnished homes are often more attractive to tenants and can be marketed as move-in ready, allowing you to fill vacancies faster.
Tax Benefits
Depending on your location and tax laws, as a landlord you may be eligible for certain tax benefits if you rent your property. Consult a tax professional to explore potential deductions or credits to help offset the costs of furnishing your rental.
Cons of Renting a Furnished House
Initial Cost and Maintenance
Furnishing a rental property can be a significant upfront expense. Landlords need to purchase furniture, appliances, and other necessary items, and you'll also be responsible for maintaining and replacing these items as they wear out or break.
Higher Wear and Tear
Furnished rental properties typically experience more wear and tear compared to unfurnished ones. Tenants may not treat the furniture and appliances as carefully as they would their own, leading to increased maintenance and replacement costs, that can be avoided with an unfurnished rental.
Limited Personalization
Furnishing your rental limits a tenants' ability to personalize the space entirely.
Some tenants may be hesitant to rent a furnished property because they prefer to decorate and arrange the space to their liking. In this case an unfurnished rental would be more suitable.
Potential for Damage
When renting a furnished property, there's always a risk of damage to your furniture and belongings. While a security deposit can help mitigate this risk, they may not cover the full cost of repairs or replacements in case of significant damage.
Ongoing Expenses
Furnished rentals come with ongoing expenses that an unfurnished properties do not. Landlords need to account for the cost of maintaining and replacing furniture and the time and effort required for regular inspections and cleaning.
Conclusion
So, should you rent your home furnished? It depends on your circumstances. Furnished rentals offer higher income and a broader tenant pool but come with upfront costs and maintenance. Consider your finances and target tenants.
Consulting the experts at a property management company like House In Order Property Management can help you make informed choices that align with your goals.
