Should I Rent My House Furnished?

Key Takeaways:

• Furnished Rentals Can Command Higher Rates: Landlords can typically charge 15-20% more for a furnished rental, plus a higher security deposit to cover potential damages. This can lead to increased cash flow and a strong return on investment.
• More Maintenance and Upfront Costs: While a furnished rental can attract tenants more easily, it also requires a larger initial investment in furniture and appliances, along with ongoing maintenance to keep everything in good condition.
• Appealing to the Right Tenants Matters: Furnished rentals are often more attractive to short-term renters, which can lead to higher turnover. Choosing neutral, well-designed furniture can help appeal to a broader range of tenants.

Are you thinking about renting out a property in Central Florida? You should go for it! Rental properties are a great investment. They can allow you to earn a steady income, while also growing your long-term wealth.

If you previously lived on the property you’re trying to rent, you may be considering renting it as is, furniture included. Many tenants are looking for fully furnished rentals, especially if they’re planning to stay for short terms. Renting out a furnished house can give you a competitive advantage over other properties in the market. However, furnished rentals aren’t for everyone.

As a landlord, you need to learn to adapt your property to market trends, otherwise you won’t be able to fill your vacancies quickly. If you’re wondering whether you should rent your property furnished, you’ve come to the right place! Keep reading to learn the pros and cons of furnished rentals from the experts at Central Florida Property Management.

Everything a Furnished Rental Should Include

When tenants hear the words “furnished rental,” they assume the property will come with everything they need for their day-to-day lives.

Whether you’re trying to attract long-term tenants or short-term renters, providing the right furnishings and essentials ensures comfort, convenience, and a better rental experience. Here’s what every furnished rental should include:

Bedroom Essentials

• Bed and Mattress: A comfortable bed is non-negotiable and a quality mattress enhances tenant satisfaction.
• Bedside Table and Lamps: Tenants need a place for books, phones, and other essentials, while a lamp provides convenient lighting.
• Ample Storage: Built-in closets and dressers prevent clutter and keep the space organized.

Living Room Must-Haves

• Ample Seating: A comfortable couch makes the living room more inviting and functional.
• Coffee Table and Side Tables: A nice coffee table makes the space more cozy and functional. Additionally, side tables provide surfaces for drinks, books, or décor.
• TV and Entertainment: A smart TV and a streaming device add value and entertainment options for tenants.

Dining Area

• Dining Table and Chairs: A designated dining area is essential, even in small spaces. A sturdy table encourages proper meals and socializing.
• Tableware: If you’re planning to rent your property for short terms, you should provide tenants basic dining essentials for everyday use, such as plates, bowls, cups, and cutlery.

Kitchen Essentials

• Basic Appliances: Tenants will expect appliances such as the fridge, stove, microwave, oven, coffee maker, and toaster.
• Cookware: Short-term renters want to prepare meals conveniently, so providing pots, pans, and basic kitchen utensils is key.

Bathroom Necessities

• Shelves or Vanity Space: Tenants need space for toiletries and personal care items.
• Shower Curtains: A nice curtain can make the space more inviting while also preventing water damage.
• Towels and Toiletries: Provide at least a set of fresh towels and basic hygiene products for short-term rentals.

Additional Comforts

• Cleaning Supplies: Providing a mop, broom, vacuum, and plenty of trash bins will encourage tenants to keep the space in good condition.
• Bedding and Extra Linens: Spare sheets, pillowcases, and blankets add comfort and convenience.
• Wi-Fi and Entertainment: Providing high-speed internet or streaming services can make the property much more attractive to tenants.

The Pros

There is a high demand for furnished rentals. By providing all the essentials tenants will need for their day-to-day lives, you can enjoy the following benefits:

• Higher Rental Rates: On average, landlords charge 15 to 20 percent more for a fully furnished rental property. Additionally, furnished rentals command a higher security deposit to cover the cost of potential damages.
• Less Wear and Tear: When you rent your property furnished, you don’t have to worry about damages caused by moving heavy furniture. There will be no more scraping or banging on your property’s walls, floors, and trims.
• Easier Property Marketing: By choosing furniture that compliments your property, you can make it stand out from the rest, making it more appealing to prospective tenants.
• High ROI: Furnished rentals can provide a higher income, which increases your cash flow. Additionally, as a landlord, you can deduct a percentage of the cost of the furniture for tax purposes, increasing your bottom line.

The Cons

While renting a furnished house or apartment has plenty of benefits, it also comes with a lot of responsibilities. Here are the downsides of renting a furnished property:

• Bigger Upfront Investment: Buying new furniture and quality appliances for your rental requires a big upfront payment. Plus, you may have to invest in new furniture every couple of years to keep the property appealing to tenants.
• Damaged Furniture: Day-to-day use can damage furniture and appliances over time. This can result in higher maintenance costs.
• Decreased Tenant Appeal: Certain design choices can drive prospective tenants away. If tenants don’t like the furniture you’re providing, they’ll simply turn around and keep looking for other places to rent.
• Shorter Tenancies: Furnished rentals are typically more appealing to short-term renters. While there are plenty of long-term tenants looking for furnished units, it’s not always easy to find them. You’ll have to work harder to fill your vacancies.

Bottom Line

Owning a furnished rental property can be a great investment. Furnished properties typically command higher rates and attract a wide pool of tenants, meaning that you’ll be able to recover your initial investment in a shorter span of time. However, maintaining a furnished rental requires more time and effort, as well as a bigger initial investment.

If you need help managing a furnished rental, Central Florida Property Management! Our team can help you find quality tenants to protect your investment.