If you’re looking for ways to make your rental property stand out – as well as strategies for charging higher monthly rent – you may have considered offering furnished units. But, while doing so could be more enticing for potential tenants, it may or may not necessarily be the best or most cost-effective way to go for you.
Over the past decade or so, “staging” properties for sale (i.e., showing the property furnished) has become popular with home sellers and real estate agents. One reason for this is because properly-placed furniture can help potential purchasers to “see” themselves living in the home.
The same could hold true when presenting a unit for rent – particularly if the rental will not be the tenant’s permanent home. For instance, a businessperson may be seeking temporary housing in your area, while keeping their full-time home elsewhere.
With that in mind, offering units that are already furnished can be convenient for tenants. It can also allow you to charge more in monthly rent. That being said, your out-of-pocket costs could increase, too, due to necessary repair or replacement needs.
Pros and Cons of Renting Properties that are Furnished
|Advantages of Renting Furnished Units||Disadvantages of Renting Furnished Units|
|Can typically charge more rent||Added cost of furniture|
|Convenient for tenants – especially those who are transient||Cleaning and/or repair expenses|
|Easier to “stage” the property when it is vacant||Need to replace furniture due to wear and tear and/or tenant damage|
|Potential tax deductions for the cost of furnishings||Potential for theft or vandalism|
|May be able to fill vacancies more quickly|
Before moving forward with the purchase of furniture for your rental property(ies), be sure to consider all of the potential pros and cons. That way, you’ll have a better idea regarding what to anticipate.
If being a landlord is taking up more time and effort that you initially anticipated, it might be time to consider bringing a property manager on board. That way, you can easily delegate a long list of tasks – such as marketing and showing property, responding to emergencies and other repair needs, collecting rent, and dealing with issues like evictions – and focus more on other matters.
For properties that are located in Orlando and/or the Central Florida locale, give us a call and we’ll answer any of the questions you have regarding the role of an experienced property management team and how it could benefit you.