If you’re a landlord, you’ve probably toyed with the idea of offering furnished properties to renters. Maybe you’re stuck with a property that’s already furnished and don’t want to deal with selling it. Perhaps you have a property in a college town or tourist town where there’s a high “transient” population who would benefit from furnished property. Maybe you just want to work on your interior design skills and this is a great avenue for it.
There are certainly obvious downsides to offering furnished properties, such as the potential for wear and tear, but don’t overlook the many benefits. Plus, if you have a property manager on your side, they can help ensure your property (including the furniture) is well cared for by each tenant. If you’re still on the fence, consider these potential upsides to going furnished:
1. Higher rent
Landlords don’t offer furnished properties just to be nice, they do it as leverage to demand higher rent. Depending on the quality of the furniture and how in demand the property is, you can easily get a couple (or more) hundred dollars per month when you offer it furnished. That can make the difference between passive income, breaking even or at times even taking a loss on a rental.
2. Less Property Wear and Tear
Even the most careful of tenants might scratch the wood floors, but a ding in the wall or otherwise decrease the property’s value when moving in and out heavy furniture. If it’s already furnished, that’s not an issue. Leasing furnished properties is actually a great way to protect the apartment, condo or house itself.
3. Quicker Turnover
If you expect your property to have regular turnover, it can be simpler when the furniture is already there. When a tenant moves all the property out, including furniture, that can mean re-painting the walls from dings, which in turn causes a costlier turnover for you and more time off the market. An empty property while it gets whipped into shape is a nightmare for any landlord.
4. Appealing to your Demographics
If you already know your market is college students, vacationers or other tenants who won’t be there long, you need to give them what they want. Oftentimes, the property itself isn’t enough, so sweetening the deal with furniture can do the trick. However, make sure to update the furnishings on a regular basis (at least every five years) to really get the best rental rates and tenants.
5. Better Showings
There’s a reason the best properties have model homes: It makes potential tenants feel like they already live there. This means less vacant days for you.