It’s a common question for landlords to ask if renting furnished vs unfurnished apartments is a good idea or not. The truth is, it is in some circumstances, and it is not in others. You’ll have to consider your market, how much you’re willing to invest, and some other factors before jumping into it.
In this article, we’re going to discuss renting a furnished vs unfurnished apartment and what it all entails.
Many landlords wonder whether renting a furnished apartment is a possibility. The answer is an absolute yes. You can absolutely rent your house with furniture in it. But, if you are planning on doing so, make sure that you know some things about what that’s like.
You might be wondering what elements are included in a furnished apartment. Thankfully, we’re here to help. Here are some of the characteristics of a furnished unit.
In a standard rental, you will not find any pieces of living room furniture. If you’re looking to furnish your apartment, you might want to consider some of the following elements:
Similar to a living room, most bedrooms are pretty bare in unfurnished rentals. You can choose to add whichever pieces you like, but some bedroom furniture to include may be:
Major kitchen appliances are usually included in rentals, but it’s always nice to specify in your listing. In addition to the basics like a refrigerator, stove, and oven, other kitchen appliances to consider in a furnished unit are:
You can even go as far as to include other kitchen elements, such as dishes, flatware, cups, etc.
First, you’ll want to consider some of the reasons why you might want to offer a furnished rental. Here are some of the benefits of renting a furnished apartment.
There is a market of renters who are explicitly looking for move-in-ready options. These individuals are your target market and include students and professionals seeking out short-term stays.
Take, for example, corporate housing people. In these circumstances, they move into big corporate cities, like Birmingham, Nashville, Chattanooga, or Little Rock. What’s unique about these renters is that they are only staying for a certain amount of time.
These corporate housing people may live in another city, and they’re just commuting to the big city for work during the week. Or, maybe they’re just going to be here for two years. Their office may be paying for the rental, and they’re just staying in it. There are a few different situations that could apply in a corporate housing situation. Regardless, they are all potential opportunities to rent furnished houses.
The demand for short-term housing comes with a better ROI than long-term tenancies. People looking for short-term accommodation are looking for something quick and are usually ready to pay premium prices to get it. Long-term renters will not be as eager to pay premium rent prices over an extended lease duration.
Some landlords might be hesitant to furnish their apartments because it will cost them more money upfront. The truth is that this investment can pay off in the long run. Studies show that furnished apartments can earn up to 20% more rental income than similar options that are unfurnished.
The more money you put into your house, the more furniture you have, the more you can expect back in monthly rent payments.
In addition to earning more on rent, furnishing your rental apartment can also help you with taxes. Expensive furniture can be considered a depreciable asset, which you can claim on your taxes.
It’s essential to look at the other side of the argument behind renting a furnished apartment. Make sure you take the time to consider these thoughts as well.
First off, when you rent your house with furniture in it, there actually can be less of a demand for that. Most people already have their own furniture and are not looking for a house with furniture in it. So, what you do is you take this massive supply of potential tenants, and you kind of shorten it down to some minimal type of subset of tenants.
If you consider renting a furnished apartment, make sure you do your homework and find out what demographic is in the area. If it is not a big school or corporate area, you might want to reconsider.
The other thing that houses with furniture make is great short-term rentals. Now that’s not something that may be necessarily ideal, but short-term rentals typically have the furniture in it because you’re not going to move your house into a house you’re going to rent for a week. So, just think about that. Short-term rentals are kind of like Airbnb.
As expected, particular tenants will be attracted to furnished apartments, especially in comparison to those seeking out unfurnished units. Thankfully, houses furnished with high-quality goods will attract renters willing to pay for these luxuries.
Some of the tenants you can anticipate applying to rent your furnished apartment may be:
The final thought is yes. You can absolutely rent houses with furniture in it. It’s essential that you know what we are looking for and what tenants are looking for and that you have all the information before renting a furnished apartment.
Spencer is the VP of Marketing at Evernest. He wakes up with Google and Facebook on his mind. Having bought and sold over 150 homes in Birmingham, Spencer gets a kick out of helping new and seasoned investors navigate the mistakes he made as an investor. Spencer is also passionate about his love for Michael Jordan and does his best to explain to the Millennials (who never saw him play live) how much better he was than LeBron. He loves to hang out with his wife, kids, and the world’s best black lab, Jett.