As a landlord, you may be asking yourself – Would I most benefit from renting my property furnished or unfurnished?
Although there are expenses associated with renting out a furnished property, there are also benefits.
We’ve gathered a list of tips to consider when deciding whether you should lease your unit furnished or unfurnished. By the end of this post, you’ll know exactly how to weigh your options to determine what best fits your Tampa rental property.
What Is a Furnished Unit?
A furnished unit is a property that comes with all the fittings that make for comfortable living. Semi-furnished properties are those that have only the basics like a sofa, a bed, a table, and some chairs, with fewer appliances or smaller pieces of furniture.
To paint a clearer picture, a furnished rental should have all the essentials. The bedroom should have a bed, dresser, and nightstand or additional storage space. The kitchen should contain the usual appliances and utensils needed for cooking and eating such as pots, pans, dishes, utensils, and glasses. It should have a functional dining and living room that includes tables and seating.
Who Usually Chooses a Furnished Unit?
Renters who often are looking for a furnished property are students and young folks. They usually don’t stay for the long-term, so this set-up is great if you prefer short-term rentals.
These types of properties are more likely to attract first-time renters; those who have just left home, as well as young professionals who are looking for a place for a short period of time. Moving into a furnished unit is more appealing to these tenants since they can move in immediately with minimal fuss.
Mature tenants and those with families usually have most of the main furniture and appliances already.
Benefits of Renting Out a Furnished Unit
- Higher rent – A well-furnished unit can rent for up to 75% more than a dwelling that is unfinished. This is great for your revenue and provides a sense of security for your tenants since they don’t need to buy furniture, transport it, or pay for storage.
- Faster turnaround times – You can rent the property quicker because most tenants will be looking for furnished units especially if they are short term renters.
- Greater security deposits – As a landlord, when it comes to leasing out a furnished rental apartment, another advantage is that you can ask for higher deposits. This is a general practice that comes as insurance for if the furniture and/or appliances get damaged.
- Better quality tenants – If your tenant realizes you put thought into furnishing your property, this will lead them to better care for the possessions and your rental.
- Large inventory – You have a variety of furniture and appliances to use the furnishings in your other properties.
Benefits of Renting Out an Unfurnished Unit
- Extended occupancy and longer leases – Your tenants may choose to rent longer if they’ve personalized the property to suit their likings.
- No additional insurance – As a landlord, you are not responsible for the resident’s belongings. You also don’t worry about the wear and tear, upgrading or replacing appliances and furniture.
- Increased tenant satisfaction – Your tenants will be more content if they can customize their surroundings.
The Bottom Line
The upside to renting long-term is that you don’t need to look for another tenant every few months, but these types also involve lower rental fees. You can be safeguarded knowing there is stability as tenants will stay in your property for a long period of time.
The most time-intensive and often costly part of being a landlord is screening applicants. You may be doing this multiple times a year. It can be tempting for a landlord in such circumstances to lower the selection standards, creating the risk of leasing to a problematic tenant.
There are various pros and cons of renting a furnished apartment and it is all dependent on the needs of the area. The taller cost of furnishing a property and more time spent caring for it may pay off in the long run with higher rentals and deposits. Depending on the location, unfurnished properties can take longer to occupy.
Choosing whether to lease your property furnished or unfurnished will depend on your preference – if you can absorb the costs of furnishing the apartment. A furnished rental may be attractive to some, yet conversely, it may not be the best set-up for others. In addition to these considerations, it is worth exploring the demand for furnished and unfurnished properties in your area. Do your research and learn the target market to help you decide.
There are no hard and fast rules about whether you should furnish your property. There are benefits and drawbacks associated with both options. The circumstances of your tenants will differ. This means what works for one might not work for another. As a landlord in Tampa, there is a wide range of factors to deliberate when deciding which option is suitable. Hopefully, this post has helped you in this regard.
If you have any further questions, don’t hesitate to contact us at (813) 908 – 8300.