When you buy an investment property with the intention to rent it out, it is common to have questions about what you should include to be able to get a higher rent.
Many landlords opt to include furniture that a tenant will need to live normally like beds, sofas, tables, and dressers.
There are pros and cons for tenants and landlords to including furniture in a rental property. Here we share some reasons why you should -or shouldn’t- rent your property furnished.
IS UNFURNISHED BETTER?
It is not necessarily better. It depends on what you, as a landlord, are looking for and the type of tenants you want to attract.
You should know the term “unfurnished” does not necessarily mean the property will be completely bare. While landlords are not legally required to do it, unfurnished rentals usually come with appliances such as washing machines, refrigerators, stoves, and dishwashers. And will usually include kitchen cabinets, toilets, curtains, or blinds, etc.
LONG-TERM VS SHORT-TERM RENTALS
It is important that you know that tenants tend to move out more often when the unit is furnished.
Furnished properties are more common in short-term rentals, where tenants are not thinking about staying for an extended period. If your intention is to attract long-term tenants, renting your property furnished might not be the best option for you.
Furnished units are great for newlyweds, students, young people renting for the first time and people who would otherwise have to purchase all brand-new furniture to move-in. It is also the way to go when it comes to vacation rentals.
THE GOOD, THE BAD AND THE UGLY FOR LANDLORDS
The good thing about renting your property furnished is that you will be able to charge higher rental rates. While it is true that losing tenants often costs you money, furnished units typically command a higher monthly rent, so you will be able to cover the extra marketing costs, maintenance, and any necessary repairs.
Keep in mind that if you decide to include furniture in your rental property, they will belong to you and, just as any other part of the property, they should be properly maintained and/or repaired by you unless the tenants are responsible for any damage.
When it comes to unfurnished units, damages to the property in the move-in and move-out process is also a common issue.
It is important that clauses about who is responsible for repairs are included in the lease agreement before tenants sign it, so they know what to expect before moving in.
BENEFITS FOR TENANTS
Furnished units have many benefits for tenants. It makes the moving process easier and cheaper for them.
With furnished units, tenants will have hassle-free move-ins without the necessity to buy or struggle with big furniture, and they won’t have to hire a moving company to transport their furniture from their former home either.
Consider the rental market in the area and the type of tenants that you hope to attract to make your decision of whether or not to include furniture in your rental property.
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