Each property owner has the decision to rent out their units furnished or unfurnished. Renting it unfurnished is often more convenient and less expensive for the property owner. However, there are some valid reasons why it might be a good idea to furnish a unit before renting it, which we’ll explore in more detail below.
Reasons You Should Furnish Your Investment Property
Deciding to furnish your investment property can be a worthwhile choice. Here are some scenarios where this might be a good idea:
More convenient for short-term rentals or corporate stays where tenants can’t or don’t want to temporarily move all of their belongings
You can enhance the appeal and value of your property by furnishing it with quality pieces and appliances
You can charge higher rent prices for furnished units
Reasons Against Furnishing Your Investment Property
On the other hand, there are some common reasons why property owners decide not to furnish their rentals, such as:
Prospective long-term tenants already own furniture, art, or appliances that they’d like to move with them
You may exclude certain tenants based on your choice of furniture and decor if it doesn’t fit their aesthetic preferences
It can be expensive to furnish an entire unit, especially if you own multiple investment properties
Finding the Balance
The decision to rent a property furnished or unfurnished should be based around what will make your property most appealing to prospective tenants. If you want to reduce vacancy rates and have your property spend less time on the market, consider what your prospects expect in a rental property, and go from there.
For example, if you are in the business of short-term rentals, it’s more likely that you’ll want to furnish your investment property to appeal to those who are only looking for a temporary stay. But if you’re renting out your property to long-term tenants, you’ll probably want to go unfurnished.
You don’t have to take an all-or-nothing approach, though. Furnishing the unit with essential appliances like a fridge, washer, and dryer typically makes a rental more attractive, no matter how long the lease agreement is.
There’s also the option to offer a semi-furnished property. In this case, you may rent out your property with a bed frame in all bedrooms, a TV installed in the living room, and utensils and small appliances like a toaster or coffee maker in the kitchen.
Thus, there are some important considerations when deciding whether to furnish your investment property. The good news is that investment property owners can furnish their rentals as much or as little as they wish, allowing them to make the decision that makes the most financial and practical sense.
–
Written by Bailey Schramm