Landlords, like yourself, where once able to gain a competitive edge by offering to include utilities in the rent payment. But times have changed, and there are a variety of different markets are now responding to a tenant’s modern needs. So as a property owner, it’s a good idea to start thinking about what other services you can offer.

Some renters are not looking for long-term occupancies, such as tourists and students or employees staying for a certain time period to finish work training. Given the temporary need for housing, they won’t be looking to move their belongings or invest in appliances and furniture. In response to this demand many landlords are now offering furnished units.

If you’re one such landlord who is looking to provide a furnished unit, we at MTD property management have you covered. In this article we will take you through all the pros and cons of such a decision.

How Do Furnished Units Look to a Landlord?

The final decision on exactly what constitutes a furnished unit still depends on the individual landlord specification. But generally, furnished units, contain the following items:

●      Kitchen: stove, oven, refrigerator, toaster, dishware, cooking utensils, and coffee maker

●      Bedroom: bed, nightstand, dresser

●      Living room: sofa, coffee table, TV set

●      Bathroom: shower curtain and floor mat

●      Dining: tables and chairs

Who is the Target Market for Furnished Rentals?

Plenty of prospects are searching for furnished homes. As stated earlier, tourists, students, and professionals find it more appealing to move into furnished homes for the time being, due to the temporary nature of their stay.

For these short-term renters, purchasing furniture is an unnecessary expense and can be more stressful rather than moving into a furnished rental space. So, people who choose to rent furnished units prioritize convenience above all.

What Are the Advantages of Furnished Apartments for Landlords?

A Higher Rental Value

Tenants pay for the convenience of moving into furnished rentals. Consequently, you can set a higher rental rate.

When setting a rent price, you should consider the extra items in your unit, but the charge should still be reasonable. Otherwise, your prospects will look for other rental options. Keep in mind that shorter stays have higher price points than longer stays.

Little Damage During the Move-in Or Out

When your rental home is furnished, there’s little risk to face during the tenant’s transfer since no heavy furniture is moved to the unit. This means saving time and effort for the landlords since paint retouching won’t be required.

Bare in mind though, that with a fully furnished property, you can expect more wear and tear on fixtures fittings and appliances.

Focus on Your Market

Since you know the market that you’re catering to, you focus on their needs. There’s no confusion given that it’s easy to segregate these demographics into students, tourists, and business professionals. You can then come up with the right marketing plan to attract these renters and communicate with them on their terms.

A Higher Security Deposit

A furnished rental home needs more protection so landlords can ask the renters to pay a higher security deposit. This is a sensible practice considering if breaks down or any furniture gets damaged, you can have it repaired or replaced right away.

Attract More Prospects

Furnished rentals allow you to be more creative and provide an appealing aesthetic. Compared to unfurnished and empty rental homes, it’s easier to take beautiful photos of rentals with furnishings.

This creates much more interest and potential tenants can build an emotional connection easier when they see the great visuals of a staged rental property.

What Are the Disadvantages of Furnished Homes for Landlords?

Higher Risks

When you’ve invested in furnishings, the possibility of damage is high, especially if your tenant is neglectful in caring for your rental property. To prevent this from happening, you need to perform regular inspections and maintenance to keep the furniture looking good.

Temporary Occupants

Your target market prospects are temporary renters when you have a furnished unit. They stay under a year at most. As a landlord, this requires constant marketing of your property to ensure a consistent rent income.

Varying Tenant Tastes

Some tenants may not want other furnishings you’ve provided. So, you may need to rent a storage room to keep the removed items. It entails additional effort on your part and extra storage costs.

Bottom Line

Study your neighborhood location and assess if you’re close to a school, local attractions, or business districts. It’s best to serve a ready market, so little marketing is needed. Just make sure that the market you’re focusing on can afford the rental fee you’ll set before deciding to furnish your unit.

If you have any questions regarding how to furnish your unit or anything else with respect to property management, its best to contact a professional like us at MTD Property Management. We are a full service property management company able to provide you with a variety of services to turn your rental unit into a lucrative investment.

Contact us today for more information!