One of the most important decisions you’ll have to make when renting out your home is whether to rent it furnished or unfurnished. While the decision is ultimately yours, we’ll outline some of the advantages of furnishing your rental home.
- You’ll draw more tenants by making their transition smoother.
For many tenants, the prospect of having to relocate is terrifying. They’re leaving the people and towns they know behind and embarking on an adventure into unknown land. When you factor up the logistics of relocating the contents of a two-bedroom apartment, it’s a no-brainer. They’re done when you stick a fork in them.
You’re alleviating some of the stress of moving by offering a furnished flat. There’s no need to rent a large moving truck or spend hundreds of dollars on furnishings when you rent a furnished flat. Instead, residents may move into their new house right away.
- You cater to a rapidly expanding market of short- and mid-term renters.
Renters searching for long-term leases may choose unfurnished flats so that they may choose their own furnishings. In today’s rental market, however, many people are searching for accommodation with a shorter lease period. Students finishing an internship, for example, may only require a place to stay for three months, while young professionals may prefer to sign a two-month lease while exploring a new city.
Whatever these folks are, one thing is certain: they do not want to relocate all of their belongings into an unfurnished space for a brief visit. When you equip your home, you make it more appealing to potential buyers that are looking for mid-term and short-term leases.
- You’ll have a faster turn-around time and be able to fill openings more quickly.
Because your renters will be staying for shorter periods of time if you rent your home as a mid-term or short-term rental, you’ll have a larger turnover than if you offer it as a long-term rental. You may fill unoccupied spots faster by furnishing your houses than if they were unfurnished. As previously said, tenants seeking shorter leases are frequently opting for completely furnished rooms.
Also, because they won’t have to relocate a lot of stuff, existing renters will be able to go sooner. So, by furnishing your rental, you’ll boost the chances of finding a new tenant soon. And we’re all aware of the situation, the faster you fill a unit, the more rental income you receive.
- You have the option of charging a greater fee.
It’s a good idea to consider the expense of replacing furnishings when determining how much more you charge for a furnished property. Even if you have the nicest renters in the world, they’ll wear out everything from your couches to your pots and pans. Determine how long an item will last and how much it costs is a smart method to think about this. In an ideal world, you would calculate the cost of furnishing your entire apartment for a year. It is, nonetheless, acceptable to make educated guesses.
Don’t be shy about charging higher rent for a furnished home; renters expect this! Depending on the location and size of your unit, furnished rentals cost 5% to upwards of 50% more than comparable unfurnished rentals. It’s a good idea to look at comparable furnished real estate in your area to get an idea of the average listing price. And remember, you should charge more than the price for similar unfurnished apartments.
- Taxes can be reduced.
You might be able to classify the furnishings you buy for your rental units as a company asset or expense because they are an inevitable component of running a business. You can claim tax deductions in this manner. Just make sure you keep your receipts, and get tax advice.