Furnished rentals may be more costly, but there are a few pros to them. The idea of “furnished’ can be completely up to you as Landlord/Property Manager. Some rentals will only have kitchen appliances or living room furniture,while others will have additional decor. Either way, when setting up your property, here are a few things to consider.
Pros
- Money saver
- With a furnished property, you’ll attract a niche market of tenants on a budget.
- When a tenancy ends, you can keep the furniture for the next tenant or for yourself.
- Attract more transient tenants
- More mobile tenants will often have less furniture. If you’re aiming for tenants like students, young professionals or people only looking to stay for a shorter period of time then a furnished rental may be to your advantage.
- Higher price bracket
- Tenants are ready and willing to pay more for the convenience of moving into a fully furnished home.
- Tax benefits
- Depending on the type of property you have, you may be able to deduct a percentage of the cost of goods from your tax liability.
Cons
- Location
- You’ll want your furnished property to be in the right location to attract the right tenants. University campuses and business districts are premiere locations.
- Regular update of furnishings
- If you’ve decided to let a furnished property, it’s best to invest in quality furniture or the type that won’t have obvious signs of wear and tear over time.
- Insurance issues
- While it may not be an obligation, it’s still wise to take out insurance on items on your property.
- Safety standards
- There may be certain codes you’ll need to follow when installing items like electrical appliances.
