If you are a first-time rental property owner, you may be wondering if offering furnishings will help you to get a higher price point for rent or if it will make the property more enticing for tenants. While furnishing your property has its positive points, it also has its negatives. Learning more about the pros and cons of furnishing a rental can help you to make the decision as to whether or not you will be adding furniture in your investments.
Increase in Rent
With the addition of furnishings, you will have the ability to increase the rent, but only a small percentage. Most renters have their own furniture, so you will only be catering to a small group of tenants that will need a furnished apartment or home. However, when purchasing property, considering the location is key to determining if furnishing is the way to go. Take for example a busy business district. If you have an apartment property in a business section of town, you could cater the rental towards business individuals. Many people travel for work and end up living in a city for six months and then moving on. Having a furnished apartment would be a bonus for such employees. Catering to this group would allow you to have a rotating group of renters at your disposal, especially if you partner with a company that continually brings in new employees on a regular basis.
Type of Renters
It is also important to consider the type of renters you will be working with. The area in which your rental is located will dictate the type of renter that will be seeking to rent your dwelling as well as the amount of rent you can charge. Each factor needs to be considered before you furnish the space. If you can upcharge the rent, then you have a little wiggle room to offer furnishings. You want to have a cushion in case furniture needs to be replaced due to wear and tear or other issues.
Always remember to use tenant screening when considering any tenant for your rental property. With proper tenant screening, you can weed out any individuals who might not be reliable, be it with paying rent on time or taking care of your property and any furnishings provided. With the proper screening techniques and consideration when purchasing a rental property, you can make a profit and possibly furnish the space for even more earnings.
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