There are a lot of reasons for you to furnish your Homestead rental house. Aside from the opportunity to charge higher rent for a furnished property, you will also be able to widen your tenant base. However, this does not mean that owning a furnished rental is the best option for every location or property investor. It is important to evaluate the pros and cons first before you shop for furniture and décor.
Think about what type of tenants you wish to attract to your Homestead rental property based on location and proximity to amenities. For example, your rental is near a popular vacation spot or a city center that has many business professionals. You will see that offering furnished rentals is a good way to cater to this rental base.
Your furnished rental can be leased by tenants ranging from executives to investors, project managers, or other business professionals who need to be near their job site for months at a time. Other demographics are also beginning to consider furnished rentals so it is important to establish your market and location so you can market your rental property the best way.
There are other advantages to furnishing a rental house. In financial terms, furnished rentals often rent between 15% and 30% more than unfurnished ones. Great furnishings help you rent the property more easily. Renters find attractively furnished spaces to have more appeal versus empty ones.
Along with these benefits, there are also some downsides to furnishing a rental house. Potential damage to furniture is probably the biggest issue property owners face. Of course, furnishings will have to be replaced as they show signs of age. But tenants can be less careful with a rental’s furnishings than their own. Choosing sturdy items will help them last longer but you still need to plan for the cost of replacement in your budget.
Another common problem with furnishings is that small items are easily broken, lost, or stolen. Remote controls, bed linens, lamps, and small appliances may quickly break down or disappear. Tracking every single item in a rental house takes so much work. This is especially important if you are trying to get compensation for missing or broken items. It helps to have clear documentation of every item in your property before your tenant moves in and to do a complete inventory once they move out.
You also have to bear in mind that more things in your rental house will mean more time for maintenance, cleaning, and general upkeep. Tenants of furnished rentals usually expect items in the house to be in good condition. Anything less, and you may start losing tenants. Tenants may decide against renting your property simply because the furnishings were not what they expected or they just didn’t like how you furnished the property. If they ask you to remove some of the furnishings, you will also have to find a place to store these Situations such as these will entail additional costs that could hurt your cash flows.
You still have the final say as to whether you will furnish your Homestead rental or not. Just make sure you have a very good understanding of your ideal tenant and local rental market so you can make confident choices for your properties.
If you would like an expert in both property management and the Homestead area to weigh in on the question of furnishing your rental property, contact the team at Real Property Management Dade today. Our property management experts can help you determine whether furnishing your rental house is the right move for your situation and goals.
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