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The Pros and Cons of Owning A Furnished Rental

Furnished Living Room in Nelson County ApartmentThere are some excellent reasons why you might consider furnishing your Nelson County rental house. Not only can you charge a higher rent for a furnished property, but definitely, you may be able to keep your rental leased to a large variety of tenants. But keep in mind, owning a furnished rental isn’t appropriate for every location or property investor, so it’s relevant to take into serious consideration the pros and cons before you start shopping for furniture and décor.

Definitely, the very first thing you should think of is what type of tenants you will attract to your Nelson County rental property based on its location and proximity to amenities. Suppose your rental is near a popular vacation spot or a flourishing city center bringing in new business professionals. In such a case, you may realize that offering furnished rentals are one effective approach to tap into this renter base.

Furnished rentals can be both short- and long-term, whether your tenant is an executive moving across the country or an investor, project manager, or different business professionals needing to be near job sites for months at a time. Other demographics are on the lookout for furnished rentals, equally, so it’s essential to have a clear understanding of your location and market well before deciding who your rental property is best suited for.

Besides attracting a new group of potential tenants, there are certain advantages to furnishing a rental house. In financial terms, furnished rentals, in most cases, rent between 15% and 30% more than unfurnished ones. If you’ve completed an amazing job with your furnishings, it can even help you to rent the property more easily considering that an attractively furnished space will most likely hold more appeal for renters than an empty one.

Obviously, along with the clear benefits, there are also several impediments to furnishing a rental house. Seemingly, the dominating difficulty that owners of provided properties face is potential damage and wear and tear on furniture and other items. There is no question that furnishings will necessarily need to be changed as they begin to show signs of age and wear. But it is a real fact that tenants may not be as careful with a rental’s furnishings as they would with their own. Choosing good quality, durable items can help see to it that they last longer, but remember, the cost of replacement is another thing you’ll additionally have to plan for in your budget.

Another widely known problem with furnishings is that those small items are easily broken, lost, or even stolen. Remote controls, bed linens, lamps, and small appliances may quickly break down or disappear. It is tough to track down every single item in a rental house, which will cause more work for you as you aim to do such. This is definitely needed if you ever desire to get compensation for missing or broken items. You will have to make clear documentation of every item in your rental property in preparation for your tenant moving in and then definitely do a complete inventory again when they move out.

It’s as well imperative to keep in mind that the more things there are in your rental house, the more time and effort you’ll spend on maintenance, cleaning, and general upkeep. Tenants seeking a furnished rental will want every item in the house to be spotless and in good condition. Anything less than their expectations, and you may indeed start losing tenants. If prospective tenants don’t admire how you’ve furnished the place or find the furnishings in less-than-ideal conditions, they may opt not to rent your property on that fact alone. They may even request you to remove some of the furnishings, insisting you to find someplace else to store the unwanted items. Any of these situations could result in additional costs that will, without a doubt, hurt your monthly cash flows.

After all, is said and done, the question of whether you should furnish your Nelson County rental is one only you can think of answers to. But rest assured, as long as your decision is based on an in-depth understanding of your ideal tenant and local rental market, you can feel confident that the choice you make is the best one for you and your properties.

If you would like an expert in both property management and the Nelson County area to weigh in on the question of furnishing your rental property, contact the team at Real Property Management Cairn 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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