Investing in rental properties can be a lucrative business. This is the reason why many real estate investors are now venturing into rentals. With the many rental properties available across the country, getting ahead of the competition can be challenging.
As a rental property owner, it’s crucial to know how to make your rental property appealing to attract renters.
Most rental property investors set aside a budget for home improvement so they can keep up with the demands of tenants. In most cases, modernizing a property is important if you want to attract a wide pool of young tenants.
Making the necessary improvements so your property will look enticing gives you a better chance of getting a high occupancy rate.
To get ahead of the game, several landlords go the extra mile to provide a variety of perks to renters. For instance, landlords offer a rental option that includes utilities, which gives them a competitive advantage. Property owners have also learned to adapt to what the renters need by offering new services specific to the tenants’ demands.
Another way to make your rental property more competitive is to provide a fully-furnished home. Furnished homes can attract renters who don’t want to buy or move furniture into a rental property.
Furnished rentals can also appeal to those who rent a place temporarily—like for work or school. However, with the cost to furnish a property, is it really worth renting a fully furnished home?
What Does a Furnished Rental Property Mean?
For rental property owners, to furnish a rental home means that you will provide most of the necessary furniture and appliances. However, there is no hard and fast rule on what furniture and appliances to include when you plan to furnish your rental property.
In most cases, landlords get to decide what to include, as long as the most important furniture and appliances needed to make the home habitable are there.
In general, furnished rental properties should include the following:
- Bed, dresser, and nightstand for bedrooms
- Shower curtain, vanity cabinet, and floor mats for the bathroom
- Appliances like an oven, stove, refrigerator, microwave, toaster, coffee maker, dishware, flatware, and cooking utensils for the kitchen
- Dining table and chairs for the dining room
- Sofa, television, coffee table, and an end table for the living room
Depending on your budget, you can also add more to the list, including napkins, placemats, and other place settings for the dining room or kitchen. You can also provide other small necessities like trash bins, lamps, stereo systems, alarm clocks, mirrors, and decors or artwork.
Who Rents a Furnished Property?
Furnished apartments appeal to a wide selection of tenants, such as:
- Temporary tenants: Furnished homes are appealing to temporary tenants like students and business people who are working away from home. They tend to stay in a location for just a few years, so buying furniture may not be practical for them.
- People new to an area: You can also attract migrants who will eventually buy a property of their own.
- Young professionals: Furnished apartments are also appealing to young professionals who are just starting out in their careers. These renters are usually single and don’t want to be bothered by having to decide which furniture to buy.
If you are investing in a location where most prospective tenants are students, business people, migrants, and young professionals, getting your rental home furnished may be a good idea. After all, these renters don’t think it makes sense to buy furniture to move into a place where they don’t plan to stay for long.
However, if your target market is young families and retirees, then maybe it’s best to leave your rental home unfurnished.
Although there are some families and retirees who also prefer to rent a furnished home to minimize the stress of having to move all the furniture and appliances in and out of an apartment. If you want to provide convenience to your tenants, providing them with the furniture that they need will make a huge difference.
What Are the Advantages of a Furnished Rental Home for Landlords?
As a rental property owner, getting your rental home furnished is an additional cost. However, you can also benefit from renting out a fully furnished home. Here are the most common advantages if you decide to furnish your rental property:
You Can Access a Wider Pool of Tenants
Because furnished homes are appealing to a wide range of renters, having your rental property furnished means you can attract more prospective tenants. This means that your market will not be limited and there’s a better chance of getting your property occupied.
You Can Charge a Higher Rent
Of course, a furnished rental home should be worth more than an unfurnished one. With the additional cost, time, and effort that you put into furnishing your property, you have the right to charge higher rent to your tenants.
After all, most tenants would be more than willing to pay a little extra for the added convenience.
You Can Minimize Damage to Your Property from Moving Furniture
If you provide furniture to your tenants, they won’t need to move in and out their own furniture. This can significantly reduce the possible damage that moving heavy furniture can cause to your property.
It’s Easy to Stage and Market Your Property
Furnished rentals are more attractive—you can easily highlight the best features of your rental home when they are fully furnished. Imagine having to show photos of a bare apartment compared to a fully furnished one. Getting your rental home furnished can help you market the property easily.
What to Consider Before Deciding to Furnish Your Rentals?
Before you decide to furnish your rental property, you have to first make sure that your location is right for furnished rentals. For example, properties that are located near a college or university are excellent candidates for furnished apartments.
Other good candidates for furnished rental homes are those that are located near business districts where most young professionals come to work.
If you are not sure whether or not it would make sense to furnish your rental property, it’s best to work with an experienced property management company. If you need a rental property management company in Texas, contact Limestone Country Properties at (830) 253-0018.