If you’re new to property management, there are dozens of choices you must make about how to run your business. One decision you’ll have to make is whether or not you want to furnish your rental. Each option has its pros and cons, so it’s important to have a firm choice made before you begin accepting rental applications. As you weigh both options, make sure to keep the following facts in mind about furnishing your rental.
Reasons you’d want to furnish your rental
Many times, if you choose to furnish your rental, you’ll be able to justify a higher price tag on the property when it comes to setting the unit’s rent. Especially if you already have furniture or can get a good deal on some nice pieces, this might be an excellent decision. This is particularly true for units in the city or near other metropolitan areas with many professionals who would be interested in your property.
Being able to appeal to someone who has just relocated for work and isn’t interested in having to buy a bunch of new furniture is a major selling point for some. At the same time, furnished properties also have major appeal to students who will only be living in the unit while they attend classes. If you’re willing to lease your property for two semesters and then use it as an Airbnb during the summer, it makes a lot of sense to furnish the apartment.
Reasons you’d want to avoid furnishing your rental
While there are certainly benefits to furnishing your apartment unit, there are obviously dangers that come with putting furniture in your rental. For starters, if a bad tenant breaks or damages your furniture, you’ll likely need to replace that furniture, which could become costly. Another reason you may want to consider not furnishing your rental is because it may make some tenants stay longer.
Of course, if you like your tenants, this isn’t an issue. However, irresponsible tenants may be more likely to continue causing problems when buying new furniture is another factor in determining whether or not they plan on moving out. When a tenant provides their own furniture, you also don’t need to worry about insuring the pieces in the home. This also cuts down on the energy and money you put into each unit, which can be especially beneficial if you own multiple units.
Have a strategy to get the best tenants
In both scenarios listed above, tenant preferences and behavior play a large role in whether or not it makes sense to furnish your apartment or not. One way to avoid these issues is to carefully run background checks to learn more about each applicant interested in your apartment. Using an online platform like Turbo Tenant makes the whole rental application process easy for both landlords and tenants. With tools that automatically weed out applicants who you’re likely to reject anyway (like a tenant who requires a rental that allows dogs), you can focus your time and energy on choosing from the best of the best. Having a solid system in place to help you find and keep great tenants can be a useful way to ensure that regardless of whether your property is furnished or not you’ll have a great experience as a landlord.
Ultimately, whether or not you decide to furnish your rental is a decision you must make yourself. If you have the ability to cheaply acquire some furniture pieces, and aren’t worried about insuring or replacing these items, it can be a great way to boost your income from rent. Conversely, more risk-averse property managers or those who have multiple properties may want to avoid the extra time and effort it takes to furnish their rentals.
No matter which option you decide on, make sure you use property management software like Turbo Tenant or a similar platform to attract the best tenants possible.