There are numerous valid reasons why you might consider furnishing your Searcy rental house. Not only can you charge a higher rent for a furnished property, but on the flip side, you may also be able to actually keep your rental leased to a broad variety of tenants. But still, owning a furnished rental isn’t suitable for every location or property investor, so it’s necessary to go into the pros and cons before you start shopping for furniture and décor.
The very first thing you should consider seriously is what type of tenants you can attract to your Searcy rental property about its location and proximity to amenities. Suppose your rental is near a popular vacation spot or a booming city center bringing in new business professionals. If that is the case, you may discover that offering furnished rentals are effectively one measure 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 particular business professionals needing to be near job sites for months at a time. Other demographics may be inquiring for furnished rentals also, so it’s crucial to be aware of your location and market well before deciding who your rental property is best suited for.
Aside from attracting a new group of potential tenants, there are few advantages to furnishing a rental house. In financial terms, furnished rentals oftentimes rent between 15% and 30% more than unfurnished ones. If you’ve done a nice job with your furnishings, it can even help you to rent the property more easily on account that an attractively furnished space will really hold more appeal for renters than an empty one.
Needless to say, as there are gains and benefits, there are also disadvantages to furnishing a rental house. Most likely the major issue that owners of furnished properties face is potential damage and wear and tear on furniture and other items. There is no question that furnishings will need to be replaced with new ones as they begin to show signs of age and wear. However, tenants may not be as careful with a rental’s furnishings as they would with their own. Choosing good quality, durable items can always ensure they last longer, but on the flip side, the cost of replacement is another thing you’ll also have to plan for in your budget.
A particular 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 toilsome to monitor every single item in a rental house, which will bring about more unintended work for you as you attempt to do this. This is mainly correct if you aim to get compensation for missing or broken items. You must make clear documentation of every item in your rental property ready before your tenant moves in and then do a complete inventory again when they move out.
It’s similarly vital 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 looking for a furnished rental will think every item in the house should be spotless and in good condition. Anything less than their expectations, and you may start losing tenants. If prospective tenants don’t like how you’ve furnished the place or find the furnishings in less-than-ideal conditions, they may make up their mind not to rent your property on that fact alone. They may further request you to remove some of the furnishings, asking you to find someplace else to store the unwanted items. Any of these situations could result in additional costs that will hurt your monthly cash flows.
In any case, the question of whether you should furnish your Searcy rental is one only you can respond to and do something with. But always remember, 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 Searcy area to weigh in on the question of furnishing your rental property, contact the team at Real Property Management Delta 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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