There are countless perfect reasons why you might consider furnishing your Greenwood rental house. Not only can you charge a higher rent for a furnished property, but on top of that, you may be able to easily keep your rental leased to a broader variety of tenants. But on the other hand, owning a furnished rental isn’t suitable for every location or property investor, so it’s significant to think of the pros and cons before you start shopping for furniture and décor.
First, you should think hard about is what type of tenants you will attract to your Greenwood rental property on the basis of its location and proximity to amenities. Suppose your rental is near a popular vacation spot or a growing city center bringing in new business professionals. If so, you may see that offering furnished rentals is one effective way 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 some business professionals needing to be near job sites for months at a time. Other demographics are searching for furnished rentals, too, so it’s imperative to really know and understand 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 quite a few advantages to furnishing a rental house. In financial terms, furnished rentals usually rent between 15% and 30% more than unfurnished ones. If you’ve accomplished a great job with your furnishings, it can even aid you in renting the property more easily because an attractively furnished space will perhaps hold more appeal for renters than an empty one.
But keep in mind, besides the obvious benefits, there are some drawbacks to furnishing a rental house. Possibly the greatest concern 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 have to be changed as they begin to show signs of age and wear. But really, tenants may not be as careful with a rental’s furnishings as they would with their own. Choosing good quality, durable items can necessarily make them last longer but bear in mind, the cost of replacement is one thing you’ll, however, want to plan for in your budget.
One well-known problem with furnishings is 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 difficult to check for every single item in a rental house, which will produce more unnecessary work for you as you make an effort to do it. This is particularly accurate if you will attempt to get compensation for missing or broken items. You will need clear documentation of every item in your rental property prior to your tenant moving in and then you have to complete inventory again when they move out.
It’s moreover relevant 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 in search of a furnished rental will anticipate every item in the house to 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 a decision not to rent your property on that fact alone. They may likewise urge 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 event, the question of whether you should furnish your Greenwood rental is one only you can determine. But 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 Greenwood area to weigh in on the question of furnishing your rental property, contact the team at Real Property Management Indianapolis Edge 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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