There are a lot of valid reasons why you might consider furnishing your Little Elm rental house. Not only can you charge a higher rent for a furnished property, but in fact, you may be able to have your rental leased to a really wide variety of tenants. But in reality, owning a furnished rental isn’t favorable for every location or property investor, so it’s critical to take into consideration the pros and cons before you start shopping for furniture and décor.
The very first thing you should be thinking about is what type of tenants you will attract to your Little Elm rental property largely based on 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. In that event, you may determine that offering furnished rentals are one very 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 various business professionals needing to be near job sites for months at a time. Other demographics are going after furnished rentals, likewise, so it’s vital to really understand your location and market well before deciding who your rental property is best suited for.
Other than attracting a new group of potential tenants, there are several advantages to furnishing a rental house. In financial terms, furnished rentals generally rent between 15% and 30% more than unfurnished ones. If you’ve done excellent work with your furnishings, it can even really help you rent the property more easily given that an attractively furnished space will quite possibly hold more appeal for renters than an empty one.
But be aware though, with all of the apparent benefits, there are various drawbacks as well to furnishing a rental house. Maybe the biggest issue 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 need to be refurbished as they begin to show signs of age and wear. Although it’s true that tenants may not be as careful with a rental’s furnishings as they would be with their own. Choosing good quality, durable items can definitely guarantee they last longer, but on the other hand, the cost of replacement is one matter that you’ll actually have to plan for in your budget.
One other usual 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 tricky to trace every single item in a rental house, which will make more work for you as you try to do so. This is especially true if you are looking to get compensation for missing or broken items. You will have to make clear documentation of every item in your rental property previous to your tenant moving in and then it’s really necessary to complete an inventory again when they move out.
It’s additionally necessary 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 going in search of a furnished rental will assume every item in the house to be spotless and in good condition. Anything less, and you may see yourself start losing tenants. If prospective tenants don’t love how you’ve furnished the place or find the furnishings in less-than-ideal conditions, they may choose not to rent your property on that fact alone. They may, on the other hand, just ask you to remove some of the furnishings, requesting you to find someplace else to store the unwanted items. Any of these situations could result in additional costs that will surely hurt your monthly cash flows.
In the long run, the question of whether you should furnish your Little Elm rental is one only you can resolve. Although be assured that 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 Little Elm area to weigh in on the question of furnishing your rental property, contact the team at Real Property Management Focus 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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