As a rental property owner, you want to ensure that you are attracting the best tenants who are both willing and able to pay a fair rent, and ideally who will also keep your investment in good shape while residing there. In attracting tenants, you may have considered furnishing the property as a convenience, and in turn, a way to fill empty units faster. But even though a furnished unit may be more appealing to a possible renter, don’t go furniture shopping until you know both the advantages and the drawbacks.
On the positive side, a furnished rental can end up saving the tenant money, as they will not need to purchase their own items. Oftentimes, you may also be able to get the unit rented faster than an unfurnished property, as the tenant will usually be able to move right in, without the need to haul their own pieces from their former residence.
In addition, the furniture can also be considered another asset – and, when the tenant moves out and / or you decide to sell the property, you could also get back at least some of what you initially paid for the furniture. As an added bonus, you may be able to deduct a percentage of the furniture’s cost on your tax return.
That being said, though, there are some things to be mindful of, too. For instance, if the tenant doesn’t own the furniture, then it’s possible that they will be a lot less concerned about wear and tear to it, such as spills, scratches, and other types of damage. And, if the furniture is in really rough shape, you could find yourself having to get rid of it when the tenant moves out.
In addition, if a tenant has furnished the unit with his or her own items, they are oftentimes more likely to remain in the residence longer, as moving can be both time-consuming and expensive.
Many of the aspects of being a landlord can also take up a lot of your time. If that is something that you would rather delegate to someone else, then it could be time to hire a professional property manager.
For more details on how you could benefit from handing over the day-to-day landlord duties to a property management team, then give us a call today.