Tips for Leasing Furnished Rentals
As a landlord, offering a furnished house or apartment for lease can be a lucrative opportunity in the rental market. Providing a ready-to-move-in space appeals to tenants seeking convenience and comfort without the hassle of purchasing and moving furniture. This model works particularly well with student housing or single family residences.
However, leasing a furnished property comes with its unique challenges and considerations. In this article, I will discuss essential tips for landlords leasing a furnished house or apartment to ensure a successful and satisfying rental experience for both parties involved.
1. Quality Furnishings Matter: Invest in good quality furniture and appliances that can withstand regular use. It is worth while to read reviews on furniture and appliances. A rule of thumb- if a reviewer has kids and still recommends the product it was probably made well.
2. Inventory and Documentation: Maintain a comprehensive inventory of all the furnished items provided in the rental. Document the condition of each item with photographs before a new tenant moves in. Further, keep receipts for as much of the furnishings and appliances as possible. This documentation will serve as evidence in case of disputes or claims for damages at the end of the lease. Having receipts provides for a base line for replacement cost rather than just guessing on a "similar" item from a different company.
3. Set Clear Expectations: Clearly outline tenant responsibilities regarding the care and maintenance of the furnished items. Provide instructions on how to report damages or issues promptly to avoid unnecessary complications. Download the manuals for all appliances and provide them to tenants. Most manuals have suggested maintenance requirements to keep appliances in working order longer.
4. Understand Your Target Market: Understand the preferences and needs of your target market. Look at other furnished listings in the area. If your house has a very specific aesthetic, ie. modern farmhouse, furnishing the home to match will attract more tenants because the home will feel more cohesive.
5. Factor in Wear and Tear: Recognize that furnished items will experience more wear and tear than unfurnished properties. Budget for regular maintenance such as appliance repairs or professional rug/upholstery cleaning. Also keep a budget for replacement of furniture and appliances. Sign up warranties for all appliances in the event they malfunction you may have a chance to get them fixed or replaced at no cost to you.
6. Incorporate Modern Amenities: Consider providing modern amenities such as a high-speed internet connection, smart home devices, and cable TV. These features attract tech-savvy tenants. While the service may be paid by the tenant, having the house pre-equipped is appealing. Further, it allows you to determine where and how lines are run.
7. Set an Appropriate Rental Price: Take into account the value of the furnished items when determining the rental price. Furnished properties typically command a higher rent, but it should be competitive and reasonable for the market. Buying the most expensive items may not add any additional base rent value, so shop accordingly.
8. Screen Tenants Carefully: Thoroughly screen potential tenants to ensure they are responsible individuals who will treat your furnished property with respect. Verify their rental history, employment status, and references before finalizing the lease agreement.
Taking the above into consideration will drastically improve your experience leasing a furnished rental.
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The information in this post is for general information purposes only. Nothing on this post should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.