More than 100 million Americans rent their homes. With so many Americans looking for rental properties, people have seen the opportunity and bought homes to rent.
Now that you have a home to rent, you may be working with a leasing agent to occupy the property. The longer your property is vacant, the more money you lose.
There are many decisions to make as you prepare your home for rent. From wall paint color to whether to offer furnished rentals or unfurnished rentals and more.
Continue reading this article to learn everything you need to know about leasing a furnished rental. Is it a good idea or should you steer clear?
Furnished Rentals Pros & Cons
When you want to find good tenants, you need to remember to be a good landlord. If you are cutting corners and not offering what the market demands, you aren’t likely to attract the best tenants.
1. Makes It Easier for Your Clients to Raise Move-In Money
When you are trying to get clients to move into your property, they may have challenges coming up with the initial money they need. When they don’t have to buy furniture, it’s one less expense.
When you are screening tenants, you need to make sure they have the money to move in and aren’t wasting your time. Decreasing their costs may help you find people who qualify to move into your property.
2. Deduct a Percentage of Cost of Goods
You can deduct a percentage of the money you spend on furniture. You can deduct the cost of a replacement item and the cost of old item disposal.
1. Renters Could Damage Your Furniture
When you rent your property furnished, there is a possibility the furniture will get damaged. Not only will this cost you money, but it is an annoyance.
2. Paying for Insurance
While you aren’t required by law to have contents insurance on the belongings inside your property, you should look into it, so you don’t have to put out a lot of unexpected money all at once.
Paying contents insurance is a con because you have to spend extra money each month. The extra money you spend decreases your net rental income.
It’s All About Preference
There is no perfect answer for whether you should furnish your rental properties. You have to decide which option gives you the best results for what you are trying to achieve.
If you have a small property, having it furnished when you rent it can be helpful because these properties are often rented by younger people who don’t have a lot of furniture.
If your property is large, it’s likely to attract older families who may already have furniture and other belongings. Know who you plan on renting to, and it will make it easier for you to make your decision to furnish or not to furnish easier.