There are a lot of good reasons for furnishing your Richmond rental house. In addition to charging a higher rent for your furnished property, you can also open your rental to a wider tenant base. Still. owning a furnished rental isn’t the right option for every location or property investor. It is still best to weigh the pros and cons before you start furniture & décor shopping.
First of all, you have to consider what kind of tenants you would like to attract to your Richmond rental property based on its location and proximity to amenities. Let us say your property is near a popular vacation spot or a bustling city center that brings in new business professionals. You will realize that offering furnished rentals is a good way to serve this rental base.
Furnished rentals are suitable for tenants like executives, investors, project managers, or other business professionals who need to be near job sites for months at a time. There are also other demographics who look for furnished rentals, so it is important to study your location and market well to find out who your rental property is suited for.
Aside from attracting new potential tenants, there are other advantages to furnishing a rental house. In financial terms, furnished rentals often rent between 15% and 30% more than unfurnished ones. If you have good furnishings, you can rent the property easily since renters usually find an attractive furnished space more appealing than an empty one.
With all these benefits, there are also some challenges to furnishing a rental house. One of the biggest issues for property owners is the potential damage and wear and tear on furniture and other items in the rental house. It is not a question of replacing worn-out furnishings. But some tenants may not be as careful with your rental’s furnishings. Choosing durable items will help them last longer but you should still plan and budget for the cost of replacement.
Another common 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. Keeping track of every item in a rental house is very hard. This is especially important if you are trying to get compensation for missing or broken items. Clear documentation of all the items in your rental property before your tenant moves in is important, as well as a complete inventory once they move out.
You also have to remember that the more things you have in your rental house, the more time it will require for maintenance, cleaning, and general upkeep. Tenants who are looking for a furnished rental will want the items in the house to be in good condition. Anything less, and you may start losing tenants. Prospective tenants can decide not to rent your property based only on how you have furnished the place or if they find the furnishings less than ideal. Some may also want you to remove some of the furnishings, meaning you will have to find storage space for these. These can all result in additional costs that will affect your cash flows.
In the end, you will still be the one to decide whether or not to furnish your Richmond rental. So you have to understand your ideal tenant and local rental market so you can make sound decisions for your properties.
If you would like an expert in both property management and the Richmond area to weigh in on the question of furnishing your rental property, contact the team at Real Property Management Sterling today. Our property management experts can help you determine whether furnishing your rental house is the right move for your situation and goals.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
