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To Furnish or Not to Furnish?
. . . that is the question
ADVANTAGES
Renting a property often comes with the choice between furnished and unfurnished options. Here’s why furnished rentals are generally more advantageous.
- First, the convenience of a furnished rental is unparalleled. Tenants can move in and start living immediately and are willing to pay a premium for this amenity.
- Additionally, furnished rentals are desired by those needing temporary housing. Stays from 90 days to several months allow owners to take advantage of seasonal rates in between turnovers.
- Financially, furnished rentals attract a certain clientele. Often tenants are high value homeowners elsewhere and may have a higher appreciation and knowledge of home care & maintenance,
Moreover, furnished rentals provide a ready-made sense of home, which is particularly comforting if you’re new to an area. Walking into a fully equipped, welcoming space can make your tenants’ transition smoother and more enjoyable.
Key Factors
Renting a property often comes with the choice between furnished and unfurnished options. Here’s why furnished rentals are generally more advantageous.
- Cost: Furnished rentals usually have a higher monthly rent but also have furniture & utility costs associated with it.
- Move-In Once: Your unit will experience reduced wear & tear as furniture is moved in once.
- Convenience: Furnished rentals are ideal for shorter stays or frequent movers, offering a hassle-free, turnkey living experience.
- Location: Market trends can influence your choice. Furnished rentals are common in transient areas with short-term tenants, while unfurnished rentals are prevalent in residential neighborhoods.
Furnished/Unfurnished Comparison
Rent Rates
Additional Costs
Occupancy Rates
FURNISHED: generally 20-30% above standard market rate
UNFURNISHED: standard market rate
FURNISHED: a preliminary cost layout to include furnishings, fixtures, kitchen & bathware in the range of $15,000-35,000 PLUS the cost of utilities & Wifi
UNFURNISHED: No additional layout of furniture or utilities.
FURNISHED: generally a lower occupancy rate (75-85%) with exception of busy seasons or surges in demand
UNFURNISHED: generally a 95% occupancy rate especially for well-priced unit
