Furnishing your rental property is a big decision to make. A fully furnished unit generally has everything your tenants need to move in without much effort. You also have the option to do a partially furnished unit or an unfurnished unit for your renters.
Whether you choose to furnish your rental property depends on your target renters, the location of your property, and your personal preferences. Whether you want to go semi-furnished, completely unfurnished, or fully furnished, here’s how you can decide if furnishing your income property is the right decision!
When a Fully Furnished Unit Is Profitable
A fully furnished unit makes sense for some rental properties. For example, if you have short-term leases, your tenants will likely expect the unit to be completely furnished. These can include rental properties where your tenants are often:
- College Students
- Military Members
- Vacationers
These tenants don’t want to have to move heavy furniture, mattresses, silverware, and other odds and ends when going from place to place. It’s easier for them if the unit is furnished and they can move in right away and pick up and go when their lease is done.
If you have a rental property that’s popular with any of the above tenants and don’t offer at least a semi-furnished unit, you could be missing out on tenants for your property!
Benefits of Furnishing vs. Unfurnishing Your Unit
There are benefits to furnishing your unit, but of course, there are benefits to keeping it unfurnished as well. You can generally charge more rent for furnished units and get a higher security deposit for your property.
However, the cons to keeping your unit furnished include handling damage to your furniture and potentially having to move furniture if you find the right tenants but they don’t want certain pieces of furniture in there.
For unfurnished units, you won’t have the added expense of purchasing or maintaining furniture. You also won’t have to itemize pieces and document their condition prior to tenants moving in. However, your unit may suffer more damage from tenants moving their furniture in and out.
Long-term renters also generally like to make the space their own and may not want to see the unit already furnished. Knowing your rental market and the types of tenants you’d like to see can help you weigh the pros and cons of furnishing your income property.
How to Safely Furnish Your Unit & Protect Your Investment
Furnishing your unit requires a few extra steps to be sure you protect your investment. Things you should do when furnishing your unit include:
- Screening tenants. You screen your tenants anyway, but when following up with former landlords, you can ask more specific questions about the condition of the unit to help you get a better understanding of how tenants care for the property.
- Getting insurance. Having insurance on your items can help you cover the costs of damage or replacing items should your furnishings see more than normal wear-and-tear during the leasing period.
- Conducting inspections. During your regular inspections of the property, be sure to check the furniture to see how it’s being used so you can document its condition.
- Including documentation. When tenants sign the lease, include documentation of the number of items in the apartment and their condition. You can refer to this list when they move out as a checklist for whether or not you’ll need to use their security deposit to replace or repair items.
Let Us Assist You With Your DC Rental Property
Not sure whether furnishing your income property is the best idea? Reach out to us at FAS Management. Our professional property managers help investment property owners in DC maximize their investments and find the right tenants for long-term success. Call us at (202) 337-5080 today!
