Should I rent my property Furnished or Unfurnished?

Reblogger Wallace S. Gibson, CPM
Real Estate Broker Owner with Gibson Management Group, Ltd.

I do not take many furnished homes.  I do have a 3 year old former model home where the owners bought the furnishings with the home and it is awesome.

Doing photos of rooms to do inventories is time-consuming; however, these types of homes are specific and unusual and fairly fun to manage. 

Original content by Dave Poletti

 

Should  I rent my property Furnished or Unfurnished?

We are often asked by property owners interesting in renting out their homes or a condominium is whether they should or could rent their property furnished as opposed to unfurnished. This is often due to a transfer out of town and not wanting to put the furnishings in storage.

While there can be some advantages to leasing a furnished property, there are many reasons not to.

Disadvantages

1.The potential market for a furnished unit is drastically smaller than an unfurnished one. Furnished housing represents less than 1% of the rental market! This means, finding a tenant can take much longer and vacancy rates will be much higher. This may mean longer periods that your property remains unrented and empty.

2.Tenants attracted to furnished units may not desire long term leases but short term ones such as 1 week to usually a maximum of 6 months.

3.Wear and tear of valuable furniture may be accelerated with tenant use versus owner use.

4.A detailed inventory is necessary prior to tenant moving in and following tenant move out to ensure contents of unit do not disappear.

5.Furnished units may produce an increased number of calls for malfunctions – not only appliances but items such as TV, stereo, even the toaster!

6. Condominium associations and owners resist long term rentals let alone short term. Most have do not allow short term leases or install high move-in/move-out fees per transaction.

Advantages

1.The unit can generate greater daily rental revenue, sometimes as much as 50% more income.

2.You are prone to attract higher quality tenants, for example those that are on assignment in the city through their work and that have higher salaries and corporate support from their companies.

3.No need to sell furniture at steep discounts or have them placed in storage.

4.Ideal for temporary no hassle relocation of owner to new geographies or a new home, without the need for a moving truck or large moving expenses.

Bottom Line

Unless your property is located in a weekly vacation destination, our suggestion for most owners is to bite the bullet and either bring your furnishings with you or put it in storage. Trying to lease your furnished property is like trying to find a needle in a haystack. Don’t count on it.

In terms of demand, do you want 1% of the market or 99% of the market?

Dave Poletti & Associates

Property Management Seattle

Real Estate Services

AGC Building

1200 Westlake Ave N #1001

Seattle, WA 98109

206-286-1100

Email - info@davepoletti.com

Website - www.DavePoletti.com

Home of - "Seattle's Best Rentals"

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Comments 4 New Comment

Rainmaker
1,515,974
Dorie Dillard
Realtor-Canyon Creek- NW, Austin TX Homes For Sale
Coldwell Banker United Realtors

Good morning Wallace,

Thanks for re-bloging this post..I missed it..I had no idea furnish properties only made up 1% of the market rentals!

April 12, 2012 04:04 AM
Anonymous #2
Anonymous
Anonymous
Great blog and great job. Keep up the good work and good luck to you this year. Thanks.
April 12, 2012 04:20 AM
Rainmaker
407,329
Michelle Francis
Realtor, Buckhead Atlanta Homes for Sale & Lease
Tim Francis Realty LLC

Wallace,

We don't do any furnished.  On occasion a client will leave an item or two with the understanding that the tenant may use it.  Not much call for that. 

All the best, Michelle

April 12, 2012 05:02 AM
Rainmaker
1,054,979
Wallace S. Gibson, CPM
LandlordWhisperer
Gibson Management Group, Ltd.

Furniture has virtually NO VALUE as good long-term residents want their own stuff.  My current residents in a furnished home, left their furniture in a "staged" home in MI while it was being sold.  Win-Win

April 12, 2012 08:24 AM
Rainmaker
1,054,979

Wallace S. Gibson, CPM

LandlordWhisperer
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