Of the many questions that both new and veteran landlords have, one of the most recurring is that of whether to rent out residential property furnished or unfurnished. This can be a tough one to answer, as there are both pros and cons to going either way – and there can be a lot to consider prior to making your ultimate decision.
Typically, most unfurnished residential rental properties will come standard with the “basic” appliances. These include an oven / stove, refrigerator, dishwasher, and oftentimes also a microwave. In some cases, the landlord will also offer a washer and dryer, either in the unit itself, or somewhere on the premises, for an additional price. But what about actual furniture such as beds, dressers, couches, tables, and chairs?
The benefits of providing these “extras” can include a much more attractive “package” that’s offered to potential tenants. This means that you will often be able to charge a higher amount of rent. On the downside, though, it could also mean that those who don’t have their own furniture could either be first-time renters such as students, or professionals who are seeking only a short-term lease.
With this in mind, the additional amount that you charge in rent may need to go towards purchasing new furniture (to replace the items that get damaged), and / or towards floating an empty property when shorter-term renters move out and you have to seek new tenants.
On the other side of the spectrum, going with an unfurnished property may not offer the full package to potential tenants. However, by bringing in their own items, the renters that you do secure can essentially make the property into their own “home.” This could help in securing longer term leases. And, even though you may not be able to charge a monthly premium on your rental amount, by securing tenants for longer periods of time, your incoming cash flow can be more predictable.
There are numerous questions that can come up as a property owner – regardless of how long you’ve been purchasing investment properties. Oftentimes, working with a property manager can help you through the process of working with tenants, as well as freeing up your time to do other things, and while still reaping the benefits of your investment. For more information on how you can take full advantage of your rental properties in the Orlando and surrounding area, give us a call.