Should You Furnish Your Rental Property?

When deciding whether to furnish your rental property, it’s important to weigh the pros and cons. While offering a fully furnished rental can attract certain tenants, it may not be the right fit for every property or every market. Here's a guide to help you determine if furnishing your rental is a smart move.

Pros of Furnishing Your Rental Property

1. Attract Short-Term Renters

Furnished properties are highly attractive to tenants looking for short-term stays, such as business professionals, students, or people in transition. This could be especially useful in urban areas or cities with a high volume of temporary residents. If you're targeting Airbnb guests or corporate travelers, a furnished rental is almost essential.

2. Charge Higher Rent

Furnished rentals typically come with higher rent, allowing you to earn more monthly income compared to unfurnished units. Tenants are willing to pay a premium for the convenience of moving into a space with everything they need.

3. Faster Turnaround

For short-term rentals, offering a furnished unit can lead to quicker turnovers between tenants. Many tenants in this category don’t want to deal with the hassle of purchasing and moving furniture, which can make your property more attractive and lead to higher occupancy rates.

4. Competitive Edge

A fully furnished rental can stand out in the market, especially if there are few others in your area offering the same convenience. In competitive urban areas, being one of the few furnished options can give you a unique selling point.

Cons of Furnishing Your Rental Property

1. Higher Initial Costs

Furnishing a rental property requires a significant upfront investment. Quality furniture, appliances, and decor can add up, and you’ll need to ensure everything is durable and tenant-friendly. Plus, there may be ongoing costs for maintenance and replacement of damaged items.

2. Increased Wear and Tear

Furnishing your rental also means you’ll have to deal with more wear and tear on your belongings. Tenants may not treat the furniture as well as they would their own, and you’ll need to budget for eventual replacements or repairs.

3. Limited Tenant Pool

Not all tenants are looking for furnished rentals. Families or long-term renters often prefer to bring their own furniture and make the space their own. Offering a furnished rental may limit your tenant pool to short-term renters, which can mean more frequent turnovers and potentially less stability.

4. Flexibility

An unfurnished property gives tenants the flexibility to create their own home, which may attract more long-term renters. Furnished properties tend to appeal to transient tenants, which can be a disadvantage if you’re looking for stability and fewer turnovers.

When to Furnish Your Rental Property

• Short-Term Rentals: If you’re planning to rent out your property for short-term stays (like on Airbnb or similar platforms), furnishing is almost always necessary. These tenants expect to move in with little more than their personal belongings.

• High-Turnover Areas: If your rental is located in a city with many short-term residents, such as students, corporate employees, or people in transition, a furnished rental could help fill vacancies faster and allow you to charge more.

• Luxury Market: In luxury rental markets, tenants often expect a fully furnished property. Providing high-end, stylish furnishings can justify charging premium rent.

When Not to Furnish Your Rental Property

• Long-Term Tenants: If you’re looking for long-term stability and tenants who will stay for multiple years, an unfurnished property might be the better choice. These tenants typically prefer to bring their own furniture.

• Family-Friendly Areas: In family-oriented neighborhoods, long-term renters often want to personalize their space with their own furniture and decor, making an unfurnished unit more attractive.

• Lower Turnover Markets: In areas where tenants tend to stay long-term, such as suburban or residential neighborhoods, an unfurnished rental offers more flexibility for prospective renters.

Final Verdict: Should You Furnish Your Rental?

We always side towards leaving your unit unfurnished as this will often lead to much more loyal tenants. Although you may not be able to charge as high of price, you will make up for it in limiting the amount of time where your unit is empty. Furnishing your rental can be a great way to appeal to short-term renters, increase rental income, and stand out in competitive markets. However, it also requires more upfront investment, comes with increased maintenance, and may not attract long-term renters. Consider your location, target market, and the type of tenant you want before deciding whether to furnish your property.

If you're unsure about your next step, contact Calmora Property Management! We’re here to help you make informed decisions to maximize your rental property's success.