Posted by alexander.hassoulas@upkeepmedia.com & filed under Uncategorized.
As a landlord, there are certain decisions you’ll have to make when renting out your property. Traditionally, common utilities that landlords provide tenants include electricity, gas, and water. However, just like most things nowadays, the rental market has evolved.
Additional specialized markets now require landlords to step above the basics. One such market is the one looking for furnished apartments. Renters in these markets have no interest in furnishing their own apartments. Usually, such renters only want to occupy the homes temporarily while they’re in school or visiting.
With that in mind, is the extra money and time required to furnish an apartment worthwhile for landlords? Well, here is everything you need to know!
What Is a Furnished Apartment?
A furnished apartment is just that: an apartment that is move-in ready. It typically contains everything a renter needs to live comfortably in the home during their stay.
That said, what exactly is included in a furnished property will differ, as there is no hard and fast list of what should be there. What is included will depend entirely on the landlord.
Generally speaking, though, a furnished apartment should contain certain basic items.
- Kitchen – Some basic essentials include appliances, cookware, dishes, glassware, utensils, and pantry staples.
- Bedroom – Here, essentials include a bed, a dresser, a nightstand, a mirror, a rug, a closet, and a window treatment.
- Living Room – A furnished living room should have things like a sofa, coffee table, a TV, a rug, curtains, artwork, and even potted plants.
- Bathroom – A basic furnished bathroom should have a toilet, a sink, a shower, a tissue holder, a soap dispenser, a bath mat, towels, and a wastebasket.
- Dining Area – Basic essentials in the dining area include a dining table, dining chairs, a rug, a sideboard, a chandelier, and a vase.
Some landlords may choose to provide more or less of these items.
What Kind of Tenant Rents a Furnished Apartment?
Furnished apartments typically appeal to tenants looking for short-term accommodation, who want to stay in a place long enough to want more than a hotel, but not long enough to want to buy a home.
What Are the Pros of Renting Out a Furnished Apartment?
The following are the pros of renting out a furnished apartment.
You Can Charge More Rent
This one is pretty evident. A furnished apartment will obviously go for a higher rent than an unfurnished apartment.
To price your rental, make sure to do due diligence first. The last thing you want is to either underprice or overprice your home. The former will mean leaving money on the table, whereas the latter may make your home less desirable to prospective tenants.
If you’re just starting out as a landlord, it may be in your best interest to hire a reputable property management company to do the pricing for you.
You Can Ask for a Higher Deposit
A security deposit helps cushion a landlord against possible financial damage. Such damage can result from things like nonpayment of rent and excessive property damage.
Now, with a furnished apartment, you need to cushion yourself more. This means asking for an even higher security deposit than you would if renting out an unfurnished rental.
Make sure to abide by the state security deposit limit laws. In Kansas City, landlords must not ask for a security deposit exceeding 1.5 months’ rent for a furnished apartment. (KS § 58-2550(a)).
You May Have an Easier Time Marketing the Property
Furnished apartments usually appeal to a target renter group. By knowing who you’re targeting, you’ll be able to narrow down your marketing campaign, resulting in the quick filling of vacancies.
You May Be Able to Rent Small or Awkward Spaces
If you’re renting out a small or strangely shaped apartment, you may have a hard time renting it out, as a tenant’s furniture may not be able to fit comfortably. That wouldn’t be a concern with a furnished apartment though, as you can find and fit the right furnishings for the space.
What Are the Cons of Renting Out a Furnished Apartment?
The following are some disadvantages to consider before renting out a furnished apartment.
You Require a Higher Investment
Furnishing an apartment means spending additional money on basic furnishings and having to conduct more extensive cleaning between tenants.
Tenants Usually Don’t Stay for the Long Term
Furnished rentals usually appeal to tenants looking for short-term accommodation, which is why leases for such properties are often month-to-month or shorter.
There Is an Increased Risk of Damage
Providing more things for the tenant means an increased risk of damage. That’s why it’s important to ask not only for a higher security deposit, but also to have a thorough tenant screening process in place.
Conclusion
Whether or not renting a furnished apartment is worthwhile will depend on the area your property is in and the kind of lease you want to implement. Is your property near a college, an airport, or a travel hub, for instance? If so, then renting a furnished apartment may make sense.
If you have a question or need expert help in managing your apartment unit, Young Management can help. We’re a top property management company in Kansas City, Missouri. Get in touch to learn more!
