Pro’s and Con’s of Owning a Furnished Rental Property
Property owners often have to decide what perks they will offer their tenants. FOr many years, utilities-included rental options were a competitive advantage.
However, nowadays, additional specialized markets have arisen to address more specific renter needs, so property owners must adapt and continue to offer better services that fit according to the new market needs. One of these is offering fully furnished properties; many renters don’t want the hassle of moving furniture into an apartment or worrying about choosing décor.
You as a landlord must decide whether offering a fully furnished apartment is worth it for you and what trouble it may bring. Keep reading to learn more about the pros and cons of offering tenants a furnished property.
Pro’s of Furnished Properties For Landlords
Here are a few advantages for landlords when it comes to offering a furnished property to tenants.
Higher Monthly Rent
In general, furnished apartments give landlords a little extra leverage in terms of being able to charge more for monthly rent. However, it’s essential to ensure you do not charge a monthly rent that is too high; instead, it is just enough to cover the additional items you’ll provide to your tenant.
You Can Get a Higher Security Deposit
Offering your tenant an apartment full of furniture also gives you, the landlord, the ability to require protection in the form of a security deposit. The security deposit will provide you with protection and necessary funds if any damage is done to the furniture or property.
Narrow Down Your Target Market By Doing Research
Furnished apartments generally have a specific demographic. As a landlord, you should evaluate the area of your property and do some market research. If you find various universities in the area, you’ll get the chance to market your property to students looking for convenience close to their educational institute.
Con’s of Furnished Properties For Landlords
As with any situation, it’s essential to evaluate the con’s as it is the pros. Here are a few downsides to consider as a landlord when offering your tenants a furnished property.
You Have To Pay For It
Providing your tenant with more things in the property means there is a more significant potential for damage or things being broken. This can make more work for you as the landlord, and if there happens to be any damage done, appreciate your furniture or taste.
The downside is this makes for more work and expenses as you might find yourself having to move furniture back and forth or find and pay for storage.
Take Care Of Your Property With Property Managers
As a landlord, you may have a difficult time dealing with tenants and managing their requests. However, you shouldn’t have to deal with worrying about the condition of your property and your tenants. When you hire a property management company like Harbor Property Management in Rancho Palos Verdes, you can rest assured that your property will be in the best of hands.
At Harbor Property Management, we take all the necessary steps to ensure your tenant’s needs are met and your property remains in the best condition.