Why Rent Properties Unfurnished

Why Rent Properties Unfurnished

Renting out a property might not be as straightforward as it seems, especially considering the current state of the real estate market. It’s possible that it could take a considerable amount of time to find the right tenants. Nevertheless, to expedite the process and attract suitable tenants, there are several factors to take into account when renting out a property.
One critical decision to make is whether to rent the property furnished or unfurnished. Drawing on our experience as a property management company, we’ve encountered this question numerous times and have observed firsthand the advantages of renting properties unfurnished. Consequently, we highly recommend opting for an unfurnished rental, and here are three reasons why:

1. Increased rent doesn’t justify the financial investment:
When you decide to furnish a property, it requires a substantial financial investment, often amounting to thousands of dollars. However, the additional monthly rent you can charge for a furnished property typically only amounts to around $200 on average. The return on investment doesn’t align with the upfront costs.

2. A smaller market for furnished properties:
Renting out a furnished property can be more challenging because there is a smaller pool of applicants actively seeking this type of accommodation. While there are individuals interested in furnished homes, the goal is to appeal to the broadest audience possible, which usually consists of people looking for unfurnished rentals.

3. Difficulty in accounting for damage to personal property:
When placing a tenant in your property for a year, damages such as a hole in the wall are easily identifiable, and charges can be straightforwardly applied. However, in the case of a furnished property, damage to the furniture may not be immediately apparent, making it challenging to account for and charge tenants appropriately.

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