Should I Rent My House Furnished?
Every Regina landlord will have to decide whether to furnish their rental or not. It’s logical to think this over given that furnishing a rental home will take time, additional effort, and money.
Before moving in, renters typically look at the available amenities in your rental unit. Due to the changing market, landlords have taken to offering furnished rental homes in order to find good, long-term tenants.
Furnished rentals are a great incentive for tenants to move in right away, since they don't have to spend much on buying and moving furniture and appliances. Students and young professionals new to their careers usually prefer to live in a fully-furnished property for teh sake of convenience.
So, should you furnish your rental before putting in on the market? Let's look over the basic considerations.
What Do Furnished Homes Include?
Furnished rental spaces require an initial financial investment from landlords. In general, tenants expect furnished units to include the following:
● Dining areas are expected to have a dining table and chairs.
● Kitchens must contain the usual appliances such as a stove, refrigerator and oven. Some may expect additional furnished appliances like a microwave, coffee maker and toaster.
● Living rooms must have a sofa, table and possibly TV set.
● Bedrooms are expected to contain a bed, cabinet and nightstand.
Different landlords will add a few more pieces depending on their preferences. They may choose to set up lamps, furniture and more stylish pieces around the home.
What Kind of Tenants Want Furnished Units?
While many renters find furnished rentals attractive, the biggest demographics are usually:
- Students and young professionals
- Travelers who prioritize convenience
- People who aren't from Regina and want to stay for a short while before deciding on living there long-term.
Furnished rentals appeal to those don’t want to move in with plenty of belongings to drag with them. If you're offering short-term leases, tenants may not want the trouble of hauling their things in and out of the unit for just a few months' stay.
Cutting back on moving fees is a great financial incentive for most tenants.
What Are the Advantages of Furnished Rentals?
1. You May Be Able to Charge More Rent
With furnished rental homes, you can usually set the rent rates higher. This requires careful research, though; set the rate fairly so that renters don't pick other places.
However, the price also can’t be low enough that it barely covers the added cost of the furnishings. Take time to assign an accurate pricing for your rental property based on market research.
2. You Can Request Higher Security Deposits
Since your rental home is furnished with appliances and furniture, you'll need to ask for a higher security deposit to protect these items.
In case the furniture is scratched up by a pet or the tenant breaks an appliance through misuse, you’ll feel relieved knowing you can cover the damage with a tenant's security deposit.
3. Reduced Risk of Property Damage During Moving
Since the big bulky furniture will already be in your unit, tenants won't have to transport heavy items during move-in and move-out. This reduces the risk of scrapes/scuff marks on floors and walls.
4. Target a Wider Range of Renters
With a furnished rental, you'll have the opportunity to market your property to different types of tenants.
For example, you can market your property as a vacation rental. Tourists expect furnished vacation properties. You can also opt to advertise to students, young professionals and temporarily-relocated workers.
As a Regina landlord, you can take advantage of both the short-term and long-term rental market for your furnished investment property.
What Are the Disadvantages of Furnished Rentals?
1. More Investment Needed
Along with the obvious cost of buying furniture and appliances, landlords also need to keep up with maintenance. This means regular inspections to ensure furnishings are in good condition.
Minor property damages need to be repaired right away. Cleaning is also essential to slow down the wear and tear of appliances. With furnished rentals, your responsibility for preventive maintenance rises.
It’s best to create a solid lease agreement to clearly address damages caused by tenants.
2. Tenants May Be Looking for Short-Term Stays Only
Given that furnished rental homes generally attract renters looking for temporary housing, this means that landlords need to actively market the units continuously.
Travelers often stay for a month or less, and students leave after the end of their semester. Most young professionals move out once they start to earn a higher salary.
Although rental rate earnings are substantial over a long period, it’s best to ensure that the rental has little vacancy gap. If you plan on having a short-term rental, you'll need to actively market your property before your current tenant leaves.
What Are Some Things to Consider Before Furnishing A Rental Property?
Before furnishing your rental, it’s best to evaluate the following factors to ensure maximum profit:
1. Location of the rental home
Check out the neighbouhood and area. Is it near a university or major attractions in the city? Is the transit system near? Is it within walking distance to a business district or large corporate hubs?
Location is crucial if you want to attract students, workers and tourists as tenants. They need to have easy access to schools, offices and main tourist spots. Make sure to mention these nearby amenities when advertising your rental.
2. Potential tenant base
Evaluate whether the population in your area is made up of students, traveling businessmen or tourists. Without a strong tenant base, it’s risky to invest in furnishing your rental.
3. Market conditions
Although it can be lucrative to rent out furnished rentals, assess if the market can afford a higher rent price prior to furnishing your unit.
Having a furnished rental home can mean higher earnings, but it’s best to perform research beforehand. Check important factors such as your location, tenant base, and general market conditions.
If you're looking to find great tenants in Regina, Leenan Property Management can help! We've assisted countless landlords in finding reliable tenants and can manage your property and renters on your behalf, saving you time and effort. Get in touch today!