There are a lot of reasons for you to furnish your North Austin rental house. One of these is that furnished properties can be rented out for a higher fee. Another is that you can lease to more kinds of tenants. However, this does not mean that owning a furnished rental is the best option for every location or property investor. It is important to evaluate the pros and cons first before you shop for furniture and décor.
First, you have to consider what type of tenants you will attract to your North Austin rental with your current location and proximity to amenities. For example, your rental is near a popular vacation spot or a city center that has many business professionals. You may find that offering furnished rentals is beneficial for this setup and can cater to this renter base.
Your furnished rental can serve tenants like executives who are moving across the country or investors, project managers, or business professionals who have to be at a close distance to their job sites for months at a time. Many other demographics are also now considering furnished rentals so this is also one thing to bear in mind as you study your market and location to make the best decision for your rental property.
In addition, there are other advantages to furnishing a rental house. In financial terms, furnished rentals often rent between 15% and 30% more than unfurnished ones. Do a good job with your furnishings and you can rent the property more easily as an attractive furnished space that will hold more appeal for renters than an empty one.
With all these benefits, there are also some challenges to furnishing a rental house. The biggest issue most owners face is the potential damage and wear and tear on furniture and other items on the property. It is not a question of replacing worn-out furnishings. But some tenants may not be as careful with your rental’s furnishings. Even when you choose quality items, you still have to factor in and plan for cost replacement in your budget.
Another common problem with furnishings is those small items are easily broken, lost, or even stolen. Remote controls, bed linens, lamps, and small appliances may quickly break down or disappear. It is very hard to keep track of each and every item in a rental house. This is especially true when you try to get compensation for missing or broken items. It helps to have clear documentation of every item in your property before your tenant moves in and to do a complete inventory once they move out.
Remember that the more things you keep in your rental house, the more effort you’ll have to spend on maintenance, cleaning, and general upkeep. Tenants looking for furnished rentals will expect things inside to be spotless and in good condition. Anything less, and you may start losing tenants. Tenants may decide against renting your property simply because the furnishings were not what they expected or they just didn’t like how you furnished the property. Others might ask you to remove some furnishings and you will have to find storage for these items. Situations such as these will entail additional costs that could hurt your cash flows.
You still have the final say as to whether you will furnish your North Austin rental or not. Just keep in mind the importance of knowing your ideal tenant and your local rental market so you can choose what is best for your properties.
If you would like an expert in both property management and the North Austin area to weigh in on the question of furnishing your rental property, contact the team at Real Property Management Longhorn today. Our property management experts can help you determine whether furnishing your rental house is the right move for your situation and goals.
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