Furnishing a rental property can seem like a good idea; it can potentially increase the rental price and attract another market of potential tenants, but is the investment in furnishing really worth it?
Higher rent
A review of available properties in the Tampa market indicates that there is a relatively small difference in rent between furnished and unfurnished rental properties in the area. From the information that we have gathered we see an average rent increase between $200-$250, but with the potential monetary investment and normal wear and tear of furnishings is this investment really worth it?
A More Marketable Property
Before you start getting excited you need to ask yourself, “How many tenants don’t own their own furniture?” Out of state business professionals, college students, first time renters? Unless you are aiming to attract these renters, furnishing the house will not increase marketability in fact it could do the exact opposite. How many renters will like your taste and decor? What will tenants do with their own furniture?
In short, furnishing a home does not mean that you can easily achieve higher rents or attract more tenants. In fact more often than not you may pigeon hole yourself into a longer vacancy with short term tenants. Moreover we at Real Property Management Instant Equity would highly recommend taking the same investment and use those funds to improve something else with your home. The goal of renting a property is to secure long-term passive income for yourself, not secure higher vacancy rates and lost potential revenue.