Furnished or Unfurnished


Oct 23 | 5 minutes read
Furnished or Unfurnished

Many people dispute the advantages of a furnished vs. an unfurnished apartment as landlords attempt to convince excellent renters to sign lease agreements. Offering a furnished or partially furnished rental property has several advantages, including greater rent, but there are also some drawbacks.

The best thing a landlord can do is weigh the benefits and drawbacks of outfitting the rental and determine whether it corresponds to the needs of tenants in the property.

 

The definition of a furnished apartment

All the furniture a sane person would require to live comfortably is included in a furnished apartment. Since furnishings like couches, tables, and chairs depreciate with time, a furnished apartment will normally rent for more than an equivalent unfurnished flat.

  • A couch, a table, a lamp, and sometimes a coffee table or bookcase should all be present in a living area.
  • A bed, dresser, lamp-topped nightstand, and possibly a desk should all be present in a bedroom.
  • A table and chairs are necessary in an eating area.
  • A floor mat, wastebasket, and shower curtain are essential bathroom accessories.
  • A kitchen should be well equipped with all necessary equipment, dishes, glassware, pots, and pans.

 

What is meant by the term "Fully Furnished"?

Anyone can move into a completely furnished apartment immediately and start living there without having to make any additional purchases. Items such as food, perishables, and toiletries are excluded.

A renter, however, ought to be able to bring nothing more than a suitcase and immediately feel at home in the unit. Toilet paper, dish soap, and hand soap may be provided initially, but are normally the responsibility of the renter.

 

The definition of a semi-furnished apartment:

Any rental property that is not fully furnished but has some basic furnishings is considered "semi-furnished." Sofa, bed, dresser, and table and chairs are typical large pieces of furniture found in a semi-furnished apartment, with fewer smaller items present.

In a semi-furnished rental, you shouldn't count on having the same conveniences as in a fully furnished one, such as a fully stocked kitchen.

semi furnished apartment

 

The Advantages:

The benefits of providing furniture for tenants are as follows:

 

Pricing Difference Between Furnished and Unfurnished Housing

For this reason, landlords in most areas of the country can expect to get a larger monthly payment from their tenants when the flat is furnished as opposed to unfurnished. As a result of not having to buy furniture, many tenants consider it a worthwhile expense.

In many circumstances, furnished lease agreements are shorter and the price difference is smaller than it would be for an unfurnished unit in the same location. This is because the majority of those in the market for a furnished apartment are doing so in search of short-term accommodations. Short-term housing typically has higher rents than long-term housing because the landlord has to make up for the greater vacancy expenses caused by the shorter leases. In most cases, a furnished apartment will cost 20-40% more per month than an equivalent unfurnished unit. When looking at stays of less than a month, that figure rises even more.

Pricing between Furnished and Unfurnished

 

Increased Security Deposit

A higher security deposit may be required for units that are completely furnished. To give just one example, some jurisdictions cap the amount of the security deposit that a landlord can request from a tenant for an unfurnished unit, while others cap it higher for furnished units. This safeguards the landlord against having to pay to replace or repair worn or broken furnishings.

 

Consistently Predictable Market

Landlords instantly attract tenants who can afford furnished apartments–often young professionals, young families, or students who haven't gathered their own furnishings. Landlords would do well to target students and property dwellers in search of rental housing in areas with a high concentration of higher education institutions.

 

The Disadvantages:

Offering a furnished rental has numerous benefits, but it also has a few drawbacks.

 

An Increase in the Possibility of Injury

If tenants don't take good care of the apartment and its contents, the property will have to spend extra money to repair any damage that occurs after it has been furnished. Landlords with furnished units need to keep a closer eye out for actual damages and ahead of regular wear and tear, increasing their workload in terms of repairs and replacements. Landlords should anticipate the need to repair worn out furniture over time to prevent their rental property from becoming rundown.

 

Enhanced Turnover

A further disadvantage of renting out a furnished property is that tenants have a tendency to sign shorter-term leases. Furnished housing is popular among those who are expected to move frequently owing to job transfers, school graduation, or other life changes yet do not have a lot of material possessions. This group includes young professionals, students, singles, and young families.

 

The Price of Storage

If the landlord decides the furniture cannot remain at the rental property, they are responsible for arranging storage. If a tenant requests to use their own mattress and bed frame and the landlord grants this request, the landlord is liable for relocating the old bed and stowing it somewhere. For similar reasons, if the landlord wants to paint or re-carpet in between tenancies, he will need to make plans for transporting and/or storing the furniture.

The market for your rental property will determine whether you should offer it furnished or unfurnished. Each landlord must determine whether the condition results in a large pool of qualified tenants, as students and young professionals are more likely to rent furnished houses and couples and families are more likely to rent unfurnished units.

storage

 


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