Should I furnish my rental property?
One of the decisions you have to make when deciding to rent your home or investment property is whether or not to have it furnished. There are a number of factors that go into whether or not a furnished rental home can be considered an option:
- Location – Where is your rental property? Is it a single-family home in a suburb? Is it an apartment in downtown Bethesda? You need to know where having furnished rental homes is the norm. For instance, a family renting a home in the suburbs is likely to have a lot of their own furniture, so having a furnished rental may not make as much sense. In an apartment in the city, on the other hand, there could be young professionals or young adults just out of college who haven’t amassed a large collection of furniture themselves.
- Renters – As we just mentioned, you need to know who is renting—but not just their home needs; you also need to know the demographic you’re looking for. If you’re planning on renting to primarily older residents or families, a furnished rental home probably isn’t an option.
- Price – You have to decide if the price of the furniture and its depreciation is worth the slight increase in rent—and whether or not renting the property at a higher price will be doable in the location.
In the end, whether or not to have a furnished rental home is at the discretion of the home owner, but it is always a good idea to talk to a property manager before you make a decision. Property managers in your area will be familiar with what is popular and the rental trends around you. They will be able to advise you whether or not to furnish, and if so, what’s important to have in the home.