As a rental property investor, you might have wondered if you should market your properties as furnished or unfurnished. There are advantages and disadvantages to both, so we made a short pros and cons list to help you decide if investing in a furnished apartment is worth it.

3 Pros of Furnished Rentals

Price Difference

Furnished homes generally cost more than unfurnished homes no matter where you go, but the price will be different depending on where the place is located. Many people will not mind paying more because it saves them the hassle of finding or moving a bunch of furniture around. Many furnished places do not offer long-term lease agreements because of the fact that most of the people who are looking for furnished places need a temporary place to live. Most of the time property owners can charge between 20 and 40% more for furnished places.

Higher Deposits

Property owners are generally able to charge higher security deposits on their furnished rental property investments. This is because they need to cover themselves in the event that the tenants damage their property. You need to have the funds available to replace or repair anything that gets damaged or removed.

Predictable Target Market

Even though a furnished unit often costs more than an unfurnished one, it can attract tenants such as young families or college students, as they generally don’t have any furniture yet, and probably can’t afford to buy some. If your property is located in or near a college town, it could potentially be very lucrative.

3 Cons of Furnished Rentals

Higher Risk of Damages Occurring

In furnished rental homes, there is usually a higher risk of items getting damaged, which means that they will often need to be replaced if they cannot be restored. It is especially high risk if you do not screen tenants before allowing them to move into your rental apartment. If items get damaged, you have to fix the problem before you can rent out the unit again to other tenants, as they will not be very happy to pay a high price for something that isn’t functional.

Higher Turnover

Another downside to furnished rental properties is the fact that the leases are almost always short ones, meaning that you will be getting many different types of people coming in and out all the time. This gives you a high turnover rate, which isn’t necessarily a bad thing especially if you have a low vacancy rate.

Costs For Storage

You will need to make storage arrangements if the furniture needs to be moved out of the property for any reason. If there needs to be any work done in the apartment during tenancies, you as the property owner are responsible for the storage costs and getting the furniture in and out.

Ultimately, it is your choice to rent out our property as furnished or not, but at Specialized Property Management Orlando, we can help you decide which is best for you. We are very familiar with the rental scene in the Orlando area, and can help you decide if it would be worth it to furnish your unit or not, depending on where it’s located. We also have a very effective tenant screening method that will help you get only the best residents for your property. Contact us online or call us at 407-698-3322 for a quote!