So, you’ve just bought a second property, and are getting your condo unit ready to Rent. Congratulations! This is a huge step toward financial freedom, and one that you should feel proud about and excited to take. You’ve got some great photos of the place and are ready to start advertising through all the avenues you can think of to get that perfect tenant. There’s just one question left to consider: do you want to clear the place out before Renting, or do you want to include those furnishings when you lease the unit?
The Benefits of Renting a Furnished Unit
The choice to rent out a furnished condo versus an unfurnished unit is actually a fairly nuanced decision, and one that could affect everything from the type of tenants you bring in to the monthly returns you see on your property. Renting a fully-furnished unit involves more than just leaving the couch and bookshelf in the unit – you should be providing a space that’s entirely functional and essentially move-in ready. Your condo should offer all the same accoutrements that someone would expect to find in a luxury, boutique hotel, right down to the cheese grater and the garlic press! It’s also a good idea to take an inventory of everything you’re furnishing the unit with, in case anything it gets damaged or goes missing. If you’re able to provide this sort of a set-up, there are a number of pros that go along with renting a fully-furnished space, including:
- Convenience. Moving is awful. Nobody likes it. With a furnished unit, not only do you not need to move everything out, but the new tenant won’t have to move anything in. Win-win!
- Higher rent. A fully-furnished unit automatically commands a higher rent than a non-furnished space – up to 25% more than the same space would bring in if it were unfurnished!
- Quality of tenant. Oftentimes, with fully-furnished units and higher rental fees, you’re going to be looking at catering to a different type of clientele – think professionals, executives, and a generally more mature, affluent crowd. Unfortunately, many of these renters are often looking for something much more short-term in nature and can be difficult to come across, but generally, you can rest easy once you secure a renter, knowing that the unit will be taken care of accordingly in your absence.
There are lots of positives when it comes to renting out a furnished unit, but don’t rush to post that “Tenant Wanted” ad yet – there are a few caveats to consider as well.
Maybe Unfurnished is the Way to Go?
For all the benefits of renting your unit out fully-furnished, there are some things worth considering before your rush too quickly into things:
- Tenants with furniture. Many people within the rental pool already have their own furniture, and won’t even consider a place if it’s fully-furnished – what would they do with all of their own stuff?
- Cleanliness.This can be a sticking point when it comes to fully-furnished units, especially when it comes to bedding. Often, it’s not a bad idea to request that a bed is the one thing a tenant furnishes themselves – or that they at least provide their own sheets and linens. This avoids any uncomfortable conversations regarding hygiene – either for renters coming in, or during the outgoing walkthrough.
- Owner comfort level. It might seem this goes without saying, but it’s worth noting that as the owner, you should only offer a fully-furnished rental if you’re comfortable with the idea of someone else being there, making use of everything in the unit. Be sure not to leave behind anything valuable – sentimental or otherwise – as it’s just not worth the risk of something happening to it. And if you’re not comfortable leaving your belongings there for someone else to enjoy, just don’t do it!
Drew Spencer has years of experience in property management in Calgary. He suggests that condo communities should choose experienced and accomplished management services that focus on improving efficiency and increasing cost savings. He believes that every condo association, whether small or large, should be managed by a professional company to maintain high quality standards.
This post first appeared on Evergreen Properties And Investments - Long Beach California Real Estate, please read the originial post: here