Should You Furnish a Room You’re Renting Out? A Comprehensive Guide
The decision to furnish a room that you're renting out depends on a variety of factors, including your target market, rental price, condition of furniture, lease terms, and flexibility for tenant turnover. In this article, we will explore these factors and provide guidance to help you make an informed decision.
Target Market
The first consideration is your target market. Students and short-term tenants, such as those who use Airbnb, may find furnished rooms more appealing. However, long-term renters may prefer unfurnished options to make the space their own.
Rental Price
Furnished rooms often command higher rents, but the increase in rent must justify the costs of purchasing and maintaining furniture. It's crucial to carefully evaluate whether the potential increase in income outweighs the expenses.
Condition of Furniture
Ensure that the furniture you choose for renting is in good condition. Poor-quality or damaged furniture can lead to tenant dissatisfaction, which may result in disputes or negative reviews. High-quality furniture enhances the overall attractiveness of your rental property.
Lease Terms
Clearly outline in the lease what furniture is included. This helps avoid any confusion or disputes later on. Providing a detailed inventory of the furniture can be particularly helpful in preventing any misunderstandings.
Flexibility
Furnished rooms offer more flexibility in tenant turnover. Many people, especially those looking for short-term rentals, prefer furnished options. This can be particularly beneficial if you frequently need to change tenants.
Options for Unfurnished Rentals
While furnishing a room can be appealing, it is equally important to offer unfurnished options. This provides flexibility for both you and your potential tenants. Renters who already have their own furniture may prefer the option to bring their belongings, which can make them feel more “at home.”
Common Practices
One common practice is to provide a basic set of furniture: a bed, a table, a chair, and a wardrobe. These essentials can be rented out, with additional furniture available for those who want more. This balanced approach ensures that both furnished and unfurnished options are available.
Market Considerations
For college students, furnishing a room is often a must. Higher-end rentals, such as short-term business rentals, generally prefer a private space with separate external entrances. Therefore, unless you can accommodate these specific requirements, higher-end tenants may not be interested in renting your room.
Testing the Market
Another practical approach is to run a dummy ad without furnishings. This can help gauge interest in both furnished and unfurnished options. If you receive more inquiries about furnished rooms, it may indicate that this is a market you should cater to. However, it's worth noting that inviting someone into your home to view the space can be challenging and may not be necessary for this purpose.
Ultimately, the decision to furnish or keep a room unfurnished depends on your goals as a landlord and the preferences of your target tenants. Offering a balance between furnished and unfurnished options can help you attract a wider range of potential tenants and increase your chances of successful rentals.