How much to charge for furnished apartment?

Question

I have a 2/3 bedroom apartment in a two family house in Bridgeport CT. It has 3 official bedrooms, but no designated living area. The house is newly renovated with central air and heat, all new appliances, and granite countertops. We could easily get $1600-1700 in our market (unfurnished). We are planning to rent it as a furnished apartment. We are located one street over from a major hospital, so it would be perfect for traveling nurses or other hospital employees. What should we charge for the furnished apartment?

Colleen F. · Answer

@Cierra Isley look at what furnished finder listings go for in your area and ShortTermRentals on platforms like airbnb and vrbo but try to see a monthly rate on those platforms. You probably will do better in the health professional market renting by the room or as a 2 bedroom depending on the setup especially if 3 bedrooms means it has no common area.

Ruben Kanya · Answer

I agree with getting close to the data. I would:

STEP 1: See what my average daily rate would be as a short term rental buy going to airdna.co and checking your zip codes, top properties, similar properties go to the rates tab to see your average daily rate and multiply it by 30 and or go to the revenue tab and be sure to adjust your amount of rooms and how many you can accomodate. I would also go to the top properties & rentalizer tab and cross reference the amount you can make there.

STEP 2: I would also consider getting rankbreeze chrome extension, so you can see how much a property is generating a month as you look around on airbnb and/or when you click comparable/top properties via airdna

STEP 3: As a rule a thumb, when I analyze properties, I make a general assumption that someone will be willing to pay 20% more to have a furnished apartment. Remember typically there are less furnished apartments on the market which means if someone truly needs it, they 're most likely going to be willing to pay more for it because there aren't simply as many options as there are unfurnished property (law of supply & demand). Ask a realtor to do a quick search for you of how many furnished properties are in your areas you may be surprised for better or worst but nonetheless you'll have the data :)

Nathan Gesner · Answer

It's market dependent and you will need to study the market to determine what it supports. If I'm renting a single family home for a full year, having it furnished actually makes it more difficult because most long-term renters have their own furnishings.

because it's close proximity to a hospital, I recommend marketing it as a furnished month to month rental to see if you can pick up nurses or others that are willing to pay higher rate. If zoning allows, I would put it on a short-term rental site like Airbnb or VRBO.

How much to charge for furnished apartment?

Most Popular Reply