Furnish or not furnish?

Question

Hi BP Community,

For those of you with long term rental properties, do you furnish them?

Have you found more, less, or about the same success attracting tenants with furnished versus non-furnished units?

Jonathan Feliciano · Answer

@Nathan Gesner

May I ask: What’s the typical lease length of your non-furnished units? 6 months, 1 year, 2 years, etc.?

Nathan Gesner · Answer

I just searched www.furnishedfinder.com and found over 300 furnished month-to-month rentals in Boise. I can guarantee there is a market for it: traveling nurses, executives, people between homes, temp workers, construction crews, etc.

Nathan Gesner · Answer

Mid-term or medium-term are not real categories. Anything longer than 30 days is a long-term rental.

Natalie Schanne · Answer

@Jonathan Feliciano - it depends on your area, but I have made more money, all expenses considered, offering furnished housing.

Most of my clients start as being new to the area and looking for an apartment, then decide that my place is nice and extend. The deterioration to my furniture is definitely a factor that needs to be accounted for.

Short term occupants tend not to treat furniture very well. Oftentimes my “like new” dining room table is scuffed up after a year and a half. Everything I buy except the beds and TVs is pre-owned at 70-90% off retail and pre-assembled.

Corby Goade · Answer

This is very market specific- there is no such thing as a long term furnished rental in my market. I'd call a few local property management companies and ask them if there is a market for a product like that.

Benjamin Riechmann · Answer

Having helped other investors in different areas I would say it depends on your target demographic.  I know some investors that rent out to contract nurses.  They don't get full year leases for that, but they get more money from the companies due to that.  They also get even more money for having those place furnished.  There are other clients that there main demographic is grad students.  There parents worry about them having a proper living environment.  They are happy to pay double the rent for a furnished apartment, and if you make a deal with the right factory direct furniture shop you can get the furniture at a lower cost as you are buying more, and are making more.  I have helped clients greatly increase profit margins without having to buy through this and other methods while we spun into a real estate bubble.  The extra money they some did use to buy the few deals that are out there, but most are building up either for the downturn that we are predicting or putting money in other areas for now.  Really depends on the mindset.  I would not recommend for undergrads or vacation areas where party scenes seem to be the thing.  Near areas where there are big race months or other well know events that happen every year that people come and go crazy with alcohol.  Like all things real estate.  Location, Location, Location.  But target demographic as well.

Drew Sygit · Answer

We've always had difficulties with furnished rentals and LTR tenants.

Jose Clavijo · Answer

If you are looking for long term tenants the best option might be to rent unfurnished. It really depends on where the property is located, there might be more short term tenants that are looking for temporary housing and are willing to pay a premium.

Curtis Mears · Answer

@Jonathan Feliciano

I do not furnish anything. It opens up headaches for the landlord if you ask me.

Brad S. · Answer

@Jonathan Feliciano

My first choice would be unfurnished, unless the specific market calls for it to be furnished. But, my guess is that long term tenants typically expect an unfurnished unit.

A tenant that moves in with their own furnishings, would feel more vested in the unit, and would likely stay longer then one who can more easily leave at the drop of a hat, with less stuff to coordinate. Now, you can typically get more money for a furnished place, but if many prospective tenants already have their own furnishings, I wonder how much of a turnoff a furnished unit would be to them. What if the don’t like the way it’s furnished or they just feel weird about using furniture that may’ve been used by many people, and/or what do they do with their furnishings, or what do you do with yours. etc.

Furnish or not furnish?

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