Are Furnished Long-Term Rentals Worth the Hassle?

Question

Hey BP Community!

Lately, I've been getting a lot of contacts from Airbnb owners who are looking to pivot from short-term to long-term rentals. Many of them want to keep the property furnished, assuming that doing so will somehow boost rent interest or ease the transition.

As someone who's been in the property management space for a while, I personally believe long-term rentals work best unfurnished. In my experience, furnished units can complicate things.

And I also understand that getting rid of the furniture, whether is selling it or storing it can be a hassle as well.

Curious to hear from the BP community on your take on furnished long-term rentals? Have you had success with them, or do you avoid them like I try to?

Looking forward to hearing your thoughts and learning from your experiences!

Drew Sygit · Answer

We've dealt with this numerous times over the years.

Have listed the same property for rent furnished & unfurnished and at least 90% of the time we end up renting them out unfurnished.

Would recommend trying renting them MTR. The minimum 30-day stays aren't that difficult to run alongside your LTR rentals:)

Adam Bartomeo · Answer

With the collapse of STR's we have transitioned 30 properties from STR to annual in 2 years. We tried to rent EVERY one of those properties furnished, with the option of being unfurnished. NOT ONE has ever rented with the furniture, ZERO.

I am very clear with the owners that want this, we will attempt to rent it with the furniture, but annual tenants always have their own furniture AND we wind up unfurnishing the property.

You just need to be clear and upfront with the owners.

Clare Pitcher · Answer

Hi Terrance, great question!

Being a property manager in Milwuakee, we've seen it all and have found that long-term, unfurnished rentals typically attract more tenants. Furnished units are harder to manage because of the added items and the wear and tear on them. Additionally, some tenants may not like the furniture that is at the property and may want it removed. The only place I've seen long-term furnished units be successful is college towns with 9-month leases that follow the school year. Hope this helps!

Tony Savage · Answer

Tell the Airbnb owners not to do it Terrance! More of a hassle than it's worth. Tenants will be calling complaining about the couch having a tear in the upholstery or one of the legs on chair is loose. It will not end well!

Myka Artis · Answer

I've never heard of furnished long-term rentals unless they're trying to get into mid-term rentals. If they are trying to secure mid-term rental cash flow by renting long-term, they can reach out to ALE and All That Housing to see if they have any insurance clients looking to book something unfurnished long-term. They will usually have something available. Honestly, if it's furnished, the best play is mid-term term and most of those can turn into 1-year long-term rentals depending on why the client needs housing.

Colleen F. · Answer

@Terrance Teague They are seeing hype about midterm rentals and think there is more money to be made. It is also the hassle of unfurnishing. The size of the unit and area matters. Our area is a bit unique in that year round rentals are harder to find and the one and two beds some want them furnished because they are here for grad school and gone. or they are relocating to the area. I have long term unfurnished renters for most units but have considered turning one 1 bedroom to long term furnished because it always gets a turnover tenant and there is the furniture moving and painting. Let them try. Might have to shift advertising. If it is a big place not sure if furnished is a big market.

Colleen F. · Answer

@Myka Artis people didn't used to say mid-term rentals. They were just furnished rentals typically rented month to month. This is likely what most of these clients are thinking they can do. Furnished longer term (mid-term rentals). They think it will be easier than unfurnished but it just comes with different challenges.

Adam Bartomeo · Answer

@Drew Sygit 10% rental rate is KILLER! We are at 0%...

Scott Nachitilo · Answer

Hey Terrance, great question hitting on a real pain point! I totally feel you on the hassle factor - managing furniture wear-and-tear, logistics of storage/sale, and attracting the right tenant for furnished long-term can be a headache. While unfurnished is definitely simpler operationally, I've seen furnished work well in specific niches: targeting corporate relocations (often with relocation packages), traveling professionals, or folks in temporary housing situations (like major home renovations).

The key seems to be the location (near corporate hubs/medical centers) and charging a significant premium to offset the extra costs and turnover risks. For most generic LTRs though? Unfurnished wins for ease.

Are Furnished Long-Term Rentals Worth the Hassle?

Are Furnished Long-Term Rentals Worth the Hassle?

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