How much more rent can i charge if the LTR is furnished.

2 Replies

Hi BP peeps,

Just wondering how much extra rent you are charging on a fully furnished house (4B4B). What's a reasonable amount? Do you see a lot of tenant wanting fully furnished house? for long term rental not short term. 

Thanks!

This is highly dependent on the market, @Jingru Sui , but most likely $0 more. Most families that want a 4-bed to rent have a house worth of their own furniture, which they like better than yours. If the SFR is furnished, now they have to find something to do with all of their stuff, like rent a storage space. So now you're effectively raising the tenant's rent.

@Jingru Sui   Agreed with @Jaysen Medhurst   having a furnished long term rental is usually a negative value.  There may be some location specific exceptions (next to a major university that has visiting professors for example). Even in that case you are likely only going to get 10months leases and deal with yearly turn in addition to vacancies.

I've worked with owners in the past who tried to go down the fully furnished route for a long term rental.  They ended up with longer vacancy, lower rent and lost revenue.  Once they removed all the furniture, 4/2 home was rented in two weeks.