As you prepare to move out of your rental property, you may be considering whether to leave your furniture behind. While this choice has its conveniences, it's essential to be aware of how it can impact prospective tenants, their rental cost expectations, the potential wear-and-tear on your furnishings, and even the length of time it takes to rent your property. In this blog post, we'll delve into these critical considerations to help you make an informed decision.
1. Cost of Furniture Storage for Prospective Tenants
Imagine you've decided to leave your furniture in your rental property, but prospective tenants already have their own furnishings. In such cases, they may need to find a solution for storing their belongings. This could entail renting storage units or seeking alternative storage options, which inevitably comes with added costs.
For many tenants, these additional expenses can significantly impact their overall budget when considering your property. Consequently, some may expect a reduction in rent to offset the inconvenience and cost of storing their furniture elsewhere. It's not uncommon for tenants to negotiate lower rent rates when faced with this situation, as they perceive the need for extra storage as a drawback of the property.
2. Limited Tenant Pool
Leaving your furniture in the property also has the potential to limit your pool of prospective tenants. Furnished rentals often attract a specific demographic of renters, typically those in search of short-term or temporary housing solutions. While this market segment can be lucrative, it may not align with your goal of securing well-qualified, long-term tenants.
By narrowing the rental pool to those seeking furnished accommodations, you could inadvertently exclude tenants who prefer unfurnished properties. This narrowing of the tenant pool might lead to extended vacancy periods, resulting in lost rental income. It's essential to consider how this aligns with your investment objectives.
3. Wear and Tear on Furnishings
Another significant consideration is the potential wear and tear on your furnishings. Furnished properties tend to experience more significant wear and tear due to tenant use. This can encompass everything from furniture to appliances and decor.
One challenge with furnished rentals is that wear and tear can be subjective and challenging to attribute to a specific tenant. What one tenant considers normal usage, another might perceive as damage. Consequently, there's a risk that you may need to invest in repairs or replacements, further increasing your maintenance costs.
4. Length of Time to Rent and Tenant Renewals
It's important to note that furnished properties often take significantly longer to rent than unfurnished ones. The narrower tenant pool and the need for renters seeking furnished accommodations can result in longer vacancy periods, impacting your rental income.
Furthermore, tenants renting unfurnished rentals are statistically more likely to renew their lease at the end of the year compared to tenants renting furnished rentals. In fact, research indicates that tenants in unfurnished properties are three times more likely to renew their lease. This means that by offering an unfurnished rental, you increase the chances of having stable, long-term tenants who provide consistent rental income.
While leaving your furniture in your rental property offers convenience, it's vital to weigh these considerations carefully against the benefits. Consider your goals, target tenant demographic, and the potential financial implications. Remember that what works well for one property may not be suitable for another.
At Gulf Coast Property Management, we recommend thoroughly assessing these factors and having a clear strategy in place when it comes to pricing your furnished rental property. We are here to assist you in making informed decisions about your property management. If you have any questions or would like further guidance on this matter, please do not hesitate to contact us.