Why Unfurnished Rentals Trump Furnished Rentals
5 Reasons to Stay Away from Furnished Rentals
As a landlord, choosing between offering furnished and unfurnished rentals is a critical decision. While furnished rentals may seem like an attractive option due to potentially higher rental income, there are compelling reasons why unfurnished rentals can be a better choice for landlords. Below, we'll explore the advantages of unfurnished rentals from a landlord's perspective.
Reduced Maintenance and Replacement Costs
One of the most significant benefits of renting out unfurnished properties is the reduction in maintenance and replacement costs. Furnished rentals often require frequent repairs and replacements, as tenants may not treat the provided furniture and appliances with the same care as they would their own belongings. In contrast, unfurnished rentals typically have fewer items that require maintenance and replacement, reducing the landlord's overall expenditure on upkeep.
Lower Tenant Turnover
Unfurnished rentals tend to attract tenants who are seeking a more extended stay, such as families or individuals looking for a stable living arrangement. Furnished rentals are often chosen by short-term renters, such as students or temporary workers, who are more likely to move frequently. With unfurnished rentals, landlords can enjoy lower tenant turnover rates, which means less time and money spent on advertising for new tenants, cleaning, and preparing the property for the next occupant.
Decreased Risk of Damage
Furnished rentals are more susceptible to damage, as tenants may not always treat the provided furniture and appliances with care. This can lead to costly repairs or replacements and potentially impact the property's condition. In unfurnished rentals, tenants are responsible for furnishing their living space, which usually results in a greater sense of ownership and responsibility. They are more likely to take better care of the property since they have personally invested in their furniture and belongings.
Broad Tenant Pool
Unfurnished rentals appeal to a broader range of tenants. While furnished rentals may cater to a specific niche, such as short-term or corporate renters, unfurnished properties can attract a wider tenant pool, including families, professionals, and long-term renters. A larger tenant pool increases the likelihood of finding a tenant who fits the property's requirements, leading to shorter vacancy periods and consistent rental income. This shortened vacancy period can be clearly seen in the graph above.
Personalization
Unfurnished rentals give tenants the freedom to personalize their living space with their furniture and decor. This often results in tenants forming a stronger emotional connection to the property, which can lead to longer tenancy durations. Furthermore, since tenants furnish the property themselves, they are more likely to stay longer, as the effort and cost associated with moving their belongings can act as a deterrent to relocating.
While the allure of furnished rentals may be tempting for landlords seeking higher rental income, unfurnished rentals offer several advantages from a landlord's perspective. These advantages include reduced maintenance costs, lower tenant turnover, decreased risk of damage, a broader tenant pool, and the opportunity for tenants to personalize their living space.
Ultimately, the choice between furnished and unfurnished rentals depends on various factors, including location, target tenant demographic, and the landlord's preferences. However, for landlords seeking a more stable and cost-effective rental property, unfurnished rentals often prove to be the smarter choice.
