There are various sound reasons why you might consider furnishing your Schaumburg rental house. Not only can you charge a higher rent for a furnished property, but as a matter of fact, you may be able to effectively keep your rental leased to a vast variety of tenants. But on the other hand, owning a furnished rental isn’t right for every location or property investor, so it’s imperative to take into account the pros and cons before you start shopping for furniture and décor.
One of the very first things you should think carefully about is what type of tenants you will attract to your Schaumburg rental property contingent on its location and proximity to amenities. Suppose your rental is near a popular vacation spot or a productive city center bringing in new business professionals. If such is the case, you may identify that offering furnished rentals are one really effective strategy to tap into this renter base.
Furnished rentals can be both short- and long-term, whether your tenant is an executive moving across the country or an investor, project manager, or quite a few business professionals needing to be near job sites for months at a time. Other demographics are in search of furnished rentals, likewise, so it’s significant to learn your location and market well before deciding who your rental property is best suited for.
Together with attracting a new group of potential tenants, there are some advantages to furnishing a rental house. In financial terms, furnished rentals in many cases rent between 15% and 30% more than unfurnished ones. If you’ve done an excellent job with your furnishings, it can even make you rent the property more easily owing to the fact an attractively furnished space will, in all likelihood, hold more appeal for renters than an empty one.
Obviously, side by side with the advantages, there are quite a few disadvantages as well in furnishing a rental house. Probably the most serious problem that owners of provided properties face is potential damage and wear and tear on furniture and other items. There is no question that furnishings will need to be replaced regularly with new ones as they begin to show signs of age and wear. Though it’s definitely true that tenants may not be as careful with a rental’s furnishings as they would with their own. Choosing good quality, durable items can essentially make sure that they last longer, though the cost of replacement is one of the things you’ll just need to plan for in your budget.
One general problem with furnishings is that those small items are easily broken, lost, or even stolen. Remote controls, bed linens, lamps, and small appliances may quickly break down or disappear. It is laborious to track down every single item in a rental house, which will bring on more unwanted work for you as you try to do so. This is necessary if you want to get compensation for missing or broken items. You will have to prepare clear documentation of every item in your rental property in advance of your tenant moving in and then you have to complete inventory again when they move out.
It’s likewise essential to keep in mind that the more things there are in your rental house, the more time and effort you’ll spend on maintenance, cleaning, and general upkeep. Tenants searching for a furnished rental will require every item in the house to be spotless and in good condition. Anything less than what they anticipate, and you may start losing tenants. If prospective tenants don’t like how you’ve furnished the place or find the furnishings in less-than-ideal conditions, they may come up with a decision not to rent your property on that fact alone. They may, moreover, call upon you to remove some of the furnishings, forcing you to find someplace else to store the unwanted items. Any of these situations could result in additional costs that will indeed hurt your monthly cash flows.
In the final analysis, the question of whether you should furnish your Schaumburg rental is one only you can really answer. Though, surely, as long as your decision is based on an in-depth understanding of your ideal tenant and local rental market, you can feel confident that the choice you make is the best one for you and your properties.
If you would like an expert in both property management and the Schaumburg area to weigh in on the question of furnishing your rental property, contact the team at Real Property Management Northwest Chicago Suburb today. Our property management experts can help you determine whether furnishing your rental house is the right move for your situation and goals.
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