If you own an apartment that your are currently renting as an unfurnished unit, you may be considering turning it into a furnished unit. For some landlords, this is an excellent move. You will be attracting a different clientele and improving your bottom line. The transition is also not difficult. You just need to consider a few basics.
Income and Clientele
You will be appealing to an entirely different clientele after you make the switch. You can attract short-term renters who are looking for a vacation spot or a place to stay during a temporary job assignment. Students are often looking for furnished rentals as well since they simply do not have the funds to buy all the furniture and other basics that they need. Although you may experience more turnover with a furnished apartment, your apartment is likely to be more in demand. The majority of apartments come unfurnished, so you should have a solid pool of applicants for your furnished unit.
Your apartment should already have the basic appliances, including a range, refrigerator, dishwasher, and microwave. At the minimum, you will need to add the basic furnishings people need to live day to day. For instance, you need serviceable living room furniture, including a sofa and a few chairs. The bedroom should have a decent bed, comfortable mattress, and adequate storage. You should also consider adding a desk and office chair to offer your tenants a work space. You do not need to provide a television or other entertainment equipment when you are decorating for college students or other tenants who are more interested in lower rent than in luxe décor. If you are looking to attract the vacation crowd, you will need to go more upscale. In that case, you will want to work on providing more amenities and furnishings that complement the apartment's style. An entertainment unit and a higher end mattress may be in order.
Landlords who rent their apartments as furnished units can charge up to 30% more in rent. Although you will have furnishings to maintain and a higher turnover, you should have a steady stream of interested renters, and you will enjoy more profit. If you decide to rent to students, you can count on having the apartment occupied for at least a semester at a time. Other types of tenants also value the furnished option. You can make your apartment ownership more profitable by furnishing it.