A common question that property owners ask themselves is – Should I rent my Orlando rental property furnished or unfurnished?
This is usually based on personal preference and whether or not you plan to rent out your property long-term or more for short-term rentals. Orlando is a very touristic area, which is known for renting more short-term due to visitors only wanting to stay for a few nights up to a couple of weeks.
Many property owners believe that they can make more money if they rent out their properties short-term because of the higher rent price. When someone wants to rent out a property for a longer period of time, you need to be more competitive with other rental properties that are renting out their places long-term.
Let us take a closer look at whether you should rent your Orlando rental property furnished or unfurnished.
Furnished Home
Depending on the landlord, a furnished home can either be fully or semi-furnished. The difference between both is that a fully furnished home contains everything that a tenant would need in order to move in and not be required to purchase any household items (all day-to-day essentials are provided). A semi-furnished property, on the other hand, will contain fewer items.
Examples of what would encompass a furnished home include:
- Living room furnishings
- Bedroom furnishings
- Bathroom furnishings
- Kitchen furnishings
One of the biggest advantages of renting out a fully furnished property is that you can charge a lot more for rent.
However, determining whether to offer a furnished or unfurnished home depends on who your target market is and the rental niche you are after. If you plan on renting out your property to students, they are going to require a furnished place.
Don’t forget, as a landlord you should have insurance on your belongings and you can ask for a small deposit so in case anything happens, you can cover the cost of the materials.
Cons of a Furnished Home
There does come a con with renting out a fully furnished rental property and that is the cost of insurance and maintaining the furniture. Additionally, the costs of wear and tear and replacements can easily add up. You need to weigh the pros and cons and get a few opinions from others around you.
- Would they want to rent out a place that is furnished or be given the opportunity to furnish it themselves?
- Take into consideration how the place would look on the market if it were not furnished?
- How much realistically do you think you could charge for this place?
Why Choose Furnished Over Unfurnished?
The main argument why renting out your property furnished is better than unfurnished is because you are offering a complete package. Renters do not have to go out and buy extra things because everything is already provided. Moreover, your property will look a lot more attractive on listing websites and to potential renters.
Tax Benefits
Since you can charge more for rent on a furnished property, you always have tax benefits that come with it. For example, your assets are depreciating over a 5-year period of time, which means you can claim some of your furniture and accessories under this depreciable asset.
If you can’t afford to go out and buy new furniture to furnish your property, you can look into renting furniture from local sellers. Many people choose this route because it is substantially less expensive, but what comes along with this option is that you are also responsible for the furniture.
The Bottom Line
The big question you need to determine the answer to is – who is going to be your target renter?
A) Is your rental in a trendy part of Orlando where most tenants are between the ages of 20 and 30 years old?
These prospective tenants will not own much furniture and will not be able to afford to go out and buy new furniture.
B) Is your target market mostly families with kids?
These prospective renters will most likely own their furniture and will need the space to utilize what they have already bought.
As a landlord, it is good to distinguish ahead of time who you are targeting for your Orlando, Florida rental in order to come up with a good rental price, which is competitive in your market. You do not want your property to be on the market for a long period of time, you want a fast return. If a tenant moves out, you want another moving in as soon as possible.
One of the best ways to achieve just that is by hiring a professional property management company. Give us a call today!