If you’re looking to maximize your rental income, adding upgrades with a high ROI is the best way to go. To that end, some investors make extra cash by saving their tenants the stress of home shopping by including furniture in their apartments. However, that also comes with a higher risk for your property, and to some landlords, the additional upfront cost and added maintenance fees aren’t worth it. That’s why we’ve put together this article to help you figure out if furnishing your rental increases the rent.
Definition of a Furnished Rental
As the name implies, a furnished rental is a residential property up for lease with essential furniture. Tenants don’t usually need to bother with buying or moving their bed, couch, or dishwasher, because a furnished rental already has these fittings. The level of furnishing varies, depending on the rental. For example, partially furnished apartments only have the necessities, such as a bed, sofa, and table. On the other hand, fully furnished rentals go beyond the basics to include items like cutlery, bedding, towels, and even a TV. Discuss with a local property manager in Northern Virginia to gain insights on which furnishings add value.
Types of Rentals that Are Often Furnished
Short-Term Rentals
If you run a vacation rental on platforms like Airbnb or Booking.com, most tenants expect the house to come with basic furnishings at least. After all, if you’re only away from home for a couple of days to a few months, why bother buying an entire new set of fittings? If your target audiences are tourists or temporary visitors, having a ready-to-use space is part of the expectations when renting your place.
Student Accommodation
Another type of rental where tenants expect the basics is student accommodation. Some students moving from one city or state to the next prefer the hassle free ease of living in a home that has all their necessities. If a house has essentials like a bed, desk, and wardrobe, all they need is their clothes and books.
Executive Rentals
Attract corporate professionals to your apartment by setting up a well-equipped home away from home. For expatriates, diplomats, and executive employees who travel on business for months at a stretch, a furnished apartment makes the temporary relocation process easier, making it a requirement.
Luxury Rentals
Appeal to high-end and wealthier tenants by catering to their preference for a home away from home. If you own property in prime locations and plan to attract renters with a fatter wallet, you need to invest in high-end furnishing that appeals to their lifestyle and hassle-free living.
How Furnishing Impacts Rental Rates
Increased Rent Potential
Earn more money by providing tenants with more comfort and flexibility. Market rates for furnished units are higher than their unfurnished counterparts in the same location because tenants are willing to pay a premium for the convenience of moving in with only their clothes. Other conditions that impact a rent increase in 2025 to consider are economic conditions and inflation, but investors can still tack the ripple effect of this onto the renter.
Target Market Considerations
Keep your vacancies to a minimum by considering what your target market wants from their accommodation. If you’re looking for long-term tenants who are looking to stay for a year or possibly longer, furnishing may not be a high priority. On the other hand, if you’re looking to attract short-term renters like vacationers or business travelers, you’ll have to prioritize their convenience. Also, the more furnishing you add, the greater the convenience and the more you can charge. For example, a partially furnished apartment with a basic set of a bed, couch, and fridge is going to cost far less than one that has more extravagant appliances like a coffee maker, toaster, or PS5.
Impact of Location
Pay attention to your rental property’s location because it significantly affects how profitable the furnishing will be. If you live in an urban area or a hot spot for tourists, then renters looking for furnished apartments are going to be more, driving the demand up, and prices will follow. On the other hand, more suburban or residential areas with long-term tenants are less likely to experience a demand for furnished houses. Investors who have such apartments are more likely to experience vacancies or lease their property at prices that barely cover the maintenance of the furnishings.
Conclusion
To wrap up, furnishing your apartment increases the property’s value, allowing you to charge more and potentially increasing your profit margin. If you’re looking to attract target markets like corporate professionals, college students, and tourists, you’ll need to consider their needs and preferences for a ready-to-move-in apartment. That means if you own a property in an urban center or tourist destination, you may have to invest in setting up the house to attract more tenants and avoid extended vacancies. Thankfully, furnished apartments in these locations are in high demand, making your investment profitable in the long run.
