Renting Out A Furnished Property

by Administrator 18. August 2017 10:54

As a landlord, buying all the furniture for your rental property might seem like a major expenditure but you need to think about the pros and cons before deciding if you want to spend money on it. Although there is no specific rule that you need to provide a fully-furnished property to the tenant, it is up to you if you want this additional feature. Below is a list of certain advantages and disadvantages associated with renting out a furnished property. You can decide according to what suits you the best.

PROS:

  • Access to a larger market: When you have a furnished rental home, you can cater to a large chunk of the market that comprises of corporate companies. These companies pay more but you have to ensure that your property is in optimum condition to attract such customers.
  • Useful if you want to move back: In the future, if you intend to return to your rental property, you will not have to spend money on furniture if the property already has all the essential items. You will eventually save on storage and transport costs as well.
  • Tax benefit: Having a furnished rental property allows you to deduct a certain amount of the cost of goods from your tax liability. This means you can save money on tax and add to your financial savings.
  • Quick renting: Nowadays, more and more tenants are on the lookout for furnished properties. Therefore, providing this feature can get your home on rent at a quicker pace. This will reduce the vacancy period and your home will not keep on lying in the rental market for a longer period of time.

CONS:

  • Damage to the furniture: A furnished property is prone to wear and tear and potential damage caused by tenants during their stay. You will have to incur the cost of buying and maintaining sofas, beds and wardrobes etc.
  • Ensure legal compliance: All the furniture and furnishing items installed in your rental home must meet all the fire and safety regulations. You have to ensure this even before you give your property on rent. A small mistake on your part can prove to be costly as the tenant can sue you in case of any untoward accident.
  • Property can look untidy: Potential tenants might get put off by a rental property that has a lot of furniture. Also, they cannot customize the furniture according to their requirements which might be a negative point when it comes to finalizing the rental deal.

Rent out your furnished or unfurnished home in Harker Heights, TX with John Reider Properties. For more information, call our agents at (254) 699 – 8300.

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