Renting out a house can be easier if it’s furnished, especially in areas with high demand for short-term or corporate rentals. A furnished home attracts renters looking for convenience, such as professionals, students, or temporary residents.
However, unfurnished rentals tend to attract long-term renters who prefer bringing their furniture, leading to more stability and fewer turnover costs. The best choice depends on your goals as a homeowner.
Keep reading to discover the benefits of both options. We’ll break down the factors that impact rental success in Michigan and assist you in finding the best fit for your property.
Why Furnished Rentals Might Easier to Rent
A furnished rental is a property with essential furniture and appliances for residents to use during their stay. It includes items, like a bed, couch, table, chairs, and kitchen appliances, making it move-in ready. Here are some of the beneficial aspects of furnished rentals considering ease of rent:
Convenience
Furnished rentals are convenient because they offer an easy move-in solution. Renters don’t need to worry about buying or moving furniture, making the rental process smoother. It is especially appealing to people who are relocating or on temporary assignments. This provides a hassle-free living arrangement, saving time and energy for both residents and owners.
Attracts Specific Demographics
Furnished homes often attract specific groups, like professionals, students, or people relocating for work. These renters are usually looking for short living arrangements and prefer not to deal with the hassle of furniture shopping. As a result, furnished rentals are an ideal option for owners wanting to cater to these transient populations, ensuring steady demand.
Can Command a Higher Rent
Furnished rentals can often command higher rent prices than unfurnished properties. Residents are willing to pay a premium for the convenience of not needing to buy or move furniture. This is especially true in areas with a high demand for temporary or corporate housing. The added value of fully furnished spaces can lead to a better return for owners.
Easier to Show and Market
Furnished rental property marketing can be easier because the property is already set up and visually appealing. Potential renters can imagine themselves living there, which can speed up the renting process. Quality photos of a furnished property can make a great first impression, and improve your chances of finding renters quickly.
Quicker Rental Replacement
When an occupant leaves a furnished rental, it can be easier to fill the vacancy quickly. The property is already set up for new renters to move in. Short-term renters often like furnished homes. They may decide and sign the lease fast. This reduces the time your property stays empty and helps keep your rental income steady.
Beneficial Aspects of Unfurnished Rentals
An unfurnished rental is a property that does not come with any furniture or appliances. This type of property allows renters to bring furniture and personal belongings. Unfurnished homes are great for long-term renters. They want to settle in and personalize the space. These homes often have more flexible lease options.
Attracts Long-term Renters
Unfurnished rentals are typically more attractive to protracted residents who want the freedom to furnish their living space according to their preferences. These renters tend to stay for extended periods, providing owners with a more stable and predictable income stream. Long-term occupancy also reduces the costs and effort of marketing property and replacing residents frequently.
Lower Initial Investment for Owners
Offering an unfurnished rental property means that owners do not need to spend money on purchasing furniture or appliances. It significantly lowers the upfront investment to make the property ready to rest. Additionally, owners do not have to bear the costs of maintaining or replacing furniture.
Reduced Maintenance and Wear and Tear
With unfurnished rentals, the owner is not responsible for maintaining or replacing furniture, which can be costly. Residents are responsible for their furnishings, so the property tends to have less wear and tear. It reduces maintenance work and helps keep the property in good condition, leading to fewer repairs and lower overall upkeep costs.
More Flexibility for Renters
Unfurnished homes provide renters with more flexibility. They can bring their furniture and create a living space that fits their needs. This sense of freedom can lead to happier residents who feel more comfortable in their homes. The ability to personalize the space often leads to long stays and a more stable occupancy rate.
Factors to Consider for Owners to Choose the Right Rental Option
When deciding between a furnished or unfurnished rental, property owners need to evaluate several factors that can influence their decision. Understanding these aspects will help maximize profitability and meet residents’ needs. AmeriHome suggests some of these factors:
- Resident Demographics: Consider the type of residents you aim to attract. Furnished rentals suit short residents, while unfurnished properties are ideal for protracted renters who prefer settling in and personalizing their space.
- Rental Demand: The level of demand in your area plays a crucial role. Furnished homes are popular for temporary housing. Unfurnished homes attract renters looking for stability and long stays.
- Seasonal Trends: Seasonal trends can affect rental choices. Furnished rentals do well in peak seasons or tourist spots. Unfurnished homes have steady demand all year, especially in stable neighborhoods.
- Legal and Tax Considerations: Certain legal and tax implications may arise depending on the type of rental. Furnished rentals might require more detailed contracts or added insurance, while tax deductions for furnishings could affect income reports.
- Investment Goals: Owners’ investment goals should guide their choice. Furnished rentals are ideal for short-term renters who want higher rent and more flexibility. If long-term, predictable income with lower turnover is the goal, unfurnished rentals work better.
Conclusion
Choosing between furnished and unfurnished rental properties requires evaluating your goals and the needs of your target market. Furnished homes can provide higher rent but with higher upfront costs and more frequent maintenance. Unfurnished properties offer stability and long-term residents but tend to attract lower rents.
If you’re unsure which rental option is right for your property, our expert property management service can help. We offer professional services to help you optimize your rental property, from setting the right rental price to ensuring smooth operations. Trust us to handle the details so you can enjoy a stress-free rental experience.
Frequently Asked Questions
Which option attracts more residents, furnished or unfurnished rentals?
Furnished rentals attract short-term renters like students, professionals, and people relocating. Unfurnished rentals suit long-term renters who want to personalize their space.
Which type of rental is more common in Michigan, furnished or unfurnished?
In Michigan, unfurnished rentals are popular because they attract long-term residents looking for stability. However, furnished rentals are growing in demand for short-term leases in certain areas.
Are there legal differences between renting a furnished or unfurnished home?
There are no big legal differences. However, furnished rentals need detailed agreements, especially for furniture and appliances. The lease should clearly define responsibilities.
