A Strategic Guide for Property Owners
When preparing your property for the long-term rental market, the decision to leave it "fully furnished" is more than a matter of convenience—it is a major business decision. While it may seem like a way to add value, for most long-term investors, unfurnished properties offer higher stability and lower overhead.
The Hidden Costs of Furnished Rentals
While furnished homes can command a premium, they often come with "invisible" expenses that eat into your profit margins:
Limited Tenant Pool: 80% of long-term renters have their own furniture. Requiring them to use yours often leads to longer vacancy periods.
The Maintenance Trap: As a landlord, you are responsible for the "useful life" of every item. If a chair breaks or a rug stains, you are on the hook for immediate repair or replacement.
Higher Turnover: Furnished renters are often "in transition." This leads to shorter lease terms and higher costs for cleaning, marketing, and re-leasing.
Liability & Disputes: Inventorying hundreds of household items leads to complex move-out inspections and is the leading cause of security deposit friction.
The Benefits of Going Unfurnished
Transitioning to a standard lease often results in a more "passive" and profitable investment:
Higher Quality Tenants: Tenants with their own furniture are generally more "settled" and likely to sign multi-year leases.
Reduced Wear and Tear: Without the constant cycle of moving smaller furniture items in and out, your walls, floors, and doorframes stay in better condition.
Simplified Management: Your liability is limited to the structure and major appliances, significantly reducing "nuisance" maintenance calls.
Better Alternatives for Your Assets
If you currently have a furnished home, consider these high-return strategies instead:
Stage & Sell: Use your furniture for high-end marketing photos to attract a tenant, then clear the home for a clean move-in.
Strategic Liquidation: Sell the furniture and reinvest the cash into permanent property upgrades (like flooring or lighting) that increase the actual property value.
The "Key Pieces" Only Model: Leave only built-ins or heavy outdoor items that add value without creating a maintenance liability.
Let Us Handle the Details
As your property management partner, our goal is to minimize your stress and maximize your net income. We provide:
Comprehensive Market Analysis to price your home competitively.
Vigorously Vetted Tenants looking for long-term stability.
Expert Guidance on how to prep your home for the highest possible return.
Contact us today for a free rental price analysis!
PMI Milestone
240-835-0495
