{"id":8225,"date":"2017-09-27T15:19:58","date_gmt":"2017-09-27T22:19:58","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=8225"},"modified":"2017-09-27T15:19:58","modified_gmt":"2017-09-27T22:19:58","slug":"furnished-apartment","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/furnished-apartment\/","title":{"rendered":"Is a Furnished Rental a Good Real Estate Investment?"},"content":{"rendered":"

\"furnished<\/p>\n

Landlords and real estate investors sometimes consider furnishing a rental property depending on the type of tenant they are hoping to attract and their market. Furnished apartments are typically ideal for short-term rental properties, corporate housing, and student housing. <\/span><\/p>\n

If you own rental property near a university, in a big city, or near businesses that often hire temporary or relocated employees, a furnished rental property might be a profitable option for your investment. <\/span><\/p>\n

According to the <\/span>American Apartment Owners Association<\/span><\/a>, “i<\/span>f you prefer a higher priced, short-term lease, than furnished may be the way to go. If you want long-term nesters then an empty, clean, well-maintained dwelling should suffice.\u201d<\/span><\/p>\n

There are a number of things to consider when deciding to furnish a rental; such as the costs of damages, tax benefits, and whether or not the addition of furnishings will indeed make a property more attractive to your target renter.<\/span><\/p>\n

What\u2019s Included in a Furnished Apartment <\/span><\/h3>\n

Appliances<\/span><\/h3>\n

Most rental properties in the United States come with a refrigerator and cooking range. Dishwashers, garbage disposals, in-unit washers and dryers, and microwaves are other appliances that are often found in rental properties as added amenities. <\/span><\/p>\n

Properties with a washer and dryer or dishwasher are not usually considered furnished apartments, however a landlord should include details in the lease agreement about tenant required maintenance<\/a> for appliances. <\/span><\/p>\n

According to a <\/span>report by the National Apartment Association<\/span><\/a>, <\/span>energy efficient appliances can increase rental income by 16% <\/span><\/a>and the addition of an in-unit washer\/dryer can increase rental value by 15%.<\/span><\/p><\/blockquote>\n

Furniture<\/span><\/h3>\n

Corporate housing, student housing, and short-term rentals are rental types which most often come furnished with furniture for the tenants. <\/span><\/p>\n

Furnished apartments can include basic furniture like couches, beds, and dining tables, to a complete set of furnishings, like dishes, towels, and bedding, on top of the couch, bed, and tables. \u00a0<\/span><\/p>\n

Here\u2019s a look at how c<\/span>omplete the furnishing are for Northeast Suites<\/span><\/a>\u2019s furnished apartments, which offers lease agreements for furnished apartments for 30-days to 12-months, including a cheese grater and cleaning supplies.<\/span><\/p>\n

The more furniture you provide to your renters, the more you can expect to collect in rental income. According to advice from property managers and investors on Trulia.com, a <\/span>furnished apartment can expect to collect between 20-0% over what the current market rent<\/span><\/a> is for an unfurnished unit.<\/span><\/p><\/blockquote>\n

A furnished property is not always ideal for all types of renters. \u00a0Renters who already own their own furniture will be less likely to rent a furnished property. Furnished apartment renters are also less likely to be long-term tenants if they decide they want to personalize their home or begin buying furniture. <\/span><\/p>\n

Lease Agreements for Furnished Rentals<\/span><\/h3>\n

If you do decide to include any furniture in your property as part of the rental, you should consider adding a Furnished Apartment Lease Addendum. Lease addendums are added to standard lease agreements to give more details about agreed upon expectations about the property. <\/span><\/p>\n

A furnished apartment lease addendum will document what furniture is included, the condition of the furniture and assigns responsibility to the tenant for damaged or missing items. <\/span><\/p>\n

RentPrep offers the following advice for some points to include in <\/span>a furnished apartment addendum<\/span><\/a>:<\/span><\/p>\n