How to Rent a Furnished Apartment?

Are you confused about whether to rent a fully furnished house or an empty one? Lately renting a furnished apartment is on the incline, as it helps tenants to relocate to a new city without buying new furniture and other items for daily living.

It is also a good thing to rent a fully furnished home which will help you to generate extra income and cover expenses. So, in this article, we will cover the topic of “How to rent a furnished apartment”, by discussing its benefits and drawbacks and tips on successfully renting it which will help you to make an informed decision.

What is a Furnished Apartment?

A furnished apartment is a rental unit that has furniture and appliances pre-installed, where landlords offer essential items like beds, sofas, dining sets, a refrigerator, stove, cookware, and dishes.

A furnished apartment is a superb option for renters who seek to relocate their place to a new city or place to live temporarily. These are convenient for those who travel more often for work and do not want to buy their own furniture.

What to Include in a Fully Furnished Apartment?

You must be wondering what and how much needed to be included in the furnished apartment. There are three kinds of furnished apartments. They are: Fully furnished, Furnished, and Semi-furnished as they come in all apartment sizes.

1. Fully Furnished Apartments:

These apartments are move-in ready with all the furniture, appliances, and essential items like beds, couches, dining tables, and dressers. They also include amenities like a washer and dryer.

2. Furnished Apartments:

Generally, it depends on the landlord what items they want to include more or less but these apartments are usually equipped with a bed, chairs, tables, and sofa.

3. Semi-furnished Apartments:

In these apartments, there are very few items like basic items which are used in daily life such as a bed, couch, and some kitchen appliances, and also very few amenities.

How Much Can a Landlord Charge to Rent a Fully Furnished Apartment?

Generally, it depends on several factors such as the types and sizes of apartments, items included in the apartment, building amenities, and location. So, it can be challenging for landlords to set the right price for a fully furnished apartment. However, the key is the local market rental price that landlords have to keep in mind.

As per a report published by rent.com, in March 2024 an apartment’s average price was $1,987 as rent grew by 0.77 percent on an annual basis and 0.30 percent on month-to-month. Also, rents have climbed by 1.17 percent, or $23 since January.

Fully furnished apartments are in a different league compared to nun-furnished and semi-furnished. Thus, fully furnished apartments are more costly and often charge 10% to 20% more per month. If they are in key locations like universities, and business hubs, it can raise the price even more.

However, if you want to have detailed insights into the current local market rates for fully furnished apartments, you can contact the local real estate agent who specializes in rentals. You can also look into the rental ads in local newspapers or publications.

Tips on Successfully Renting Furnished Home

Renting a furnished home can be exciting as it requires careful planning and attention to detail. It is also beneficial for landlords as they have extra income flow. Here are some of the practical tips on successfully renting a furnished home.

Select Quality Furnishings With Unique Staging:

• For quality furnishings always invest in high-quality and durable furniture to attract potential renters without worrying about frequent replacements.
• Select versatile pieces with neutral colors and classic designs that can accommodate diverse lifestyles and fondness. It can attract a wide range of tenants.

Complete Inventory List:

• Make complete inventory lists that itemize all the furnishings, appliances, and amenities included in the rental property and provide it to tenants before they move in and sign as a piece of a lease agreement.
• Also include descriptions, quantities, and conditions of each item to minimize disputes over missing or damaged items at the end of the tenancy.

Set Clear Expectations on Lease Agreement:

• Set clear prospects on a lease agreement outlining the rights and responsibilities of both landlord and tenant regarding the furnished property.Set clear outline procedures for reporting damages and maintenance issues.
• Set clear guidelines on the lease agreement on making up for normal wear and tear and property damage.
• Also include clauses regarding the use, care, and replacement of furnishings, as well as the consequences for neglect or misuse.

Security Deposit:

The landlord can ask for a security deposit to the tenant equivalent to one or two months’ rent to cover future potential damages beyond normal wear and tear.
Discuss the conditions with tenants under which the security deposit will be withheld, such as excessive damage or missing items, and the process for returning the deposit at the end of the lease term.

Schedule a Maintenance and Inspection:

• Carry out regular maintenance to ensure that the furnishings and appliances are kept in good condition throughout the tenancy.
• Carry out periodic inspections of the property to check for any damages or maintenance issues that need attention. Address any concerns promptly to prevent further deterioration.

Tenant Screening:

• Conduct thorough tenant screening to select reliable and responsible tenants who are likely to take good care of the furnished property.
• Do a thorough background check to verify potential tenants’ rental history, employment status, income stability, and references to assess their suitability for the rental.

Insurance Coverage:

• If possible consider obtaining renters insurance to protect both the landlord’s and tenant’s interests in the event of damages or losses to the furnished property.
• Make sure that your own insurance policy is capable of covering any damages on the furnishings and appliances in the rental property that occur during their tenancy.

Responsive Communication:

• Have open and responsive communication with tenants throughout the tenancy to address any concerns or maintenance requests promptly.
• Offers multiple channels of communication to the tenant, such as phone, email, or an online portal, to report issues and seek assistance as needed.

Professional Cleaning Services:

• Do a thorough cleaning of the furnished property between tenants by arranging for professional cleaning services. This includes deep cleaning carpets, upholstery, and appliances to ensure a fresh and inviting space for new tenants.

Flexibility and Customization:

• Be flexible and open to accommodating tenants’ specific needs or preferences regarding the furnishings. Consider allowing tenants to bring in their own furniture or make minor modifications to the existing setup, if feasible.
• Maintain a balance between providing essential furnishings and allowing tenants to personalize the space to make it feel like home.

Market and Manage Property Using Online Software:

• The right tools can help you market and manage your property effectively. It will help to create eye-catching listings and post on multiple sites with ease.
• It helps you with automated rent collection, logs maintenance, and smooth landlord-tenant communications.

Pros and Cons For Renting Out a Furnished Apartment

There are both benefits and drawbacks to renting a fully furnished house. Comprehend it and make an informed decision whether to rent a fully furnished house or not.

Here’s the list of pros for renting a furnished home:

1. Vacancy Fills Faster

As fully furnished homes are increasing in demand specifically in key locations like corporate hubs, and universities. There are faster fill vacancies for furnished homes as they are move-in ready and hassle-free.

2. Potential High Rent

As we have already discussed before in “How Much Can a Landlord Charge to Rent a Fully Furnished Apartment”. So, let’s not dive further into it again. In short, you can charge high rent for fully furnished homes as per key locations and for providing all the furnishing and appliances.

3. High-Security Deposit

Generally, landlords can charge three times of monthly rent from tenants for a security deposit, which will help you make up for normal wear and tear and other damages. But ensure to differentiate between them.

4. Tax Benefits

Renting a fully furnished apartment has many benefits and one of them is a tax deduction. You can claim the money spent on furniture, appliances, and other rehabilitation made on apartments which will help to relieve the burden of forthright costs.

Here’s the list of cons for renting a furnished home:

1. Upfront Investment

To set up a fully furnished apartment, you need to invest in furniture and appliances beforehand. Good quality furniture and appliances come with a high cost which will be a burden to the landlord.

2. Frequent Maintenance and Replacement

As we know, a fully furnished apartment comes with more items, which require frequent repair and replacement of worn-out ones. Thus, it needs to spend more money on these.

3. Short-Term Lease

Short-term leases are one of the main drawbacks of a fully furnished apartment, as corporate employees and remote workers seek furnished homes for easy move-in without buying anything. Thus, the turnover rate for furnished houses is high.

Which Strategies Help Safeguard Your Investment When Renting a Furnished Property?

Renting a furnished property is a great way to increase your rental cash flow but involves several key steps. Hence, ensure your property remains in good condition and your financial interests are secured. Here are some ways you can protect your investment when renting a furnished home:

1. Preparation

Before renting out a fully furnished property, ensure it’s in good condition and meets all necessary legal requirements. Do proper repairs, clean thoroughly, and ensure all furnishings are in working order. Proper preparation sets the stage for a smooth rental experience for both you and your tenants.

2. Market Research

Understand the demands for furnished rentals locally by conducting thorough market research. This will help to set competitive rental rates which can attract potential tenants. Search for similar properties locally to compute pricing and offered amenities.

3. Inventory Checklist

Create a detailed inventory checklist of all the furnishings and appliances included in the rental property. Document the condition of each item before tenants move in to prevent disputes over damages later on. Include descriptions, quantities, and condition notes for each item, and consider taking photographs as visual evidence.

4. Tenant Orientation

Once tenants are selected, give a thorough orientation related to the property. Go through the inventory checklist and explain how to use appliances and furnishings properly. Highlights the importance of proper maintenance and care to ensure the property remains in good condition throughout the tenancy.

How Can You Rent a Furnished Apartment?

To rent a furnished apartment, you need to list it on online sites or different platforms. Here are some of them:

1. Digital Resources: You can advertise your furnished house online through various channels like online rental platforms, social media, and real estate websites. You can highlight the key features and amenities of the house.
2. List With a Realtor: Listing with a realtor is beneficial to the landlord as they run a credit check and background check on a tenant for potential tenancy during the application process. Thus, landlords can be worry-free.
3. Get in Touch With Corporate Relocations: Get in touch with corporate relocation companies locally as furnished apartments are popular options for temporary corporate housing.

How to Rent a Furnished Apartment FAQs