Furnished units.. pros and cons???

Question

I decided to advertise a Furnished apartment in our 60 unit complex.. We are located next to a Major University and have alot of students who come here from other countries with absolutley nothing.. and they end up going to Grad school, and getting jobs in DC once they graduate.. they are very minimal they whole time they are in school.. The furnished units would come with the following

a sectional couch, beds, pictures on the wall, shower curtain, rugs, dishes , pots and pans, dining room set.. etc..

I advertised a 2 bedroom apartment that I can usually get $1,200 empty  for and was asking $1,635.00.. well I signed the lease last week.. and have procured all of the things I will need from a consignment shop.. in total I spent almost $1,600 ..so i will pay myself back in 4 months.. after that it is all profit.. so of course my wheels started turning and I cant stop thinking if I can do this with at least half of my units.. 30 x $400 a month = $12,000 a month profit from renting people my furniture.. err. thats $144,000 a year... just for the furniture.. minus my investment of $48,000 furnishing the apts..

I am looking for advice from anyone who has don this in the past or still does it?? Am I looking at any liabililty if someone is say " horsing around on the furniture" and it collapses on them?? is there something I can get them to sign waiving me of any said liability?? I know we rent furnished houses at the beach every year and I have never signed anything.. however I am sure it is in the contract

My thinking is people rent their own personal houses right now on air bnb.. and vacation rentals.. in my mind I am sure there is something I wont be happy with but for that kind of extra monthy income I am willing to give it a shot.. and looking for input.. ya or nay?? would you do it??

and yes I am considering that these items will need to be replaced approx. every  4-5 years..

Account Closed · Answer

I think it's brilliant!  I rented studios to a lot of students and had the same experience.

The only downside I've heard of from landlords and the owner I worked for (who used to furnish apartments but stopped doing it) is that some tenants will want you to remove some furniture because they want to buy a few things of their own and get rid of some of your things.  Then you need to deal with storing some furniture somewhere.

I wouldn't worry about liability.  I was thinking more along the lines of putting an inventory in the lease and what they will be charged if any of them are missing or broken when they move out.

Colleen F. · Answer

We do furnished which is usual here so not really an increase for having it. Winter-students, summer beach.   I haven't seen any liability issues but I have got broken couches and a shatter sliding glass door at the end of the year from students.   About liability I will remove non-sturdy items and tippy chairs but best advice is to be a minimalist this also controls costs. Lose cute little tables and do very little pictures they will decorate to taste if they are there for months.  Electronics-TV-provide common area only.  Kitchen- corelle, service for 8 only ,  extras will disappear, and use plastics- no one is not going to rent long term based on what is in the kitchen cabinets (students break glasses!). Furniture is always decent and durable. If you provide beds provide matress covers.  Check for bugs at turnover. This is long term student furnished-not summer weekly-that is a little more stuff).  I do provide blenders, coffee pots but no frill versions. They don't get a lawnmower but we mow and I do leave some snow shovels/salt as we don't plow.  I am liking your price difference for furnished , is it completely related to the furnished do you think or are there any other factors?

Account Closed · Answer

Absolutely!  For what it's worth, I'm always happy to share my opinion lol.

Account Closed · Answer

My suggestion is to look carefully at anything that could cause harm in a furnished apartment.  For example, I've been thinking of renting one of my rentals as furnished, short term.  I'm looking at Ikea furniture, some I own and some I would need to buy.  But I'm very careful to check the recalls on Ikea's dressers -- there have been incidents where children have been injured or died when a dresser they were climbing fell on them.

Other reasons that I have not rented to prospective tenants with children is due to the hazards of a fireplace (woodburning -- obvious hazards;  gas fireplace -- can be burned if touching the hot glass; electric fireplace -- with the one in my personal residence, you need to be very careful when removing the glass, as it shatters very easily.)

Rochelle Wilkinson · Answer

Sue K., I would send the message tomorrow as it is lengthy and almost midnight here..if you approve

Rochelle Wilkinson · Answer

Sue K. I would like to send you a private message if you dont mind.. I read your profile.. and I think I could use your advice on  a couple things if you dont mind??

Michael Boyer · Answer

I have done a few "partially furnished" units before. This way you don't turn off folks with some furniture and appeal to those without.

Actually, I think it is all about the market and customer and yours (students) may fit the furnished niche.

You know the pros (more rent, etc).

My cons were: more work at turn over, as moving all the furniture to paint or clean was half the battle, then also cleaning, inventorying or repairing /replacing furniture is a hassle. Moving it is a chore. Buying it can take time.

That said, it sounds like the rent bump you get may more than cover the added costs. Best of luck.

Rochelle Wilkinson · Answer

@Chris Seveney.. we are a hub for those who work in DC, and near a major university.. so I think that is our advantage too

Chris Seveney · Answer

@Rochelle Wilkinson

I have one unit furnished (as its in a vacation location so I could rent it short term or long term)

I do not provide anything people can hurt themselves with - blenders, food processors etc. For exterior do not provide lawn mower / snow blower etc. That would be the only reason (liability issues). Other than that other issues could be if someone destroys it the cost to replace will not be covered by the deposit in most instances. I typically do not do it but in this instance I did because of its location. Also in Washington, D.C. Metro area I do not believe you will get the bump in rent like you got just north of us for furnished vs unfurnished.

Rochelle Wilkinson · Answer

@Chris Seveney is there any good reason NOT to do furnished units? liability? people destroying your stuff?? Im playing devils advocate here   how many units do you have furnished?

Furnished units.. pros and cons???

Most Popular Reply