There has been some interest. Has anyone yet tried to furnish their rentals? Here are a few tips for those who want to know…
What is a furnished rental? It is a unit of any size–we have studios to 3-bedrooms–that is completely furnished with table, chairs, TV’s, dishes, ironing board, everything. We tell prospective tenants, “Just bring your toothbrush.”
The tenant can walk into his rental, throw the key on the table, get his beer from the frig, plop into the recliner, and click on the remote. It is home. Instantly home. We try to test-drive the units for comfort and function. The tenants love it; we have many repeaters and loyalty too, i.e, “We will only stay with you.” We must be doing something right and it is profitable,
Why bother with furnished rentals? Really, it’s the money. That first studio unit, almost 5 years ago, would have rented for $300/month. I was able to get $900 after it was furnished. Of course expenses are much higher as utilities are all included, even high-speed internet. Now we also do long-distance telephone and put in DVR’s.
I work on a bottom line of at least $300/month profit per unit after everything is paid. Some units are way more cash-producing as they have low mortgage costs. Right now we typically rent units from $1050-$2100 per month. Our biggest money-makers are the 1-bedroom units. They are our bread-and-butter at $1800/month. The demand is greatest for 1-bedrooms, as they can house a single or a couple. There HAS to be a lot of profit because it is a lot of work.
How do you determine rents on furnished? You research all the hotels in your area. You want to be priced below the best hotels, and higher than the worst hotels. Larger houses also get more rent of course. Demand will set your rates once you get known.