A few readers on this site have sent messages asking for more information and the “Business Model” of furnished rental homes. So I have now done some research to figure out what the heck a “business model” is!
I am going to give the six components of the furnished business model over the next few days for those interested. I am happy to answer questions. Critiques are also okay.
It’s all a learning experience as my business is evolving and not cast in stone. If something doesn’t make sense, tell me. Maybe it really doesn’t. I dreamed up this business myself and there are NO landlord books that cover it specifically. I am constantly modifying how we operate.
FURNISHED RENTAL HOMES BUSINESS MODEL
( Value proposition–A description of the customer problem, the product that addresses the problem, and the value of the product from the customer’s perspective).
- Our current newspaper ad running under HOUSES FOR RENT-FURNISHED (using the monthly rate discount) addresses the customer problem. The product is the fully-furnished home, with all bills paid, at a lower cost than most hotels. And all you need to bring is your toothbrush.
NEED TEMPORARY housing with
all bills paid? 40+ Furnished
Homes, all sizes. 30 day minimum
stay required. $1200-$2100/ month.
($30-$70/day). Pet Friendly! Call
anytime for info. or availability.
Phone number, phone number,
website address.
Just now I caught that the numbers don’t add up! No one has caught that or questioned it however. We have a small studio unit that we have dropped the price on to $900/month as it doesn’t have a washer/dryer or stovetop. It is our least sought-after unit, and barely pays for itself.
Tomorrow I will answer any questions and post some customer comments–the value of the product from the customer’s perspective.
I am doing this because I believe some of you will find that you ARE in a market that will support a furnished rental. It is a great way to start in real estate, especially if you live in a duplex or have a guest cottage. You will receive the absolute maximum rent possible from your furnished unit, two or three times more than unfurnished. You will minimize negative cash flow. You will have a high quality of tenant. You may even enjoy being a landlord!
Furnishedowner