This is a question I get a lot. First, you need to think about your rental clientele, the overall costs involved in actually furnishing the condo and in the end will furnishing the property allow you to break even every month or break the bank?
The most important thing to start your research is to pull a comparable list of rented condos to get an accurate idea of how much a furnished condo will rent for in your building as well as in the general market area. Keep in mind the more you keep the condo, “appealing to a large number of potential renters”, the less time it will spend on the market only waiting for “the one”.
From my experience I have found that randomly “furnished properties”, meaning properties where the owner was living in the condo and then moved out and decided to rent are typically more challenging to rent. Unfortunately, the furnishings often come off as “too personal” and often don’t relate to anyone but to the previous owner.
If a property is going to be furnished, I have found that the best scenario is when the properties are “STAGED LIKE A HOTEL WITH A FULL SERVICE KITCHEN”.
A couple of tips to help you with your “should I furnish” questions:
1. Does your building allow short-term rentals? If yes, then furnished is definitely more of an option. If no, I would think twice about furnishing the condo because furnished properties definitely get a lot more short-term inquiries. If your condo is furnished and the building doesn’t allow at least six-month rental, you are looking for a very specific renter. Which means It may take a little longer to rent.
2. Either furnish it ALL THE WAY…. or not at all. This includes bedding, kitchen wares and more.
3. What are the furnished properties renting for in your building? One of my most recent rental listing clients owns a loft-style condo on Meridian Avenue in South Beach. She wanted to furnish the loft because she heard that it would rent for more money. When going over the comparables of the most recently rented condos, we found out that furnished condos were renting close in price to the non-furnished condos. In the end it wasn’t financial feasible to rent the condo furnished.
3. What type of building do you live in? If you are considering furnishing your condo in an ultra luxury building, you are going to have to furnish the property to the same quality of the building and the lifestyle of your rental clientele. You cannot skimp because this clientele will expect the best.
4. Exactly what are you trying to accomplish by furnishing the condo? Maybe you want to enjoy the property part of the year and then rent it out the rest of the year? Great, furnish it all the way, keeping in mind the taste of the furnishings and make sure your building allows for short-term rentals.
To furnish or not is really a pretty simple question. First find out what furnished properties are renting for in the building, find out how much you would need to spend to furnish the property, total all of these factors and then consider if it makes sense financially? Lastly if you do decide to furnish the property, be sure to go all the way.
Have more questions about furnishing your rental condo on South Beach?
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