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Should I Rent My House Furnished?
Should I Rent My House Furnished?

Real estate laws vary from one state to another, and landlords can choose or refuse to rent out a furnished house. You can rent out nothing but floorboards and bare walls without infringing any local, state, or federal laws. However, a rental property equipped with every possible appliance like a washing machine and dishwasher can reduce vacancies which are not good for business. Before making up your mind on the state you wish to rent out your property, it is advisable to consult a property management expert to ensure you are making the right decision.

Should I Rent My House Furnished?

Suppose you are wondering whether to rent out a furnished or unfurnished house. In that case, most property management companies recommend critically assessing the market and the needs of the tenants to ensure you get a significant return on investment (ROI). At 3 Options Realty, we believe in considering each scenario before making up your mind since both are pros and cons. Our team of experts has the vast industry experience and expertise to help you make better decisions for yourself and your tenants.

What is a Furnished Apartment?

A furnished apartment refers to a rental space equipped with all the necessary furniture to live comfortably. These include things like basic appliances, a couch, and beds, even though it doesn't have to be all simultaneously. This brings us to the three types of furnished apartments: furnished, semi-furnished, and fully furnished. Although these terms have loose definitions, and no defined law stipulates what should and shouldn't be included with each, it is vital for landlords to understand what a furnished house comprises.

Generally, a furnished apartment is equipped with the following: basic kitchen appliances, beds, chairs, a table, a dining room, coffee tables, and a couch. The appliances and furniture provided determine the level of furnishing, and we can help you provide the best experience without breaking the bank. Some property management companies and landlords take it a notch by providing extras like cookware, a toaster, a microwave, and lamp tables. Here are some of the benefits of renting out a furnished house.

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Charge Higher Rent

The primary goal of every business venture is turning a profit, and renting out a furnished house helps you ask for more rent. A higher rental price helps you cover the cost of the depreciation and furnishings and offset the loss of renting to short-term tenants. Aside from a higher rent, you can also ask for a higher security deposit which provides a cushion if you incur excessive damage to the furnishings.

Tax Savings

A furnished rental allows you to reduce your tax bill since furnishings are considered to be depreciable. Something that fits this category must be able to last for more than a year, must be valuable to the venture, and must be prone to loss of value over time. Appliances and furniture fit these criteria, making it a worthwhile investment.

However, furnishing your rental property heightens the risk of property damage and appeals mostly to short-term tenants, which is not good for business. Contact us today at 3 Options Realty for more information and quality property management services.

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