What you need to know about residential rental investment property furnishings
For first-time real estate investors purchasing residential properties, there is always a dilemma as to whether they should furnish their residential rental investment property and, if so, what kind of basic amenities to provide. Therefore, this article will cover the two basic types of rental arrangements that will arise if you want to rent out your residential investment property.
The first type of rental available is an unfurnished investment property. These renters are the type that will come with their existing furniture and want to move it all into their property. Therefore, the problem is what to do with the existing furniture. Sometimes this can result in the investment property owner having extra sets of furniture, as I have personally seen, because their tenants don’t like their choice of furniture. Keep in mind, though, that most landlords provide the basics like a washer, dryer, and television. If you are providing such furniture, remember to clearly list it by brand and type on the rental agreement you sign with your tenant.
The second type of property is fully furnished property. The thing to keep in mind here is that people will always differ from you in terms of furnishings and type of curtains used in the property. Therefore, one of the best ways to save money in case the current tenant does not like the furniture you provide is to get the furniture from IKEA, which is relatively cheap to get and also easy to move to your investment property. . Not only that, but remember that as long as you spend a certain sum at IKEA, you can have them do the interior design for your property, which is a real time saver, as when you are investing in your property you will be busy looking at the legal work, the mortgage, and other things associated with investment property.
There are also property management companies that have a set way of furnishing your apartments and might even provide you with the property for a fee. It is claimed that this could be better as it could allow them to market their property at a higher rent. The reason for this is that these property management companies group their rental properties in terms of furnishings and size to determine their rents, so you may want to take a look at their brochures.
In conclusion, at the end of the day, if your investment property is already well-furnished, you may want to wait until a tenant shows up who likes your decorating style so you can save yourself the hassle of moving your furniture. Otherwise, unless you love to furnish a property and are blessed with a good sense of fashion, it’s best to leave the furnishings to the professionals.
By Joel Teo 2006 All rights reserved