What to Consider: Furnished Housing for Short-Term Rentals
Posted on September 24th, 2024
When exploring furnished housing for short-term rentals, there are several key factors to consider to ensure a comfortable and seamless experience. From choosing the right location and amenities to understanding rental agreements and costs, each detail plays a crucial role in making the rental suitable for both tenants and property owners. This blog covers key aspects of selecting and managing furnished short-term rentals to help you make informed decisions.
Benefits of Offering Furnished Housing
Furnished housing provides a variety of benefits, particularly when targeting remote workers and traveling nurses. These groups, looking for short-term accommodations, value the convenience of moving into a fully-equipped space. You can cater to this demand by providing essential furnishings, electronics, and utilities, which makes your property far more appealing.
As a housing provider, offering furnished accommodations can be a great way to attract potential tenants and stand out from the competition. Not only does it save tenants the hassle of purchasing and moving furniture, but it also offers a variety of other benefits. Below are some of the top reasons why offering furnished housing can be advantageous for your business:
- Convenience: With furnished housing, tenants can move in immediately without having to worry about purchasing or transporting furniture. This can be especially appealing for those looking for short-term rentals or those who are new to the area.
- Attractiveness to international tenants: Furnished housing can be a major draw for international tenants who may not have the means to bring furniture with them. This can open up a whole new market for your business.
- Higher rental rates: Furnished housing typically commands higher rental rates, as tenants are willing to pay for the added convenience and savings of not having to purchase furniture.
- Less turnover: With furnished housing, tenants are less likely to move out due to the hassle of moving furniture. This can save you time and money on finding new tenants and preparing the unit for rent again.
- Competitive advantage: In a competitive rental market, offering furnished housing can give you an edge over other landlords and attract more tenants.
Offering furnished housing can be a beneficial option for both landlords and tenants. It provides convenience, attracts a wider range of tenants, and can result in higher rental rates and lower turnover. Consider incorporating furnished options into your rental properties to reap these benefits and stay ahead in the housing market.
Comparing Furnished vs. Unfurnished Rentals
When comparing furnished vs unfurnished rentals, it's essential to consider the types of renters each option attracts. Furnished rentals primarily appeal to short-term renters who value convenience, such as students, business travelers, and international visitors. This demographic is less concerned with personalizing their living space and more focused on functionality and comfort. On the other hand, unfurnished rentals suit long-term residents who prefer to bring their own furniture and belongings, creating a personalized environment. Families, local professionals, and retirees often fall into this category, seeking stability and the opportunity to make the space their home for an extended period.
Pros of furnished rentals include the potential for higher rental rates and lower vacancy periods due to the appeal to short-term tenants. However, the maintenance costs can be significantly higher, as furnishings will wear out and require replacement more frequently. Additionally, the initial investment in quality furniture, electronics, and housewares can be substantial. While you might enjoy a higher monthly income, the turnover rate is generally higher, leading to increased management efforts for tenant screening and property upkeep. Unfurnished rentals, conversely, often lead to longer lease terms, providing greater stability and consistent revenue without the need to frequently replace damaged or outdated items. Yet, these units might sit vacant longer if the local demand for long-term leases drops.
Target Audience and Demand Insights
Insights into market demand and the target audience are crucial to optimizing furnished short-term rentals. Remote workers form a significant segment of the rental market. The pandemic accelerated the shift to telecommuting, with many companies adopting flexible work arrangements as a permanent fixture. This group prioritizes high-speed internet, ergonomic workspaces, and proximity to local amenities such as cafes and coworking spaces. Properties in vibrant, urban locales or close to business districts are particularly attractive. Travelling nurses present another key demographic, often on assignments lasting around 13 weeks. They seek secure and comfortable living spaces, preferably within close proximity to medical facilities. Given their demanding schedules, these healthcare professionals place a high value on properties that offer quiet environments, ample parking, and robust security features.
Statistics show a burgeoning demand for short-term rentals in key cities. For instance, a study by Redfin revealed that in 2022, searches for keywords like “short-term rental NYC” increased by 30%. This indicates a growing trend where people opt for more transient living arrangements even in high-cost metropolitan areas. In cities with a prominent tech industry presence, such as Charlotte, attracting remote workers becomes feasible due to lower living costs compared to cities like NYC. According to Airbnb data, there was a 15% increase in bookings for properties with amenities tailored for working from home, such as dedicated offices and high-speed internet. Hence, understanding specific amenities that appeal to these target groups can significantly enhance your property’s desirability.
Related: The Importance of Good House Management
Conclusion
When it comes to selecting and managing furnished housing for short-term rentals, there are a few important factors to keep in mind. First and foremost, it is crucial to carefully consider the location, amenities, and overall condition of the property before making a decision. Additionally, it is important to establish clear communication and expectations with both the rental company and potential guests. Finally, it is essential to regularly assess and maintain the property to ensure a positive experience for all parties involved. By keeping these considerations in mind, you can successfully navigate the world of furnished housing for short-term rentals.
At Legacy Rose Company, our Furnished Housing Management service is designed to transform your short-term rental properties, such as Airbnb listings, into top-performing assets. We handle everything from guest communication and cleaning services to dynamic pricing strategies and marketing, ensuring your property attracts the highest-quality guests. For more information, contact us at [email protected]. Let us take the stress out of property management while maximizing your rental income.
We’re Here to Assist with All Your Property Management Needs
Whether you have a question about our services, need assistance with your property, or are ready to explore how we can help manage your real estate investments, we’re here to help.