To furnish or not to furnish…that is the question. And really, the answer to this question depends on the type of property you’re renting out. It depends on the ideal tenants you have identified to rent your home.
So, before you decide whether or not to offer furnished rentals in Killeen, we suggest that you consult your investment goals. If you’re interested in short-term properties or vacation rentals, you’ll have to furnish your property. When you’re targeting tenants who might be in place for a few months because of work or school, furnished rentals can make you competitive. They won’t have to buy or rent furniture or move it from wherever their permanent home is.
If you’re renting out a long-term property, though, and you’re open to all tenant demographics, not just temporary residents, you should not include furniture in your property. Those renters are looking for a home, and they’ll want to move in with their own things.
Here are some of our pros and cons to consider as you make furniture decisions.
The Benefits of Offering a Furnished Rental Property
A furnished rental includes furniture and other essential items, allowing tenants to move in with minimal effort. This often includes basics like beds, sofas, tables, chairs, and appliances. Depending on the level of furnishing, some rentals even offer additional touches such as décor, linens, and kitchenware.
If you’re looking for ways to increase the value of your property, offering a furnished rental might help. Furnished rentals can provide unique benefits to both property owners and tenants. When your property is furnished well, you can attract high-quality tenants and increase rental income.
Whether you’re targeting short-term tenants or long-term business renters, furnishing your property adds instant value by offering convenience and flexibility. Here’s why it works:
- Attract High-Quality Tenants
Furnished rentals appeal to a niche market of tenants, including business professionals, digital nomads, students, or individuals relocating for work. These tenants are often looking for a seamless rental experience without the hassle of moving furniture or investing in home essentials. By providing a ready-to-live-in space, you can attract responsible tenants who are willing to pay a premium for comfort and convenience.
- Higher Rental Income
One of the biggest advantages of offering furnished properties is the potential for increased rental income. A fully furnished property can bring in much higher rents compared to an unfurnished counterpart. Depending on your neighborhood and the quality of your furnishings, you can ask at least 20 percent more in rent than you would for a furnished property.
This is particularly true in high-demand areas like Killeen, where furnished rentals are becoming sought after by tenants who prefer flexibility in where and how they live.
- Shorter Vacancy Periods
Furnished rentals are attention-grabbing because they’re still somewhat rare. So, they tend to stand out in a crowded market. Their unique appeal can lead to shorter vacancy periods, ensuring a steady stream of rental income. Tenants seeking short-term leases or professionals on work assignments often prioritize furnished options, making it easier to fill your property quickly.
- Flexibility for Short-Term or Medium-Term Rentals
Furnished properties open the door to renting on a short-term or medium-term basis. This allows landlords to diversify their strategy and adapt based on market demand or seasonality.
- Higher Tenant Satisfaction
Providing a furnished rental shows that you’ve considered your tenant’s needs, which can increase satisfaction and loyalty. Happy tenants are more likely to treat the property respectfully and may even extend their lease if they’re happy with the space and their rental experience.
We don’t typically recommend it, but offering a furnished rental presents a unique opportunity for property owners. With the growing demand for convenience and flexibility in the rental market, a well-furnished property can give you a competitive edge.
The Drawbacks of Offering a Furnished Rental Property in Killeen
Furnished rental properties can seem like an attractive option for landlords, especially when you consider the benefits we’ve just discussed. A fully outfitted space can attract tenants who value convenience and speed up the leasing process.
However, while the idea of offering a “ready-to-live-in” rental may sound appealing at first, there are several significant drawbacks worth considering. Here’s why you should think twice—and why allowing tenants to bring their own belongings could be the better solution.
- Shorter Lease Terms
Furnished rentals often appeal to temporary tenants, such as students, contract workers, or those in transition. These renters typically stay for shorter periods, increasing tenant turnover and vacancy rates.
For landlords, fast turnover means extra work, from re-listing the property to screening new tenants. It may also lead to periods of zero income while waiting for the right tenant to lease the property again.
- High Maintenance Costs
When you furnish a rental, you’re not just maintaining the property—you’re also taking responsibility for wear and tear on furniture, appliances, and décor. Couches get stained, tables get scratched, and appliances can malfunction over time. You’ll have to be prepared to make repairs and replacements, not only to the property itself but also to the furnishings you’ve placed there. Tenants are never going to treat your furnishings as gently as you might want them to. And, the constant turnover of short-term guests will invite even more wear and tear on beds, linens, and tables.
Even high-quality furnishings will depreciate with frequent use, leaving you with constant costs for repairs or replacements. Plus, disputes over damage could raise tensions between you and tenants, especially if it’s challenging to prove when and how the damage occurred.
- Limited Tenant Options
While it might feel like you’re adding value by furnishing your rental, the reality is that many tenants prefer to live in a space they can make their own. For these tenants, a furnished rental may be less desirable. Tenant preferences vary widely, and some renters want the freedom to bring their own furniture or décor that better matches their style, comfort, or sentimental value. Offering an unfurnished property opens your pool to more long-term tenants who prioritize flexibility.
It’s true that furnished rental homes will quickly and easily attract a specific demographic of tenants. But, you still may be limiting your tenant pool if you decide to offer a furnished rental home.
- Liability for Damage
Furnishings introduce additional risk for disputes or potential damage claims. For example, a tenant may accidentally damage an expensive piece of furniture or appliance, or you may find yourself dealing with disputes over what constitutes normal wear and tear.
Ultimately, liability for these items creates additional legal and financial challenges for landlords. Opting for an unfurnished property allows you to minimize these risks and protect your profitability (and peace of mind).
- Higher Initial Investment
Furnishing a rental property isn’t cheap. Quality furniture, appliances, and décor all require a significant upfront investment, especially if you want to attract the most qualified tenants. While there is potential for a slightly higher rent, it’s rarely enough to offset the ongoing maintenance or replacement costs in the long run.
For landlords juggling multiple properties or managing their real estate portfolio, these additional expenses quickly add up.
Why Unfurnished Rentals Align with Tenant Preferences
An unfurnished rental doesn’t just lower costs for landlords—it also aligns with common tenant preferences. Here’s why tenants often lean toward unfurnished properties and why this could work in your favor:
- More Freedom. Tenants can bring their own furniture, creating a sense of comfort and ownership in the space. Most tenants understand that when they move into a rental home, they will not have the ability to paint walls, change out appliances, or choose different flooring. They do, however, have control over their furnishings, and most Killeen tenants will want to hold onto that.
- Longer Leases. Tenants who take the time to move their belongings into a rental are more likely to stay long term, reducing turnover. Moving can be stressful, especially with rooms full of furniture. When they settle in with their own (heavy) items, tenants will be less willing to move everything again, especially if they’re having a good rental experience.
- Easier Maintenance. Without landlord-provided furniture to maintain, tenants take full responsibility for their own belongings, simplifying upkeep.
- More Market Appeal. Appealing to a broader audience can increase demand for your property, helping you find reliable tenants faster.
Furnishing a property requires an upfront investment, increases management efforts and requirements, and limits your tenant pool to a specifically targeted market. That’s why we typically recommend keeping your Killeen rental property unfurnished unless you’re committed to short-term rentals.
Our conclusion? While furnished rentals may work in specific scenarios—such as short-term vacation rentals or corporate housing—they’re often not ideal for traditional housing markets like Killeen. For residential landlords and real estate investors, offering an unfurnished property lets you reduce risks, preserve your budget, and attract long-term tenants who appreciate the freedom to furnish their own living space.
Let’s talk about the most strategic way to rent out your property. Contact us at Shine Residential Management.
A property management company based in Harker Heights, Shine Residential Management cares for exceptional single-family homes throughout Central Texas, including in Killeen, Temple, Belton, Copperas Cove, Salado, and Georgetown.
