Should I rent my investment property furnished?

When investors purchase a new rental property or move out of their current home, a common question we get at TrustArt Realty is: "Should I just rent the property fully furnished?" While it might seem convenient to leave your furniture behind or attempt to charge a premium, there are critical legal and financial factors you must consider before making that decision. Watch our breakdown below, or read on for the key risks.

1. Increased Legal Liability

Providing furniture dramatically increases your liability as a landlord. For example, if a tenant provides their own kitchen table and a child falls and gets hurt, you have nothing to do with it. But, if you provided a table that had a wobbly leg, you may now be held liable for their injuries because the furniture belonged to you.

2. Maintenance Nightmares

When you furnish a unit, you are responsible for maintaining those items. If a tenant calls you to complain that a chair is broken or a bed frame is squeaking, it is now your financial responsibility to repair or replace it ASAP. This adds unnecessary headaches and expenses to your property management.

3. Complicated Move-In & Move-Out Inspections

Leasing a furnished unit requires an exhaustive inventory report. You must document the condition of every single table, couch, and chair (and even count pots, pans, and forks if you provide kitchenware). When the tenant moves out, assessing "normal wear and tear" versus "chargeable damage" on a used couch becomes a massive dispute risk.

4. What About Airbnb or Short-Term Rentals?

The only time you must furnish a property is if you are running a short-term Airbnb-style rental. However, before you buy furniture, you must verify local regulations. Many Philadelphia municipalities and Condo/HOA associations strictly prohibit rentals under 90 to 180 days, and you may be required to pay additional hotel taxes.

The Verdict: Unless you are specifically building a short-term corporate rental or Airbnb (and are legally allowed to do so), most tenants prefer to bring their own furniture, and landlords are far better off renting the unit unfurnished to minimize liability and maintenance costs.