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Should I Rent My Investment Property Furnished?

Real-estate investors are occasionally doubtful when it comes to renting their property furnished or not. Investors want to know whether they can make more money on it, or whether a reason not to rent a furnished property exists.

There are a couple of things to consider if looking into renting a furnished property:

1. Increased Liability:

When a tenant comes into a property, and they bring their own furnishings, if their little kids ran across the top of their own kitchen table, and slip and fall hitting their head, is that a liability on the landlord? No, of course not. But what if that kitchen table was the landlords’ one? They put it in there, and the leg was a little bit wobbly. Suddenly, now, the landlords could potentially have a liability claim because the table that the kids fell off of and got injured was their table, and they should have warned about that wobbly leg.

2. Maintaining the Property:

When the landlord gets a call from the tenant who says that the table leg is wobbling, and they want the landlord to go fix that table leg. The landlord doesn’t want to have to do that. There are many more potential maintenance actions that have to be covered, because the landlord put his personal property in there. Adding to that the headache on a turnover, having to go out and count forks and spoons. That could take some time as well.

3. Not Much of an Additional Income:

People don’t get as much money as they think they’re going to get by renting a property furnished. While doing a short-term furnished rental, like Airbnb would be a different scenario. Though some good money could be made doing that, there are things to be cautious of. Some communities will not allow short-term leases. Many, many multi-family communities, condos, town homes, and even a lot of single-family communities, now, are not allowing short-term leases, because the residents are saying:
     “We don’t want someone coming in here renting next-door neighbor’s house for three nights at a time, because we don’t like that. It decreases our property values.”

So, HOA associations are outlawing anything less than 30, 60, 90-day rentals and properties. Those bylaws should be checked well before attempting to rent the property short term.

Any landlord should check with HOA before going out and investing in a property, furnishing it, and then thinking of renting it on Airbnb. There are cases where that works, but research should be done to understand the situation.