Whether you should rent your property furnished or unfurnished is your choice. Still, it is important to understand the implications of both sides. The Hawaii real estate market is a large and diverse one, and several people put their properties on sale. In addition, Hawaii is one of the most happening cities in the world, and the market thus booms all year round.
We are here to address the dilemma if you are wondering how you should rent your property and what you must include. We shall weigh both options unbiasedly to help you choose the best way.
Many people engage in Honolulu property search year looking for rented apartments and condos. People looking for long-term rent go for unfurnished flats, while people looking for short-term arrangements prefer furnished flats. Both come with their inherent pros and cons for the landlord. Read on to learn more about your choices.
What is Included in a Rental Furnished Property
* Couch, tables, lamp, television and window coverings.
* Towels, wastebasket, curtains
* Oven, utensils, dishes, pots, coffee maker.
* Bed, mats, dressers, hangers, wardrobes.
The items mentioned above are some of the items that are typically included in a furnished rental property. The list is not a strict guideline but is meant to give you an idea about the furnishings.
Furnished Rental Property Advantages
Higher Security Deposit
Since your property includes furnishing, you can demand higher security to ensure it covers damages and wear and tear of your appliances and furniture. Most tenants looking for furnished homes have a higher budget and are aware of the high-security deposit; thus, meeting them midway with a satisfactory amount won't be a problem.
Higher Rent
A furnished house will undoubtedly fetch you a higher rental income. People visiting Hawaii for a limited time, either for a holiday or work, generally look for furnished properties. Since they don't look for a permanent stay, they don't buy furniture or appliances, making furnished flats a great option.
More Tax Deductions
Furnished flats help you deduct more taxes, including repairing charges or replacements of items. The cost of living in Hawaii is not peanuts; thus, saving on some taxes can do you good.
Predictable Market
Regarding the buying vs. renting debate in Hawaii, the latter is perhaps more popular among students and young adults. Young families and young professionals prefer furnished flats. So if your property is nearby colleges and other urban areas, you have a better chance of getting tenants as your target market is predictable.
Furnished Rental Property Disadvantages
Higher Maintenance Costs
The furnishings you have in your house must be repaired and maintained from time to time, increasing your expenses. Tenants seldom use appliances and furniture with care, and this causes excessive wear and tear. While you may deduct the charges from the deposit, it is not always possible. Moreover, the deposit will not cover updating decorations or worn-out pieces. The responsibilities between the homeowner and the tenant are outlined quite clearly. Thus you cannot extract money from the tenant for every repair and replacement.
Taste May Not Match with the Tenant
Different people have different tastes, and a buyer may not like how you decorate your home. In the case of furnished flats, people concentrate on the furnishings and decor as much as the property and its advantages. Thus you may lose out on tenants simply for differing tastes.
Not Fit for Long-Term Tenants
Furnished homes do not generally attract long-term tenants. They would prefer their furnishing and decorating the house as per their choice. They may also carry their furnishings, and lack of space might compel them to back down. Unfurnished flats are a better option for long-term and steady tenants.
Storage Cost
If the tenant wishes to bring their bed or wardrobe, you must make arrangements to remove your furnishings. The excess item needs to have a storage place, and renting one can increase your expenditure unnecessarily.
It has been established that both furnished and unfurnished flats come with their respective pros and cons. Therefore, you must decide for yourself what will suit you the best. No matter your decision, a smart property manager will help you find tenants for your house.
