Portland isn’t just a city; it’s a lifestyle. With its unique fusion of culture, green spaces, and thriving industries, it continues to attract a growing number of renters.
And as a landlord or property investor, you’re likely considering your options in this active rental market.
You’ll need to consider whether to offer a furnished rental, an unfurnished apartment, or something in between.
Today, we’ll help you explore the pros and cons of furnished rental properties in Portland to determine the best investment.
What Makes a Furnished Rental?
A furnished apartment isn’t just about throwing a couch into the living room or opting for aesthetic decorations. Most houses have a fully furnished bedroom, a furnished living room, and even a furnished bathroom.
Picture essentials like a dining room table, a coffee table, basic kitchen appliances, and kitchen utensils. Many tenants expect more minor details, such as shower curtains, bath mats, and a trash can.
Then, semi-furnished apartments might lack items like kitchen tables or end tables, striking a balance between fully-furnished and unfurnished options.
A great option to consider is a pre furnished unit, which is ready to move in with minimal setup, attracting tenants needing immediate housing solutions.
Why Portland Tenants Love Furnished Rentals
It’s no secret that Portland is a hub for short-term movers, whether corporate professionals, students from nearby educational institutions, or relocators seeking affordable housing.
For these renters looking for convenience, a move-in-ready place is often the most appealing choice. Tenants seeking convenience and essentials can quickly settle into furnished rentals.
Landlords who furnish their properties to match tenant needs can boost appeal.
Fully furnished apartments allow these renters to skip the hassle of navigating local junk removal companies or buying furniture. Instead, they settle quickly into a prepared rental home and live comfortably.
Advantages of Offering Furnished Rentals
Convenience for Tenants
When people are renting a furnished apartment, they’re looking for ease. Instead of moving heavy furniture or worrying about purchasing furniture on arrival, everything is ready, from living room furnishings to the dining table.
Tenants prioritize convenience, and your furnished place delivers.
Higher Monthly Rent
You’ll love the financial perks. A fully furnished rental can justify higher monthly rent than an unfurnished home.
From a quality dining set to a stylish sofa from top furniture retailers, offering everything tenants need positions your property as a premium option within the rental market.
Broader Tenant Appeal
A fully furnished home attracts renters who might not otherwise consider your property. That includes professionals on short-term leases, students temporarily relocating, or those still finding their bearings in Portland.
The inclusivity of furnished apartments and other amenities opens your property to more renter profiles.
Tax Benefits
Did you know you can write off the costs of furnishing a unit? Everything from basic furniture to designed furniture in your living space could translate into fewer headaches come tax season.
Challenges of Furnished Rentals
Initial Upfront Cost
The largest hurdle is the upfront cost.
Outfitting a one-bedroom or two-bedroom apartment with all the furniture tenants expect can be expensive. Items like a high-quality dining room table or reliable basic kitchen appliances add up quickly.
And don’t forget smaller-ticket items like alarm clocks, kitchen utensils, and bath mats.
Maintenance and Damage
Expect some wear and tear, especially with high-end furnishings. Over time, even the sturdiest pieces, like end tables and dining chairs, face normal wear.
Replacing items will become routine, impacting your bottom line.
Limited Long-Term Tenant Interest
Despite their popularity, furnished homes aren’t ideal for everyone. Tenants who have already invested in their own furniture might lean towards an unfurnished place.
These renters typically want the freedom to customize their living space and prefer signing longer-term lease agreements.
Storage and Turnover
Handling furniture storage during tenant transitions can become a logistical nightmare. While some turn to a junk removal business for non-repairable items, property managers often coordinate moves and maintenance more regularly than they would for unfurnished options.
Is a Semi Furnished Apartment the Best of Both Worlds?
A semi-furnished apartment could strike the perfect balance, providing basic furniture while leaving room for personalization. Renters bring select items, like their favorite couch, while you supply essentials like a kitchen table and living room furnishings.
It reduces your upfront costs while still appealing to convenience-focused renters.
Furnished Vs. Unfurnished Apartments
Financial Perspective
A fully furnished rental demands a significant investment but allows you to charge higher monthly rent.
Meanwhile, an unfurnished apartment reduces initial expenses but generally yields lower rent.
Personalization Needs
An unfurnished apartment allows long-term tenants to customize it with their own selections. This option appeals most to tenants who want to personalize their space.
On the other hand, most furnished apartments work for those seeking practicality.
Turnover Rates
Short-term renters prefer short-term rentals with furnished apartments so that turnover can be higher.
However, with more frequent leasing comes the potential for increased profitability.
Maximize Success With the Right Furnishings
Essentials for Tenant Satisfaction
Landlords aiming to help outfit homes should focus on including tenant-friendly essentials.
Items such as a stylish coffee table, dining table, alarm clocks, and sturdy kitchen tables should be practical and appealing.
Durable, Stylish Choices
Helping landlords outfit their units with durable furnishings that stand the test of time ensures excellent returns. Designed furniture balances aesthetics and function, while replacements are easier when partnering with great couch retailers.
Navigating Portland’s Rental Agreements
Property owners should draft clear rental agreements tailored for furnished units. These contracts should specify coverage for everyday wear and depreciation of provided furniture, ensuring clear boundaries on responsibilities.
Don’t forget to consider the security deposit, which can help offset any unexpected repair costs for your furnished space.
Furnished or Bare? Unlocking Rental Market Success in Portland
Whether to offer a furnished or unfurnished apartment, a semi-furnished apartment, or an unfurnished home depends on your goals.
Are you looking to address the demand for short-term leases and maximize rents, or do you value long-term stability with less hassle? Either way, Portland’s dynamic rental market offers abundant growth opportunities.
Explore your options thoughtfully, consider your budget for purchasing furniture, and consult PropM Inc.
Our illustrious services allow your property to cater to a wide range of renters while maximizing your investment’s success.
Other Resources:
Top Features to Look for in Portland’s Single-Family Property Management Services
The Pros and Cons of Multifamily Investments: Real Estate Made Simple and Rewarding
