Author Topic: How much more for furnished rental?  (Read 2156 times)

Maya

  • Stubble
  • **
  • Posts: 247
  • Location: Canada
How much more for furnished rental?
« on: January 04, 2015, 12:07:42 PM »
We have a condo that we currently rent for 1100/month. If we changed it to a short term fully furnished rental how much more could we charge?

Currently don't include utilities with the rent, would need to in a furnished rental, and likely cable and Internet as well.

Not that it matters to the overall price, but heat and electricity would likely be about 50-100$/month and cable and Internet about $100.


totoro

  • Handlebar Stache
  • *****
  • Posts: 2102
Re: How much more for furnished rental?
« Reply #1 on: January 04, 2015, 01:43:52 PM »
Go to Airbnb and look for the prices in your area if you are doing short-term.  If you are talking monthly rentals go to CL or whatever site is popular to list in your area to compare what furnished places are going for.  It really varies from area to area depending on supply and demand.  In areas where a lot of people rent out when they travel in the winter the prices will be lower.

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28127
  • Age: -999
  • Location: Seattle, WA
Re: How much more for furnished rental?
« Reply #2 on: January 05, 2015, 09:41:39 AM »
There's no rule of thumb with a flat dollar amount or percentage, you will need to figure out what your market will bear.  In other words, look at your competitors.

It may be the case that you don't get any more, because there's not a demand.  It may be the case that you get a lot more, because your area is in demand for, say, short term furnished corporate rentals.

It very much depends, so go look at what's available in your area and see if you can figure out what the premium is. Then test some price points.

:)
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

malacca

  • Stubble
  • **
  • Posts: 229
  • Location: Malaysia!!!
Re: How much more for furnished rental?
« Reply #3 on: January 10, 2015, 10:26:33 AM »
In reality you can charge whatever the customer can afford.

Most people looking for fully furnished units, rent site unseen. It is all about how well you display your product and how you conduct yourself on the phone / email.

You are not selling a rental - you are selling confidence. Confidence that 1) You are the owner. 2) The unit will be as described. 3) They will have a good stay.

Your clients most likely will be home owners or professionals (maybe retirees if in vacation area). They have money and will be good tenants. They will expect a decent place - clean and free of defects.

This is not the "rental business" - it is the convenience and confidence business.

Returns are much better than regular rentals - and you get better tenants.

Villanelle

  • Magnum Stache
  • ******
  • Posts: 3132
Re: How much more for furnished rental?
« Reply #4 on: January 12, 2015, 08:03:28 AM »
I think it will depend a lot on the furnishings.  I'm currently looking at the possibility of living in a furnished rental for ~8 months.  I'd expect a deal given that I would be a guaranteed non-vacancy for such a long time, and during low season for the area.  But there is a very wide range of prices that seems to roughly correspond with the quality of the furnishings.  If the place looks like a magazine showroom, you are going to attract a higher paying crowd than if it looks like the inside of the Salvation Army furniture section. 

Reading the reviews, people tend to be impressed by small things.  Having bikes available for the renters, for example, seems to really excited people (in a beach, bike friend area).  A kitchen with decent items, rather than dull knives and rusted pots, seems to get commented on a lot in reviews as well.  These things bring people back and get good reviews for your place. Likewise, taking the time to put together a binder with suggested restaurants, addresses for shops, suggested things to do, etc., costs almost nothing but makes people feel welcomed and comfortable. 

I've researched both furnished and unfurnished in the very small area we are looking because we aren't sure what we will do. Very, very roughly, it seems to me that furnished go for about 15% more.  This is a very popular vacation spot.  VRBO/Homeaway (same company) and AirBnB should give you a good idea of what comparables in your area go for.  The area I'm looking doesn't seem to have much of a market for longer term listings, since it is a vacation area, so I've not found much, but CL would be a good bet if there's a decent market for such things in your area. 

Maya

  • Stubble
  • **
  • Posts: 247
  • Location: Canada
Re: How much more for furnished rental?
« Reply #5 on: January 12, 2015, 12:04:56 PM »
Thanks everyone. We've decided to put it up for sale for now. Hoping it sells quickly! Will miss the easy income though.