Whether you should rent your Tampa property furnished or unfurnished depends on your goals and target market. While there are pros and cons to both decisions, unfurnished rentals and furnished rentals typically produce different outcomes in profitability and stability in the Tampa Bay area.
As a Tampa property manager, I know that everyone’s road to rental property ownership is unique — some may have inherited their rental property, some may have turned their primary residence into a rental, and others may have invested in the property with the intention of earning a rental income. With all possibilities considered, rental property owners may or may not already have their rental properties furnished.
As a Tampa rental property owner, navigating the decision to keep your furniture, remove it, or completely furnish your property can be challenging. Luckily, you don’t have to make an uninformed decision. Let’s dive into our property management guide to furnished vs unfurnished Tampa rental properties.
Identify Your Rental GoalsÂ
Identifying your rental goals is an essential step in deciding whether you should rent your property furnished or unfurnished. Your overall rental goals will significantly influence how to list your property and the process of furnishing vs not furnishing.Â
The most crucial aspects to consider are whether your property will act as a short-term rental or a long-term rental, and your desired income and profits. While both lease types can thrive in Tampa, it is essential to categorize your property as one or the other. This decision influences not only how your property will be furnished, but also how it is managed, and your income potential.
Short-Term Tampa Rentals
Short-term rental laws and regulations vary by state and county. In Florida, a short-term rental is defined as any individual lease agreement with a duration shorter than 30 consecutive days. Criteria for short-term rentals that typically vary by state and county include:
- Zoning restrictions
- Licensing and Permitting
- Taxation
- Occupancy Limits
- Noise and Nuisance Regulations
- Safety and Health CodesÂ
- Homeowners Association Rules
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While short-term rentals can be profitable, your income and occupancy can be inconsistent. Without a secure long-term lease agreement, short-term rental property owners take the risk of extended vacancies and months of missed rentals payments. For example, your Tampa short-term rental may bring in significant profits for events like Gasparilla, or the winter season. However, it could sit vacant from the months of May-September because short-term rentals are highly unpredictable.
Long-Term Tampa Rentals:
A typical long-term lease duration is 12 months long, but can vary depending on the property owner or tenant’s preferences. Long-term leases provide stability, require less attention, and are generally less stressful.Â
Unlike short-term rentals, long-term leases provide a stable and continuous income, reliable tenants, and (typically) preserved property conditions. During this lease period, your tenants are not changing frequently as they would with a short-term rental. Your long-term tenants are typically screened and vetted to ensure reliability and financial security. At The Listing Real Estate Management, our extensive tenant screening process includes:
- Credit history check
- Debt to income ratio
- Nationwide eviction search
- Background check
- Income and employment verification
- Previous rental verificationÂ
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In short, this process ensures that your tenants have the ability to pay rent on time and in full, and preserve the condition of your property. The stability of your tenants directly affect the stability of your rental income, profits, and overall property success.
Once you’ve identified your goals and desired lease term duration, then you can evaluate the furnishing needs of your target tenants.
Unfurnished Tampa Rental Properties
If your rental property will be a long-term rental with a lease agreement, you should rent your property unfurnished.Â
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Broader Tenant Pool
From our years of experience as rental property managers, I can tell you that furnished long-term rental properties typically drive tenants away and sit vacant for longer periods of time. Unfurnished rentals attract a larger tenant pool of renters seeking long-term leases.
Comfortability and Tenant Retention
While this may not be true for every single renter, a majority of prospective renters have their own furniture or prefer to furnish the home themselves. Allowing your tenants to bring in their own furniture elevates their comfortability and can oftentimes lead to lease renewals and higher tenant retention rates. Retaining reliable tenants is essential for rental property success as it generates a consistent income with no vacancy periods and removes inconveniences such as screening and placing a new tenant, performing frequent property turns, and months of lost rental income.Â
Less Upfront Expenses
Unfurnished rental properties pose less of an upfront expense for a property owner who does not have the property furnished already. Furniture is a significant expense, both to purchase, and to repair if it faces any tenant damage throughout the lease term. In addition, landlord insurance costs are significantly lower for unfurnished rentals as the property owner does not have to worry about personal property damage.
Easier Property TurnsÂ
Unfurnished rentals make for easier property turns. If the tenant upholds their end of the lease agreement, they will leave the house empty at the end of the lease term. An empty property makes for easy cleaning and no need to fix or replace broken or damaged furniture.
Furnished Tampa Rental Properties
If you’ve chosen to convert your property into a short-term rental, your renters will be in and out fairly quickly. While long-term rentals should remain unfurnished, short-term rentals in Tampa should come fully furnished.Â
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Short Lease Terms
Furnished rentals are the most ideal for short-term rentals of 30 days or less. Short-term rentals with transient guests require full furnishings as guests will not be bringing their own furniture. However, if you are seeking long-term leases, your tenants will most likely prefer to bring their own furniture.
High Turnover Rates and Wear and Tear
Short-term furnished rentals will have high turnover rates, tedious cleaning, and increased maintenance needs. Short-term rentals with frequent turnovers are subject to normal wear and tear; short-term tenants may be less careful about preserving the condition of the furniture.
Increased Expenses
Furnished rental properties lead to increased expenses for the property owner. Furnishing a home is a significant expense in itself, but there are many additional costs associated with a furnished rental property. These costs include:
- Regular maintenance and repairs
- Cleaning and turnover costs
- Insurance costs
- Replacement costsÂ
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These furniture-related expenses come in addition to the regular expenses of owning a Tampa rental property.
Lack of Stability
As furnished rentals cater to and attract short-term tenants, these rental properties tend to lack stability. While short-term rental properties command high prices during local events or high season, short-term rental prices fluctuate frequently. The lack of a long-term lease creates a lack of stability in a secure tenant and continuous stream of income.Â
Advice From a Tampa Property ManagerÂ
As a Tampa property manager, I know that navigating certain decisions for your rental property can be difficult. There is a lot of legwork that goes into the success and management style of your rental property.Â
It is essential that you set goals and identify the type of rental property you want. The goals you set in the beginning will determine how you should decide upon certain aspects like whether or not you should furnish your rental property.Â
If you are a rental property owner seeking a stable income and reliable tenants, I highly suggest leaving your property unfurnished. The potential benefits of unfurnished rentals, including tenant retention, secure rental income, and less expenses, outweigh the benefits of short-term furnished rentals.
If you are interested in full-service property management for your Tampa rental property, we are here to help! At The Listing Real Estate Management, we specialize in single-family and multifamily residential property management throughout Tampa Bay and the Orlando metropolitan area! To learn more about how we can help your rental property thrive, contact us today at The Listing Real Estate Management!Â
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