The Pros & Cons of Furnished vs Unfurnished Rentals
John Doss • June 16, 2025
What is a Furnished vs Unfurnished Rental?
A furnished rental comes equipped with essential furniture and appliances—think beds, sofas, dining tables, and often kitchenware—so tenants can move in with just their personal belongings. An unfurnished rental typically includes only the basic fixtures and appliances (like a stove and refrigerator), leaving tenants to bring or purchase their own furniture.
Pros of Furnished Rentals
- Higher Rental Income
Furnished properties generally command higher monthly rents—often 15-30% more than comparable unfurnished units—thanks to the added value and convenience for tenants. This can be especially lucrative in markets with high demand for short-term or corporate housing. - Attracts Working Professional Tenants
Furnished rentals are particularly appealing to working professionals, such as relocating employees, traveling nurses, consultants, and those on temporary assignments. These tenants often seek move-in ready accommodations and are willing to pay a premium for convenience and flexibility. - Short Vacancy Periods
Because furnished rentals are move-in ready, they often lease more quickly, especially in urban areas or near universities and hospitals. - Less Property Damage During Move-In
With furniture already in place, there’s less risk of tenants damaging walls, floors, or doors while moving heavy items in and out.
Cons of Furnished Rentals
- Higher Upfront and Ongoing Costs
Furnishing a property requires a significant initial investment, and you’ll need to repair or replace items as they wear out. Quality furnishings are essential to justify higher rents and attract responsible tenants. - Higher Turnover and Shorter Lease Terms
Furnished rentals tend to attract short-term tenants, which can lead to more frequent turnovers, increased management workload/costs, and potentially higher vacancy rates between leases. - Greater Risk of Furniture Damage
Tenants may be less careful with furniture that isn’t theirs, increasing the risk of wear and tear or outright damage. This may require higher security deposits and more frequent inspections. - Limited Tenant Personalization
Some tenants may feel less “at home” in a furnished space and may be put off by the inability to personalize the décor or bring their own belongings.
Pros of Unfurnished Rentals
- Lower Upfront and Ongoing Costs
You won’t need to invest in or maintain furniture, which means lower initial expenses and fewer ongoing costs for repairs or replacements. - Attracts Long-Term Tenants
Unfurnished properties typically appeal to tenants looking for stability, such as families or professionals planning to stay for a year or more. This often results in longer lease terms and less frequent turnover. - Less Management Required
Without furniture to worry about, you’ll spend less time on inspections, repairs, and disputes over damage. - Lower Insurance Premiums
Insurance for unfurnished units is generally less expensive since you’re not covering the value of furniture and additional contents. - Greater Tenant Personalization
Tenants can furnish and decorate the space to their taste, making them feel more at home and potentially encouraging them to stay longer.
Cons of Unfurnished Rentals
- Lower Rent Potential
Unfurnished units typically command lower rents than furnished ones, which could mean less income, especially in markets with high demand for short-term rentals. - Smaller Tenant Pool for Short-Term Leases
If your property is in an area with lots of students, corporate travelers, or short-term residents, you might miss out on a significant portion of the rental market by not offering a furnished option. - Longer Vacancy Periods (in Some Markets)
Unfurnished rentals may take longer to lease in areas where tenants expect or need furnished options, especially in high-turnover or urban markets. - Potential for More Move-In/Out Damage
Tenants moving their own furniture in and out can inadvertently damage walls, floors, and doors, leading to more maintenance between tenancies.
Which Option Is Right For You?
Furnished rentals are best suited for landlords targeting short-term tenants, corporate housing, or high-turnover markets. They can generate higher income and fill vacancies faster, but require more management, upfront investment, and ongoing maintenance.
Unfurnished rentals are ideal for landlords seeking long-term, stable tenants and lower management demands. They offer more predictable income, less wear and tear, and appeal to families and professionals looking to settle in for a while.
Professional Property Management: The Best of Both Worlds
Deciding between furnished and unfurnished rentals is a strategic choice that should be informed by your local market, your investment goals, and your willingness to take on management responsibilities. A professional property management company can help you analyze market trends, set competitive rental rates, and handle everything from marketing and tenant screening to maintenance and compliance—whether you choose to rent furnished or unfurnished.
Both furnished and unfurnished rentals have their place in a landlord’s portfolio. Weigh the pros and cons, consider your market and target tenant, and don’t hesitate to seek expert advice. The right choice can maximize your return, minimize your stress, and help you build a successful rental business.
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