Why We Don’t Manage Furnished Rentals in Washington, DC
Nest DC
At Nest, our niche is more specific than just homes in Washington, DC. We excel at managing unfurnished rentals for homeowners that intend for them to be long-term investments. We support community building by offering well-maintained homes to folks who, ideally, will stay a while.
When it comes to deciding whether you should rent your home furnished or unfurnished, there are a few questions that may be top of mind. Isn’t it easier to leave all my furniture, rather than pack it up? Can’t I get more money renting my home furnished? Won’t people find a furnished property more attractive? In some cases, largely dependent on the quality of your home and your location, the answer to all of these is yes, and offering a furnished rental may be the most financially sound option for you. But it’s a trickier investment approach for several reasons:
Don’t Leave Furniture Behind if it’s Sentimental
While you can set high expectations for how tenants care for a space, counting on them to be precious about your furniture is unrealistic. Residents will report maintenance issues that affect them, but they are unlikely to note (or bring your attention to) a scratch they made in your leather sofa. If you are planning to return home and make use of your favorite pieces, make it easier on yourself by putting them in storage and outfitting your rental with chic but easily replaceable items.
A Furnished Rental Will Not Rent Faster
We get it- it can seem like presenting a turnkey option is a no-brainer. But think of who your ideal resident is. Are you looking for a short-term renter, high turnover, and flexibility in case you need to take the property off the market? Or are you looking for long-term tenants who will turn the space into their home and renew their lease year after year? The latter is how many of our tenants identify, and they stay with us for an average of 2.5 years.
If you are exclusively marketing to the short-term, corporate rental market, it may take longer to fill your space. Consider working with a company that specializes in that market, as they’ll have access to people and organizations that help shorten the amount of tiem your home is on the market. In Washington, DC, we recommend Stay Attache.
Renting a Furnished Home is Expensive…
…for both the resident and for you. Yes, people looking for an all-inclusive option are usually able to pay above market rent. However, management companies charge more to manage furnished listings, and you have more upkeep to budget for. Factor in more frequent cleanings and turnover between tenants, and it adds up. Make sure you run the numbers and have a clear picture of your income and expenses before committing to renting your home as a furnished rental.
A Note on Location
For long-term rentals, location impacts pricing. For furnished rentals, location impacts viability. While not always the case, most folks looking to test the waters in DC or who just need temporary housing want to be downtown, near government buildings, or perhaps near hospitals (like traveling nurses). Think: Capitol Hill, Dupont Circle, Mount Vernon, and Georgetown. If your home is in or adjacent to those areas, you have a better chance of securing a steady stream of renters. Properties farther out may be better suited for unfurnished, long-term rentals, where families who are looking to settle for a while in DC may move.
If you’re on the fence, speak with different kinds of property managers to get a better sense of what will work best for your unique property. At Nest DC, we will gladly put together a proposal for you and walk you through the steps for getting your home set up as an unfurnished rental. Feel free to schedule a call with us at nest-dc.com.
For more happy home content, we suggest checking out our blog on tax benefits of owning a rental property!
