If you’re looking for creative ways to increase the ROI on your DFW rental property, consider furnishing the home. Investors are catching on to shifting trends in the Dallas/Fort Worth rental market, and furnished homes are leading to more income.
Demand for Furnished Rental Homes is Rising
Right now, fewer than three percent of homes on the rental market are furnished. That creates a high demand, and your home will rent especially well when it’s professionally designed. Tenants are willing to pay a premium for furnished homes.
We are seeing the market shift to a place where tenants are arriving for work and staying for less than a year. Many tenants are only in town for one to three months. They want a fully furnished home with some office space and the utilities on and ready to use. Your tenants will pay more for this, and as longer stays become part of the short-term rental market, filling this need is leading to high profits for owners.
What about Wear and Tear?
You’re actually going to find less wear and tear on a furnished home. That’s because you’re getting tenants who can afford higher rents. They’re less likely to cause property damage or deterioration. You also don’t have to worry about your tenants moving large pieces of furniture in and out. Your home stays in better shape.
You can also charge your cleaning fees up front. Tenants are willing to pay those fees, so you’ll know that your rental property is cleaner at the expense of your tenants.
Furnished Homes and Insurance Companies
With a furnished rental property, insurance companies will love placing clients with you. When they have a client who has to move out of their home because of a catastrophe or claim, they look for properties that are already furnished. You may have a tenant who will be in place up to 12 months, and their insurance company will be covering the rent. They’ll even be willing to pay above-market rents for a furnished home because they don’t also have to rent furniture for their policyholders.