Scott Safadi addresses furnishing apartments

by Scott on September 9, 2014

Scott Safadi believes that in special circumstances, it could be worth the landlord’s while to furnish an apartment, rather than try to rent it unfurnished. What sorts of situations are most appropriate for this strategy?

Scott Safadi thinks that one of the ideal circumstances you can have for furnishing an apartment is if you are renting in a college town. By furnishing the unit, you can compete with pricey and extremely limited on campus housing. By providing a nice product, fully furnished, you open yourself up to a much larger pool.

Scott Safadi thinks that the second ideal circumstance for renting a furnished unit is if you are in a very desirable location. In these cases, you open yourself up to the possibility of finding corporate renters, who would house their temporary workers with you. You sign a long term lease with the company, but allow them to change tenants as they need do. In this case, I suggest you create a clause that requires that they submit all tenants to you for screening in advance, as you want to ensure you don’t end up with a squatter. In a prime location, you could also rent to people on a long term vacation (1 year) or sabbatical. You do limit your options in this case, but if you are able to get a corporate renter, you could end up with a very long term relationship, which minimizes turnover and vacancy expenses.

Scott Safadi warns landlords to think carefully before taking the plunge into corporate rentals. If your market isn’t right for the product, you will have limited yourself to a very small renter pool and you may find yourself putting your nice new furniture up for sale on Craigslist before you know it. If you have ample storage space, you can offer the unit two ways, which could make for an ideal situation.

Scott Safadi believes that the rental market is constantly changing and you must always be looking for ways to maximize your clients’ ROI.

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