Short term rentals, Mid term rentals, and Furnished Rentals 101
Real estate investors are moving to furnished rentals in droves in hopes of doubling or tripling their potential return on investment over traditional long term rental properties. Some investors will do well while others will struggle to make ends meet, potentially having to sell a property when they cannot afford a cash flow loss.
It seems like everyone and everyone is doing it since platforms like Airbnb, VRBO, Furnished Finder and many others have made marketing such properties very user friendly for both the owner and the renter.
As you may know, I am also a real estate investor with short and long term rental properties. My experience as an investor and a stager has given me the opportunity to help some other investors as well! This is where it gets really fun - helping others build wealth and create their own businesses is part of my love language!
The Key to Short Term Rental Success
One key to success in the short term rental business is to properly design and photograph your property.
I recently helped a new investor with a mid-term rental set up. The property is strategically located near two very large university hospitals and will cater to traveling nurses, doctors or university staff. The home is older but was completely renovated by the previous owner, making this a turnkey opportunity for the investor! All it needed was everything!
Furnished Rentals vs. Vacant Properties: What do you need to know?
Setting up a furnished rental is not like staging a vacant property.
In those homes, the cabinets are bare and the bedding is just a cover. Nothing is meant to get used and no one will ever cook, sleep, work or entertain in those spaces.
To set up a successful furnished rental, you must anticipate and provide every single thing your renter might need. Black out curtains. Comfy bedding. A wine tool. A blender. A first aid kit. And a vacuum cleaner!
The shopping list is long and the price can add up quickly. But in order to get someone in the door to use and enjoy all those little things, the home must be well designed and professionally photographed to attract the best, highest paying renters.
A Real World Example
Just to give you a taste of one of rooms in this new property, here’s where I started and some of the larger items that were included.
This room is warm and cozy, super comfortable and in this case, pretty small, so we needed to strategic about finding pieces that were big enough, but not too big. Here’s the professional shot of the completed room!
This particular home is a duplex, so it needed 2 of everything - 2 living rooms, 2 kitchens and 6 bedrooms total! We just finished this week so I am looking forward to seeing the investor’s listings and hearing about her success.
Let me know if I can help you with short term rental consulting or full design and installation services!
Shop The Look
Here are some of the items included in this design!
