Furnishing and decorating your rental apartment can add significant value to your unit, enabling more lucrative lease structures. Case-in-point: Executive Rentals. Furnished executive rentals are often rented out on one or three-month leases, and are significantly more valuable than traditional year-long leases.
A quick refresher on executive rentals
Furnished executive rentals provide temporary housing to traveling professionals. Typically located near high-traffic corporate campuses or central business districts, executive rentals offer flexible lease terms and convenient places for business professionals on long-term travel assignments or training visits to stay.
Furnished executive rentals include everything necessary for business professionals to live comfortably—all they’ll need to bring is a suitcase of clothing and toiletries.
Why furnish an executive rental?
While there’s an additional investment associated with preparing a furnished executive rental, providing furniture and home goods in your apartment for temporary tenants allows you to command significantly higher rents. This is doubly true if your property’s location is convenient.
If you’re planning on furnishing your unit prior to renting it out, make sure the décor matches the value you’re attempting to command from your apartment. Furnishing a rental unit with cheap, unattractive appliances, kitchen goods, couches and beds will significantly reduce the price you can seek from your renters.
Conversely, if you spend too much money furnishing your unit with the highest-end designer goods, you’re going to have a hard time recouping your investment. Even when renting to professionals in need of a temporary place to stay, there’s a strong likelihood the furniture will become worn or damaged over the course of several tenant stays.
Learning how to secure and install attractive yet affordable furnishings at your executive rental unit could make or break your strategy.
What to include in a furnished apartment?
If you’re thinking about furnishing your rental unit prior to putting it up for lease, get an understanding of the types of furnishings typically included with executive rentals. Here are some of the basics you’ll need to include in your furnished rental to list it as a short-term executive rental unit:
· Mattress and bed frame: Every furnished rental needs to include a mattress and bed frame. Select a comfortable, mid-range mattress in the middle of the “firmness vs. softness” scale. This ensures your mattress is comfortable to a majority of potential renters.
· Basic bedding package: Your executive rental needs to include at least one basic bedding set. This includes a comforter, sheets, pillows and duvets. The bedding set should be comfortable, and match the décor of the rest of the apartment.
· Couch or loveseat: There should be at least one comfortable seating option available for residents to lounge on. Purchase a couch or loveseat that matches the aesthetic of the rest of the unit. Always look for furniture with durable upholstery, like leather.
· Desk and chair: You need to make sure there’s a space for your professional tenants to catch up on work while they’re away from the office. You’ll need to have a desk and comfortable desk chair in your executive rental unit.
· Lighting: Many apartments are tragically under-lit. Resolve this by purchasing several floor and table lamps to place around the rental unit. Be conscious of the way lighting can “build” space within a room, and make sure lighting is even throughout.
· Basic appliances: Even if you’re not furnishing your apartment, chances are you’re going to rent it out with basic appliances included. Make sure an oven, microwave, water kettle and refrigerator are included. Consider purchasing a toaster or toaster oven, as well.
· Bath towels: Make sure that the bathroom is ready for use, including bath towels, shower curtains and rugs. Most executive rentals include a monthly or bi-weekly cleaning service that replaces towels and mats and rugs.
· Internet connection: Executive rentals should be ready for use as soon as the resident arrives, meaning an internet connection that’s already installed and active. It’s important to select a high-speed internet provider offering both affordability and reliability for you and your tenants.
· Cooking equipment: Pots, pans, bowls, plates and cutlery should all be included at your executive rental. Your tenants shouldn’t feel the need to bring or purchase anything other than their own clothing and food while staying at your property.
Finding affordable furnishings
Once you know what you’ll need to include at your executive rental, it’s time to start hunting for an affordable furnishing source! Begin your search for quality, affordable furnishings at these places:
· Shop auctions: Attending furniture auctions is one way to find high-quality corporate or hotel furniture for relatively low prices. If a furniture store, hotel or office goes out of business, for instance, they may auction off their remaining furniture.
· Buy in bulk: Consider purchasing all of your furnishings and supplies from the same wholesaler. This could provide you with the opportunity for a steep discount. If you’re purchasing many goods from the same supplier, don’t hesitate to haggle.
· Use price matching: If you’re buying most of your furniture from the same supplier, but find certain pieces available for less from a competitor, ask for a price match. If the price gap is reasonable, many sellers will match to avoid losing the whole sale or a large portion of it. This can simplify your transaction and make it more affordable all around.
· Purchase the floor models: Investor shopping to furnish one or two units may want to consider purchasing furniture floor models. These are usually in perfect working order, and only bear a few small cosmetic scratches. Rental furnishings will see wear and tear anyway, so there’s no shame in buying “like new” instead of a brand-new.
While furnishing an executive apartment may represent extra spending at the outset, it could help you better leverage a strategic location for the optimal return on your investment.
Finding affordable, yet stylish furnishings for your executive rental invites flexible lease terms, helping you provide your tenants with the best possible value. You’ll also command significantly higher rents, move-in fees and security deposits when leasing out a fully furnished apartment, as opposed to a bare unit.