When it comes to managing a rental property in Merced, one big question landlords often face is whether to furnish their rental units. While furnishing can add value, it also comes with certain responsibilities.
At Rental Zebra, we help property owners navigate these choices every day. Here’s what you need to know before making the decision.
The Benefits of Offering a Furnished Rental
Higher Rental Income Potential
One of the biggest advantages of furnishing your rental is the potential for increased rental income. Furnished units can command higher monthly rates, particularly when catering to short-term renters, professionals on temporary assignments, or students who value convenience. With the proper setup, you can offset the furnishing costs through premium rent pricing.
Reduced Vacancy Rates
Furnished rentals tend to attract tenants who are ready to move in immediately, which often results in quicker turnover and fewer days sitting vacant. This is especially true in Merced, where the university, local hospitals, and business community create a steady demand for short-term housing.
Streamlined Turnover Process
Furnishing your rental also simplifies turnover. With a set list of inventory and standard furnishings, cleaning and preparation between tenants becomes faster and more consistent. You avoid the surprises that sometimes come with tenants moving large furniture in and out.
Appeals to Specific Tenant Demographics
In Merced, there’s a consistent flow of people in transition—students, medical professionals, traveling nurses, and corporate clients. These groups often look for short-term, fully furnished housing. By catering to their needs, you can tap into a reliable market segment.
Challenges Landlords Should Be Aware Of
Higher Upfront and Maintenance Costs
Furnishing a rental requires a significant upfront investment. You'll need to purchase quality furniture, appliances, and household items. Over time, wear and tear will lead to repairs or replacements. This can impact your bottom line, especially if turnover is frequent.
Limited Tenant Pool
While furnished rentals are attractive to some, they may limit your appeal to long-term renters who already own furniture or prefer to personalize their space. This could lead to longer vacancy periods if you’re not targeting the right demographic.
Increased Liability and Legal Complexity
Providing furniture comes with added responsibility. You’ll need to ensure that all items are safe and in good condition. Additionally, lease agreements should include clauses detailing the condition of furnishings, responsibilities for damages, and inventory lists to avoid disputes.
Insurance and Storage Considerations
Landlord insurance may need to be adjusted to cover damage or loss related to furnishings. Also, if a tenant requests to remove any furniture temporarily, you’ll need to have a safe and secure storage option available, which adds complexity to your property management plan.
Setting Your Rental Apart in Merced
In a competitive rental market like Merced, offering a furnished property can help your listing stand out. Keywords like “move-in ready” or “fully furnished” add appeal to your marketing efforts. These properties often generate more attention and faster inquiries from renters who value convenience and flexibility.
Making the Right Decision for Your Investment
Ultimately, deciding whether to furnish your Merced rental comes down to your investment strategy. Consider your target tenant, desired rental income, maintenance capabilities, and how much involvement you're comfortable with. If you’re unsure, working with a knowledgeable local property manager can help you weigh the options based on real market data and trends.
Partner with a Local Expert
At Rental Zebra, we help landlords across Merced make informed decisions about furnished versus unfurnished rentals. Whether you're leasing to students, professionals, or families, our team provides the insight and support you need to succeed.
If you're considering furnishing your rental and want to explore your options, visit our Services page or Contact Us to speak with our property management team today. We're here to help you find the best path forward for your rental investment.
Frequently Asked Questions
How much more rent can I charge for a furnished rental in Merced?
You can typically charge 10–20% more for a furnished rental, depending on location, furnishings, and tenant demand. Short-term or executive rentals can command even higher rates.
Who maintains the furniture in a furnished rental?
The landlord is generally responsible for maintaining and replacing furniture. It’s important to inspect items regularly and factor in ongoing maintenance costs when pricing your rental.
Are furnished rentals better for short-term or long-term tenants?
Furnished rentals are ideal for short-term tenants, including traveling professionals, students, and corporate clients. Long-term renters usually prefer unfurnished units so they can use their own belongings.
How should I protect the furniture in my rental?
Use a detailed inventory list, include specific lease clauses, and take security deposits that cover potential damages. Regular inspections between tenants also help prevent major issues.
Is insurance different for furnished properties?
Yes, you may need additional coverage for landlord-provided items. It’s best to speak with your insurance provider to make sure your policy covers furniture and liability appropriately.
