The Guide to Furnishing Your Property: Insights, Costs, and Budgeting Tips for Landlords

Furnishing a property, whether for personal use or as a rental investment, is a strategic endeavor that demands careful planning. In the last decade, the rise of short- and mid-term renters seeking move-in-ready spaces has prompted landlords to explore semi-furnished and fully-furnished options. This not only caters to a specific segment of the rental population but also allows property owners to command higher rates. In this guide, we delve into the dynamics of furnishing a house, exploring average costs, budgeting tips, and key considerations for landlords.

Understanding the Landscape: Furnishing for Rental Profitability

Rental owners can boost their monthly income significantly by offering furnished properties, with fully furnished units commanding 10-20% more on long-term leases and up to 40-50% more for short-term rentals like vacation homes. First-time tenants, recent graduates, and traveling professionals often find the convenience and flexibility of a furnished rental worth the premium.

How Much Does It Cost to Furnish a House?

The cost of furnishing a house can vary widely, with the average falling around $16,000. Frugal owners, however, can set up smaller spaces for as little as $3,500 using second-hand items, while those prioritizing quality and luxury may spend up to $100,000 on larger homes with multiple rooms.

Factors Influencing Furnishing Costs

Several factors impact the overall cost of furnishing a home:

1. Property Type: Different property types, such as family homes, vacation homes, or mid-term rentals, attract diverse tenants with varying needs, influencing furnishing costs.
2. Square Footage: Larger homes necessitate more furniture, leading to increased costs. Bulk purchasing may become challenging in bigger spaces with diverse rooms.
3. Furniture Quality: The quality of furniture significantly contributes to costs. Flat-pack furniture is more budget-friendly than high-quality, durable pieces.
4. Style Preferences and Decor: Catering to specific styles or themes may require unique and often more expensive furnishings, especially if sourced internationally.
5. Delivery and Installation Fees: Expedited delivery, white-glove delivery services, and assembly costs contribute to the overall expenses.
6. Single vs. Multiple Suppliers: Buying from a single supplier may allow for negotiation on prices and minimize delivery fees.

Cost Breakdown by Room

• Master Bedroom: $2,000 - $15,000
  Bed frame, mattress, nightstands, dresser, blinds/curtains, ceiling lights.

• Guest Bedroom: $1,500 - $12,000
  Bed frame, mattress, nightstand, desk, desk chair, closet (if no built-in), ceiling lights, curtains/blinds.

• Living Room: $4,000 - $18,000
  Couch, armchair, coffee table, TV, TV stand, ceiling lighting, curtains/blinds.

• Dining Room: $3,000 - $20,000
  Dining table, 4-12 dining chairs, sideboard/display case, ceiling lights, curtains/blinds.

• Kitchen: $3,000 - $30,000
  Microwave, coffee machine, toaster, kitchen table/island, kitchen chairs/stools, utensils, mugs, cups, plates, garbage bin, ceiling lights, curtains/blinds.

• Bathroom: Up to $1,000
  Shower curtain, shower liner, shower shelf, wastebasket, plunger, toilet brush, bath mat, soap dispenser, toothbrush holder.

• Home Office: $2,500 - $15,000
  Desk, office chair, desk light, laptop stand, desk organizer, power strip(s), ceiling lights, curtains/blinds.

• Outdoor Space: $3,000 - $20,000
  Pool lounge chairs, patio umbrella/gazebo, outdoor dining set, outdoor grill, fire pit, hot tub.

Budgeting Tips for Landlords

• Prioritize Needs Over Wants: Start with essential furniture and assess budget availability for non-essential items.
• Fill Rooms Strategically: Prioritize furnishing rooms that will be used the most to ensure ample space for tenants.
• Focus on Quality Over Quantity: Invest in durable pieces, especially for high-traffic areas, to reduce the frequency of replacements.

Finding the Best Furniture Deals

1. Shop Secondhand: Explore thrift stores for unique and cost-effective finds.
2. Ask Family and Friends: Seek furniture from loved ones, often at a lower cost or even for free.
3. Search Online Marketplaces: Platforms like Facebook Marketplace, Craigslist, and eBay offer diverse options at varying price points.
4. Purchase at Strategic Times: Take advantage of sales on holiday weekends or during seasons when stores refresh their inventory.

Furnishing an Airbnb Rental

• Costs range from $3,000 to $50,000, depending on the property type and target market.
• Keep Target Guests in Mind: Furnish according to the needs and preferences of the specific guest demographic.
• Choose Furniture Wisely: Invest in quality, low-maintenance pieces that align with the property's design and location.

The Bottom Line on Home Furnishing Costs

Creating a smart budget for furnishing is essential for landlords, considering property size, type, and guest needs. By understanding influencing factors, shopping strategically, and prioritizing quality, landlords can strike a balance between affordability and quality. The goal is to provide a comfortable and inviting space, maximizing the property's appeal and ensuring a positive experience for tenants.