A very common question we get from owners moving out of their primary residence to rent it out is: should I rent my property furnished? The answer comes down to whether your home would make a good short term rental.
Rent Long Term Properties Unfurnished
For long term rentals, which are six month leases or more, furnished homes will lose. You’ll make less money and have longer times on market. Years ago, furnished properties made more sense. With supply and demand, it evened out.
Today, only a small portion of people want a long term furnished rental. Most people want to choose their own furniture. Renting out a furnished property doesn’t work anymore unless you’re doing a short term rental.
Short Term Rental Market
In San Diego, there are a lot of tourist areas. This means your home may be a good candidate for an Airbnb or a VRBO rental. The positive of short term rentals is the income. If you have a rental that earns you $2,000 a month with a long term lease, that same property could rent for $1,000 per week.
However, there are a lot of drawbacks. You might anger your neighbors, you’ll have more wear and tear, and higher expenses. There’s a transit occupancy tax in San Diego, and you’ll need a business license. Property management is more expensive, and you’ll have to pay between 20 to 25 percent for professional management. If you do it yourself, a lot of time needs to be invested.
Run the numbers before you decide whether a short term rental makes sense. And remember, with long term properties, you don’t want to bother furnishing.
If you have any questions about how to rent your property out, please contact us at Good Life Property Management.