Sacramento Rental Homes: Rent Furnished or Not?

If you're looking to lease out your Sacramento rental properties, but you're not sure whether you should furnish it or not, consider the following.

The benefits of renting your Sacramento rental properties furnished include being able to get more rental revenue. According to California law, you may also charge a higher security deposit when your rental unit is furnished. However, you must consider whether this higher rent is actually a pro or a con. For example, say you are renting a furnished unit for $3,000 a month as compared to $2,000 a month unfurnished. Your tenant moves out, but a piece of custom or vintage furniture that had a lot of value, whether sentimental or monetary, is broken, ruined, or had simply too much wear-and-tear to be functional anymore. These kinds of situations may happen if you provide your rental furnished. The bottom line is that if you decide to furnish your rental, don't keep anything there that would be a big loss or disappointment if it were ruined or stolen.

If you're set on the idea of furnishing your rental, it is a good idea to furnish it with non-valuable or non-sentimental items. Try a big-box store like IKEA or a quality thrift store to find furniture instead. Make sure the furniture is nice-looking and functional. This will ensure that you will receive the high rental revenue that comes with providing a furnished unit, but you won't have to deal with the stress of losing items that had sentimental or high monetary value.

Lastly, if you do rent your property furnished, it is important that you perform a very thorough inventory and incorporate it into the lease. Take pictures at every angle so you have proof of the kind of condition your furniture was in before the tenant moves in. This will protect you when it's time to figure out how much, if any, of the tenant's security deposit you will need to keep in order to cover your losses.