How to Rent Out a Furnished Apartment: Pricing and Protection

Renting out a furnished apartment is an excellent way to provide value to tenants while increasing your rental income. However, to successfully rent out a furnished apartment, you must balance the convenience of providing furniture with the legal requirements for setting a fair price.

A Step-by-Step Guide to Renting Out a Furnished Apartment

Step 1: Calculating the Furniture Surcharge

When you rent out a furnished apartment, you are entitled to add a surcharge to the base rent to cover the wear and tear of your belongings. This surcharge should typically reflect the annual depreciation of your furniture, usually calculated at 10-15% of the items' current market value.

Step 2: Creating a Detailed Inventory List

An inventory list is your primary form of protection. Before the tenant moves in, document every piece of furniture, appliance, and kitchen item. Both parties should sign this list to confirm the condition of the items.

Step 3: Photo Documentation

Take high-quality photos of all items. This serves as objective evidence if a dispute arises regarding damages that exceed normal wear and tear.

Step 4: Drafting the Agreement

Ensure your rental contract explicitly states that the unit is furnished. Include a clause that holds the tenant responsible for damages caused by negligence.

Step 5: Insurance Coverage

Always inform your insurance provider that you intend to rent out a furnished apartment. Standard home insurance may not cover damages caused by tenants.

FAQ

How much extra can I charge for furniture?

The surcharge should be reasonable and justifiable. It is best to calculate it based on the annual depreciation of the items provided.

Is an inventory list mandatory?

While not strictly a legal requirement in every jurisdiction, it is highly recommended to prevent disputes over missing or damaged items.

What if a piece of furniture is damaged?

If the damage is beyond normal wear and tear, you can deduct the cost of repair or replacement from the tenant's security deposit, provided this is clearly stated in your contract.