Do Furnished Apartments Cost More to Rent?
Deciding between furnished and unfurnished? Gain insights into the true cost differences and when these rentals provide practical value.
Furnished apartments typically cost more than unfurnished ones. This premium covers the landlord’s investment in furniture and household items, and offers tenants the convenience of moving in without furnishing a space.
The Cost Premium of Furnished Apartments
Furnished apartments typically command higher rents because of the financial outlays and ongoing responsibilities landlords undertake. The initial capital expenditure for furniture, appliances, and essential household goods can range widely, from approximately $3,500 for a modest studio to over $15,000 for a two-bedroom unit. This upfront investment is then recouped through the rental income.
Beyond the initial purchase, landlords face continuous costs related to wear and tear, requiring regular maintenance, repairs, and eventual replacement. The ongoing need to refresh or replace items, coupled with the potential for higher tenant turnover, necessitates a higher monthly rent to maintain profitability.
The higher monthly rent also reflects convenience for the renter. Furnished units reduce the financial and logistical challenge of purchasing and moving furniture. While the monthly rent is higher, the overall cost to a tenant over a short period might be comparable to or less than an unfurnished apartment once moving and furniture acquisition costs are factored in. For instance, furnished one-bedroom apartments might cost 15% to 40% more per month, covering immediate readiness and necessities.
What “Furnished” Encompasses
When an apartment is described as “furnished,” it implies the inclusion of various household items, though the exact inventory can differ. A standard furnished apartment typically provides major furniture pieces such as a couch, beds, a dining table with chairs, and essential kitchen appliances like a refrigerator and stove. This basic level allows a tenant to move in without needing to acquire large, fundamental items.
The term “fully furnished” or “turnkey” signifies a more comprehensive setup, often extending to smaller items. These can include kitchenware like dishes, pots, pans, and utensils, as well as linens such as towels and bedding. Some fully furnished units might even feature decorative elements like artwork, small appliances such as toasters and coffee makers, or in-unit laundry facilities.
Conversely, a “semi-furnished” apartment offers fewer items, usually just the most basic furniture and major appliances, requiring the tenant to supply many essentials. Renters should confirm a detailed list of included items to align expectations.
Common Scenarios for Choosing Furnished
The higher cost of a furnished apartment is practical for specific tenant situations. Individuals on short-term stays, temporary work assignments, traveling professionals, or students find furnished options suitable.
People relocating to a new city without their existing furniture, or those undergoing home renovations that necessitate a temporary living arrangement, also benefit from furnished rentals. In these scenarios, the added monthly expense is offset by avoiding significant upfront costs for new furniture, the logistical challenges and expenses of moving existing belongings, or the storage fees associated with household goods. The flexibility of shorter lease terms, which are more common with furnished properties, also aligns well with these transient needs.