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Do you want to make renting out your home as profitable as possible? A short-term tenant, on the other hand, wants to be as comfortable as possible. The optimum meeting point for these objectives is a living experience that you invest in and that the tenant is willing to pay for. The factor over which you have the most influence is the furnishing.
Our article will help you avoid the most common stumbling blocks and implement a cost-effective furnishing solution that can withstand the challenges of short-term rentals and tenant turnover. To do this, we cover the following topics:
Each separate piece of furniture contributes to the practicality, comfort and well-being of the tenant.
A coherent and functional furnishing solution is a way to stand out from other homes of the same size and type in the area. For each space, you can choose furniture that works both individually and as a whole. Therefore, you have many options to make your living space more attractive than your competitors.
According to Taloustaito, the price of a furnished apartment in Helsinki is 1.5 times higher for short-term rentals. In Tampere and Kuopio it is twice as much. A well-furnished apartment will also get you more contacts, so you can select the most suitable potential tenants. Those with good reviews or who give a good impression in their messages are more likely to respect your apartment and reduce the need for repairs and other maintenance. So, by furnishing your property, you increase the profitability of renting it out.
Short-term rentals, i.e. accommodation provided by private individuals, are still a relatively new phenomenon. Many people are mistaken in thinking that the difference with long-term rentals is, as the name suggests, mainly the length of the rental period. When comparing renting for months or years to staying for only weeks or days, long-term tenants have significantly lower expectations than those who stay.
Every tenant has living needs that a successful landlord will try to meet. They need to eat, sleep and feel safe. The line between furnishings and fittings is sometimes blurred, but by reference to the above, furnishings can be said to include, for example, a fridge. A sense of security is created by effective door and window locks and by furnishings such as curtains covering the entire window. In addition, the tenant wants comfort and cosiness. For example, a sofa can be comfortable, while adequate lighting adds to comfort.
Some appliances and equipment are wholly or almost indispensable to ensure habitability. Here's a list of things that are required for a short-term rental property, depending slightly on your type of property and the time of rental:
Guests expect rooms and facilities to be at least practical.
Comfort is how a bed, sofa and bed linen, for example, feel. Be sure to consider all the smaller furnishings, such as seats, cushions and pillows.
The neutral and modern interior will appeal to as many tenants as possible. Adapt the suggestions to what you already have in your own home.
The ultimate purpose of furnishings and fittings for you as a landlord is to make renting worthwhile, at least in terms of practicality and probably also in terms of comfort and convenience. What would accentuate or complement the features of your particular property?
Meeting the basic needs and most common wants of tenants goes a long way. Design your home to be practical, comfortable and welcoming, at least for most people. But you can also make it more attractive to one or more target groups. If you have more than one option for a particular piece of furniture, you can lean towards one that works both generally and for specific target groups.
For example, students, business travellers and companies renting can use desks, chairs, modern electronics and fast WiFi. The family-friendly apartments have child locks, as well as protection for surfaces and furniture. Those looking for temporary accommodation, for example for renovations, will appreciate practicality and good facilities such as laundry and cooking facilities. Holidaymakers, on the other hand, are interested in the overall experience, enhanced by aesthetic decor and the ability to entertain themselves, for example by watching cable TV.
If you don't know your target audience yet, it's best to hold off on making big investments in furniture. Keep in mind that the purpose of furnishing is to get value for money. The rental property should be used as often as possible, and tenants will be willing to pay more for an apartment that they like. If your property is often unoccupied, the target group paying 10% higher rent will not cover your loss.
When planning your furnishings and target group, focus on maximising the occupancy rate and rental price of your property.
The largest target group for short-term rentals is holidaymakers. For them, comfort and atmosphere are the most important things, which can be either in the form of a homely atmosphere or a new experience of living. Most holidaymakers are looking for a balance between relaxation and entertainment. City centres and activities provide them with entertainment, while housing is a place to relax. This requires comfortable sleeping areas, sofas and seating, as well as calming decor and colours. However, entertainment such as televisions and board games can be added to the property. Many holidaymakers are families, so you can make it more child-friendly by providing a high chair and cot. When there are more people staying at any one time, it's worth investing more in kitchen facilities.
For holidaymakers, a rental home is part of the experience, and you can make it a pleasant one for them.
For business travellers, the most important thing is to work in an environment where they can concentrate and recover well. They don't have as much time to relax as holidaymakers, so they crave comfort when work allows. A soft bed and a sofa offer the opportunity to take breaks or work in a reclining position. Blackout curtains and air conditioning help you fall asleep. The adjustable desk and chair are sure to be put to daily use. High-speed internet and good lighting and charging points contribute to work efficiency. Busy occupants will be pleased with a working microwave and coffee machine.
For the business traveller, practicality and comfort are key to streamlining work-intensive accommodation.
In the case of business customers, the end users are their employees. For them, practicality is even more important than for business travellers. A sufficiently large living room should have a conference table and chairs and a blank wall for a projector screen. In addition to ergonomics, it would be an advantage if, for example, the sofa converts into a bed and there is sufficient storage space, i.e. the furniture is 'modular'.
Businesses are able to pay and are prepared to pay higher rents for well-furnished and equipped accommodation. Project work often lasts for a couple of months, so you get closer to the return on a short-term rental. You get the stability of a long-term rental, but with the commitment-free nature of a short-term lease. By renting to businesses, you reduce the high turnover and management costs of short-term tenants.
Finding corporate clients on your own can be a challenge, so check out Immodan's secure brokerage services
Each room has its own characteristics. There are corner apartments, through-houses, open kitchens, alcoves and other factors that influence the furnishings. You should therefore apply the following tips to the layout of your rental property.
As the place where guests spend their time and often the largest space, it should combine practicality, comfort and convenience.
A base for sleep and recovery. When you're here, your eyes are closed most of the time. That's why comfort is the key.
Here, the focus is on practicality and also hygiene.
A place for cooking and dining. A good kitchen is above all practical.
Short-term hiring can be profitable, but as the name suggests, it has a high turnover rate. Each new tenant carries the risk of damage to the furniture or equipment of the dwelling. High ratings on a user's profile on Airbnb, Booking or other platforms are a sign of respect for the property, but not a guarantee. Remember, a renter is at a higher risk of being careless in a new environment they are not used to.
Some furniture and materials lose their value and wear out quickly in use. For example, upholstery, carpets and untreated or poorly treated wood are susceptible to deterioration.
You can ask your landlord for advice on planning and organising maintenance. Check your plumbing, heating system and electrical installations every year. Fixing small repairs and problems will prevent bigger problems from occurring in the future.
Maintenance includes at least basic cleaning between guests. In multi-week contracts, it may be specified that they must, for example, vacuum weekly. Slippery floors, sticky surfaces and dusty corners are a nuisance to guests, furniture and electronics. Make sure that either you, the guests or the cleaning company take care of the apartment.
A deposit is typically included in the accommodation contract. However, brokerage services such as Airbnb and Booking typically only cover damages above around €1000. You can ask for a deposit, but the maximum is €500. Some accommodation seekers avoid particularly high deposits, so your property may remain empty if it is not in high demand. However, without a deposit, you will have to pay for repairs out of your own pocket.
Home insurance is a good idea, even if you use collateral. However, be aware that repeated damage can increase the price of the insurance. It is worth making regular checks, at least for accommodation lasting several weeks if possible. Insurance can also protect your property against water damage, fire and burglary. Get a home insurance policy with a deductible and a level of coverage that covers all the furniture investments you want to protect in your property.
The surest way to make furnishing worthwhile is to buy furniture that is affordable and durable.
When looking for second-hand furniture, you can browse flea markets on the spot or online. At the recycling centre and at mulla flea markets you can get a more detailed picture of the furniture. Facebook Marketplace, Tori.fi, Huuto.net and other online flea markets are full of options. Buying from big stores like IKEA is more reliable and easier. You can also find new or refurbished furniture at lower prices online. It's easier to find uniform furniture such as shelving units, tables or seating sets by browsing the catalogues of commercial retailers.
Used furniture doesn't have to look worn. You can find a lot of furniture in mint condition or in very good condition, whose sales value is significantly reduced just by being used. However, this does not mean that the use value has decreased. Moreover, even furniture in poor condition can be made functional with a little refurbishment. You can repaint a worn chair, change the upholstery on a seat or even hide a hole in a sofa by fixing its side to the wall. Keep in mind, however, that transporting and moving larger pieces of furniture can take time and/or effort. Furniture recycling is "in", so many people want to get rid of their excess furniture for little or no cost. However, when shopping online, remember to check the condition of the furniture on the spot or at least concentrate your shopping on highly rated flea market sellers.
Choose cheap, durable and easy-to-clean materials, as long as practicality, comfort or convenience are not significantly compromised.
Multi-purpose or "modular" furniture may be a little more expensive, but it allows you to kill two birds with one stone.
For example, with sofa beds and daybeds, you save at least two square metres of space that you can use for other furniture or to create a sense of space. An adjustable table can be used as both a desk and a dining table, at least when accommodating only two or three people at a time. Under-bed drawers and wall shelves free up space and help guests keep the apartment tidy.
Congratulations! You are now more able to furnish your rental property. Did you have a lot to say? Don't worry, you don't have to do everything at once.
Here's a reminder for your first furniture purchases:
Your thoughtful furnishing solution will be rewarded with higher occupancy rates and pricing for your rental property.
So now to furnish!
