As landlords, we’re always looking for ways to maximize the return on our investment properties. One lucrative option is renting out furnished properties, which can bring in 25-75% more income than unfurnished units. However, this approach comes with its own set of challenges and considerations.

The Pros and Cons of Furnished Short-Term Rentals

While furnished short-term rentals can be highly profitable, they require more frequent turnover and management. This includes:

  • More frequent marketing and tenant screening
  • Increased property showings
  • Multiple lease signings per year
  • Higher risk of vacancy periods
  • Initial cost of furnishing
  • Ongoing maintenance of furnishings

Despite these challenges, the potential for increased income makes furnished short-term rentals an attractive option for many property investors.

5 Key Considerations for Short-Term Rental Success

To make the most of your furnished short-term rental, consider these crucial factors:

1. Understanding Your Target Tenants

In urban areas like downtown Toronto, short-term furnished rentals often attract:

  • Young professionals relocating for work
  • International students pursuing post-graduate education
  • Corporate clients needing temporary housing

These tenants typically seek a “home away from home” for stays longer than a hotel visit but shorter than a traditional lease.

2. Choosing the Right Location

Location is critical for short-term furnished rentals. Ideal areas include:

  • Downtown cores
  • Near universities and business districts
  • Areas with good public transportation

For more insights on choosing the right location, check out this guide to buying rental property.

3. Investing in Interior Design and Decor

The aesthetic appeal of your rental can significantly impact its listing price. Consider:

  • Working with a professional interior designer
  • Choosing durable, stylish furniture
  • Creating a cohesive, inviting atmosphere

4. Enhancing Accessibility and Convenience

Make your rental stand out by offering convenient move-in options:

  • Provide airport transportation
  • Offer flexible check-in times
  • Create a detailed welcome guide for the property and neighborhood

5. Including Premium Amenities

Short-term furnished rentals should offer more than traditional leases:

  • Cover utilities, including electricity and high-speed internet
  • Consider including cable TV packages
  • Provide air conditioning
  • Offer weekly cleaning services

Professional Management for Your Short-Term Rental

If you’re considering offering your investment property as a short-term furnished rental but don’t want to handle the day-to-day management, professional property management services can help. Contact our team to learn how we can maximize your rental income while minimizing your stress.

By focusing on these key areas, you can create a successful and profitable short-term furnished rental business. Remember, the key is to provide value that justifies the premium price point of furnished rentals.