The decision to lease your luxury property comes with several other decisions as well such as the type of property management team you should choose, whether you should leave it furnished, and your price point. Leasing luxury property is slightly different than a typical or traditional multifamily property or even a single-family house. There are different factors involved when you're talking about luxury. And, if you don't think that luxury homeowners choose to lease their property, you would definitely be wrong because there is a market for luxury leased property.
In places like Hollywood Hills, Belleair, Beverly Hills, Malibu, and these high-end, affluent communities, luxury leasing is actually very popular. Not all high-end clientele choose to own their own home. Leasing a property gives the tenant the freedom to move on, not deal with any maintenance, or simply have the option of picking up and leaving should something occur such as a business opportunity in one place or another.
If you're planning on leasing your luxury property, you might be stuck with the decision on whether you should furnish it or not. A lot of luxury homes are already decked out in the finest of furnishings and if you have other homes, you may not want to deal with the furnishings, furniture, or personal property and choose to lease it with the home. You can also get a higher price from your rental agreement if your home is furnished, but that might also be turning some applicants away.
Furnished homes tend to lease for more money because there is more on the table when it comes to the property in general. You have more items in the home and the tenant can simply move in and move out without having to worry about their property, moving or transferring any furnishings, or dealing with moving companies.
You may also deal with the higher end client. Many leasing clients do so for a short period of time and the last thing they want is to move in all of their furniture only to move it out 6 or 12 months later. This avoids all of that and may be more attractive to the leasee.
Furnished homes can also be tax-deductible. You can include all of the furnishings in your depreciation when dealing with taxes.
And furnished homes can reduce maintenance costs because people are not moving in and out big chunks of furniture that can damage the home, walls, steps, and flooring. Simply leaving everything word is will definitely reduce maintenance costs.
The basics should include furnishings in just about every room. The living room should have a sofa, table, lamp and perhaps a bookshelf or coffee table. The bedroom should have a bed, nightstand with lamp, dresser, and perhaps the desk given the size. The dining room should have tables and chairs. A bathroom should have a shower curtain, wastebasket, and floor mats. In the kitchen should be fully stocked with utensils, dishes, glassware, pots, pans, and appliances.
The choice to furnish your luxury leased property is truly up to you but there are benefits. If you plan on storing the items anyhow, it might benefit the property overall and your overall bottom dollar to leave the furnishings in place. If you are concerned about alienating a part of the tenant pool, consider making it an option. You can always offer a furnished home or condo with the option of a lower-priced fee if the home is not furnished.
Information by luxury lease property manager in Hollywood Hills and Beverly Hills, Luis Pezzini.
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