The real equation of the furnished rental or “who earns what”

Furnished rentals, goose that lays golden eggs for owners who in their pockets, turning thumbs? Not so sure...

The furnished rental is often considered more profitable than renting empty. But watch that performance leads to having a very incomplete idea of this market.

The owner does not put in his pocket all that the customer pays.

The agency that puts the apartment rental fee much to pay its expenses and its business. Indeed, it is responsible for the promotion of the apartments, via a website, advertisements, publications, communications and many other means. It then manages the selection of the apartments according to the criteria of its own, she takes care visits, photos, collect all the information that will be useful to tenants to make their choice. It handles many customer questions regarding apartments, facilities etc. It can also manage payments, contracts, insurance.
According to the formulas, it also manages the residence of client (host, interventions during the stay, departure, cleaning etc ...).

Many costs are borne by the owner, who can bill back if the tenant stay exceeds a certain period. For weekly rentals, the owner typically pays electricity, Internet subscriptions / TV / telephone charges and taxes on the building.
In addition it may be also in charge of the final cleaning and management of all the linens (sheets, towels, tea towels) as well as the reception, inventory reports, monitoring stay, etc.

The furnished apartments are rented from 10 to 30% more expensive than an empty apartment. But we must invest more money initially in furniture, equipment (appliances), dishes, etc. If it is a high-end customers and / or international, the expected amenities (washing -Dishes, washing machine, dryer, flat screen TV etc) are a big investment, and compete it is important to denote by a real decoration and not a collection of objects that we no longer want at home. In addition we must constantly maintain this equipment in a state, which has a cost.

vacancy of the risks are clearly higher also furnished rental in empty location, where a lease lasts 3 years. The tenant who remains in empty rental is responsible for minor maintenance. In furnished rental is often the owner.

It is easily understood that beyond the money to rent a furnished apartment requires a lot of personal investment and time to the owner, which does not figure in money, but in a lot!

 

Alex Wagner - A La Carte Paris apartments