Furniture: The Missing Amenity in BTR?

Furniture: The Missing Amenity in BTR?

In the world of Build-to-Rent (BTR) properties, amenities like gyms, communal spaces, and high-quality finishes are often highlighted as key selling points. But there’s one amenity that’s often overlooked but increasingly gaining attention: furniture. While many BTR developments focus on offering attractive, well-designed units, the decision to furnish or not furnish these properties could significantly impact tenant satisfaction and property success.

Why is Furniture a Missed Opportunity in BTR?

1. Changing Tenant Expectations

   • Short-Term Rental Demand: With the rise of short-term rental platforms like Airbnb, and even business travelers seeking temporary accommodations, tenants are starting to expect furnished options more than ever. For many renters, especially young professionals or relocators, the need to buy furniture can feel like a burden. By offering fully furnished units, BTR developers can cater to the growing segment of renters who value convenience and flexibility.
   • Move-in Ready Appeal: Tenants looking to move quickly into a home without the hassle of purchasing and moving furniture are likely to gravitate toward furnished units. This is particularly true in urban areas, where people may only stay for a year or two and prefer the ease of having a fully furnished space.

2. Attracting a Broader Demographic

   • Appealing to Young Professionals and Expats: People moving for work or education often look for turnkey solutions. A furnished BTR apartment can be a great way to attract these tenants, who might not want the added cost and effort of furnishing an apartment themselves.
   • Student and Millennial Market: A younger demographic is more likely to prefer furnished units. Many students and recent graduates are looking for affordable, ready-to-move-into apartments. Offering furniture in a BTR property can make your units significantly more attractive to this group.

3. Higher Rent Potential

   • Premium for Furnished Units: Furnished units can command higher rents because tenants are paying for the convenience of not having to purchase or move furniture. This allows landlords and BTR developers to achieve a premium rent and offset the cost of furnishing the property.
   • Flexible Lease Options: Furnished BTR units often attract tenants who may not want to commit to a long-term lease. The ability to rent a property that’s fully furnished and flexible in terms of lease duration can be a win-win for both tenants and landlords.

The Benefits of Adding Furniture to BTR Properties

1. Shorter Vacancy Periods

   • Faster Tenant Turnover: Furnished properties often have shorter vacancy periods. Given that many tenants, especially in urban areas, are looking for a fully furnished place to live, you’ll likely see more interest and faster leasing in furnished units.
   • Meeting Immediate Needs: Tenants may be looking for a place to move in quickly, particularly in the case of job relocations or people moving to a city temporarily. Furnishing your units helps to meet their immediate needs and makes the property more competitive in a crowded market.

2. Improved Tenant Experience

   • Comfort and Convenience: Tenants appreciate having everything they need in a unit from the get-go. Furnished apartments remove the stress of moving in and getting settled. This can improve tenant satisfaction and increase the likelihood of them staying longer or renewing their lease.
   • Enhanced Design and Aesthetics: Well-chosen furniture can elevate the aesthetic of the space, making it feel more modern, stylish, and welcoming. A thoughtfully designed, furnished apartment helps create a positive living experience, which can translate into higher tenant retention rates.

3. More Flexibility for Different Markets

   • Appealing to Different Renters: Whether it’s young professionals, students, or those on temporary work assignments, furnished units can appeal to a wider range of people. Developers can adjust the furniture and layout based on the target tenant group, providing more flexibility in how the property is marketed and used.

Challenges of Furnishing BTR Units

1. Upfront Costs

   • Initial Investment: Furnishing a unit comes with upfront costs for purchasing quality furniture and appliances. However, this expense can be offset over time with higher rental income and shorter vacancy periods. Many BTR developers opt to furnish their properties through furniture rental services to reduce initial costs while still offering stylish, high-quality furniture.
   • Ongoing Maintenance: Furnished properties may require more upkeep and repair, particularly as furniture and appliances wear out over time. However, renting furniture can help alleviate this concern, as many rental services offer maintenance and replacement options.

2. Tenant Preferences

   • Personalisation Concerns: Some tenants, especially long-term renters, may prefer to bring their own furniture and personalise the space. However, this concern can often be addressed by offering partially furnished or flexible lease options that allow tenants to bring their own furniture while still providing essential pieces like beds and couches.

Conclusion: Is Furniture the Missing Amenity in BTR?

In the competitive world of Build-to-Rent (BTR) developments, furnishing your units could be the missing link that sets your property apart from others. With changing tenant expectations, particularly in urban areas, providing furnished units is no longer just a luxury—it’s a necessity for attracting a diverse group of tenants, from young professionals and expats to students and short-term renters.

Furnishing a BTR unit can result in higher rent, faster occupancy, and a more satisfied tenant base. While there are initial costs and some logistical challenges to consider, the long-term benefits make it an option worth exploring. Whether you choose to invest in quality furniture upfront or take advantage of furniture rental services, adding furniture could be the key to unlocking greater demand and profitability in the BTR market.