ROI for Pre-Furnished Units in Apartment Buildings
Any business decision comes down to the ROI (return on investment). So, when it comes to apartment complexes, is it really worth getting pre-furnished units for their residents. The answer in short is yes, but it also depends on a few factors such as lease length terms, corporate leases in the building and what area the building is in. However, in general, each building will get at least several requests for furnished units. These requests are increased when short term leases are offered, there are military bases or colleges near by, companies inquire about corporate leases and the list goes on.
How to get ROI for Pre-Furnished Apartments Units
- Keep in mind purpose – consider the purpose of furnishing units, and the money that will be made in return for it. Examples: guest suites, model rooms, military leases, student leases, and any type of corporate leases. Each of the listed items have a different ROI, but also have a different cost in renting. For example student and military may not need high quality items, which means the furniture is inexpensive and the cost built into the rent could make up for it (and then some). Corporate leases tend to need nicer furniture, however, that means the cost goes up for the resident as well (again, making up for the cost and gaining ROI). Guest suites and models tend to be middle of the line furniture, but both have an appeal to those touring units and may be the reason someone signs a lease with your building.
- Partner with a furniture rental company – Get the best deals on furniture by partnering with an affordable furniture rental company like Corporate Rentals. We help our clients out and find a way to make the partnership mutually beneficial, that way both parties receive ROI.
- How many potential residents inquire? – Do some market research to determine exactly what (if any) return your building could get by offering furnished units. A great start is to start paying attention to how many potential residents inquire about furniture (and how many go elsewhere if you do not offer it).
These three easy questions/steps can help to increase ROI by furnishing some of the units in an apartment complex ahead of time. To learn more about renting furniture, check out Corporate Rentals! We have quick, affordable and unmatched service when it comes to rental furniture and housewares in the Mid-Atlantic region.