If you're a real estate investor or property owner in the Pensacola, Florida area, you may be wondering whether to rent your investment property furnished or unfurnished. The right decision depends on your investment goals, target tenant, and the type of rental property you own.
Furnished rentals can be a great fit for short-term or mid-term tenants—such as traveling professionals, vacationers, or individuals relocating to the area temporarily. These tenants often look for fully furnished, move-in-ready homes and are willing to pay a premium for convenience. However, long-term renters typically prefer to furnish the property themselves, making unfurnished rentals the better option for long-term stability and lower maintenance costs.
At Realty Masters of FL, we typically recommend keeping your Pensacola long-term rental unfurnished, unless you have a unique property or specific need to include furniture. Let’s explore the pros and cons of furnished rentals so you can make the best decision for your investment.
Pros of Furnished Rentals
Furnished rentals offer the following benefits, especially for short-term or medium-term leases:
- Higher Rental Rates (in some cases): Furnished properties often command higher rent, especially for short-term or corporate leases.
- Attracts Niche Tenants: These rentals are ideal for vacationers, business travelers, or those in transitional life phases.
- Faster Move-In: Fully furnished homes offer a hotel-like convenience that appeals to tenants looking for immediate availability.
For Pensacola property owners interested in seasonal rentals or furnished mid-term leases, a well-furnished unit is necessary in a competitive short-term rental market.
Cons of Furnished Rentals
However, furnished rentals come with several downsides, especially for long-term leases:
- Higher Wear and Tear: Furniture, décor, and appliances experience more damage and need regular upkeep.
- Increased Costs: Frequent tenant turnover leads to higher cleaning and maintenance expenses.
- Smaller Tenant Pool: Long-term tenants often avoid furnished properties, reducing demand.
- Additional Insurance Needs: Most standard landlord policies don’t cover furniture damage or short-term rental risks. You’ll need specialized rental property insurance coverage.
- More Management Required: From furnishing decisions to replacements, managing a furnished property takes more time and effort.
For landlords managing properties in the Pensacola long-term rental market, these cons often outweigh the benefits—especially as most annual renters bring their own furnishings.
Short-Term Rentals in Pensacola: What to Know
Pensacola’s short-term rental (STR) market saw significant growth in recent years, but demand is softening. Increased competition, lower nightly rates, and rising vacancy levels have led many local investors to shift from vacation rentals to long-term rental strategies.
If you currently own a furnished STR in Pensacola, here are key considerations before transitioning to a long-term lease:
- π Secure Proper Insurance: Ensure your policy covers furniture, contents, and liability specific to STRs.
- π΅ Save Receipts: Keep documentation for all items left in the home to support deposit claims or insurance disputes.
- π Document Conditions: Conduct thorough move-in inspections and keep updated records.
- π Prepare to Replace Items: You may be legally responsible for maintaining or replacing furniture during the lease.
Transitioning from Furnished to Unfurnished
If you plan to convert your furnished Pensacola rental into an unfurnished, long-term rental, create a strategy for handling the existing furniture:
- Remove and store furniture before listing—unless you’re open to leaving it for the right tenant.
- Consider donating, selling, or storing items off-site.
- List the home as either furnished or unfurnished, with the flexibility to remove furnishings based on tenant preference.
Offering flexibility increases your chance of securing a quality long-term tenant while reducing vacancy time. Even in an unfurnished rental, there are a few essential items that should be provided to meet tenant expectations and local housing standards. These typically include major appliances such as a refrigerator, stove/oven, and often a dishwasher and microwave. Window coverings—like blinds or curtains—should be installed for privacy and convenience. While furniture isn’t included, providing these basic features ensures your property is competitive in the long-term Pensacola rental market.
Pensacola Property Management You Can Trust
π If you're transitioning a furnished rental into a long-term investment, Realty Masters of FL is here to help. While we do not manage furnished or short-term rentals, we specialize in long-term property management with a minimum lease term of 6 months—standard being 12 months—and we exclusively manage unfurnished rental homes. As Pensacola’s largest property management company, we serve property owners throughout Escambia and Santa Rosa Counties, managing everything from single-family homes to condos, townhomes, duplexes, and small apartment buildings.
Whether you need help with leasing, tenant screening, or full-service management, our experienced team is ready to support your goals. Reach out today to learn how our Pensacola property management services can help you increase returns and protect your investment.
