Furnished Rental Pricing: What to Charge and How to Calculate It

Answer

Intro: Pricing a furnished rental means more than adding furniture cost to the monthly rent. Landlords must weigh local market rates, lease length, included services, furniture amortization and added risks (wear, turnover, utilities). This answer shows practical steps and concrete ranges to help you set a competitive, profitable price.

Main part: Start with the base market rent for similar unfurnished units in your area. Furnished units typically command a premium depending on term:

• Long-term furnished (12+ months): expect roughly a 10–25% premium over unfurnished rent.
• Short-term / corporate housing: premiums often run 20–50% or more, plus nightly or weekly pricing complexity.

Next, add recurring costs you’ll cover: utilities, internet, regular cleaning, and higher insurance or maintenance. Allocate a furniture replacement reserve — a common method is to amortize the upfront furnishing cost over 3–7 years. For example, $6,000 in furniture amortized over 60 months equals $100/month added to rent. Also factor in a higher vacancy/turnover buffer (shorter leases increase turnover costs) and cleaning fees for move-outs or interim cleanings.

Practical checklist for final pricing:

• Survey competing furnished listings (MLS, short-term platforms, local corporate housing).
• Decide inclusion: utilities and cleaning in rent or billed separately.
• Set security deposit and a detailed inventory with photos to reduce disputes.
• Consider minimum lease lengths and seasonal adjustments.
• Build in a 5–10% margin for unexpected wear or faster replacement.

Final paragraph: A simple pricing formula: Final Rent = Base Unfurnished Rent × (1 + Furnished Premium %) + Utilities + Furniture Amortization + Turnover Reserve. Before finalizing, test the market with a listing and be prepared to adjust. Because tax treatment of furniture, deductibility and local rules vary, it’s advisable to consult a licensed tax advisor or attorney for specifics.