Are You a New Landlord? Avoid These Pitfalls!

The rental market may not be as scorching hot as it was six months ago, but there are certainly no signs of it cooling down completely. Therefore, it's no surprise that the real estate market has welcomed newcomers who are dealing with furnishing their first rental apartment and finding tenants. But what could a new landlord learn from the experience of others, and what furnishing mistakes should be avoided?

Financial gain at the expense of quality

There's no way around quality. Looking purely at the numbers, there may be a temptation to purchase lower-quality solutions for a rental apartment, hoping to keep the investment lower. In theory, this is indeed the right and clear approach. But only in theory. In real life, an apartment built with poor materials and poorly furnished means that the type of people interested in renting the apartment changes. Poor quality also means more frequent repair or replacement needs.

However, quality no longer equals a high price. New technologies, expanded production, and a growing market have brought the price of quality items significantly lower for consumers. For example, there are perfectly decent yet still affordable beds. Sometimes you just need to look around a bit more and not go with the first offer.

Ignoring the existence of target groups

Another common mistake is trying to reach absolutely everyone looking for a home in the rental market at the same time. But when you compare the preferences and needs of different groups of people, you'll notice quite significant differences fairly quickly. For students, the most important factor is often the price, but at the same time, they usually don't have their own furniture to bring and use. Tenants with higher salaries can certainly pay higher rent, but at the same time, they also expect more.

Again, an example from bedroom furnishing. A target group that can afford higher rental prices is usually not interested in a combined living room and bedroom solution. But students wouldn't say no if affordable VidaXL sofas in the living room work well as a bed or for hosting guests.

Treating a rental home as your own home

There's no need to spend time, energy, or money creating your dream home. After all, it's ultimately a rental apartment for someone else. Very eclectic interior design can actually drive away a potential tenant! A simpler choice is a safer choice, and the tenant appreciates having space and the opportunity to make the rental home more comfortable for themselves. This means more neutral tones, especially on large surfaces. This way, the tenant has the opportunity to play with details and colors.

Of course, there is definitely a place for rental spaces where everything is available: from towels and bed linens to matching dishes. This is certainly expected from the short-term rental world, where people really come on vacation and no one is going to bring pots and pans for a week or two of vacation. Other fully furnished apartments are often sought after by top specialists who move around for work and similarly don't want to spend time furnishing an apartment or house.

Inflexible approach

Regardless of what furniture you purchase and place in the apartment, are you willing to move it? Or let's be honest, remove it? Suppose you've found the ideal tenant, but they already have their own comfortable sofa, which they want to bring to the rental apartment. Are you willing to move out the existing sofa and do you even have a place to temporarily put it? Or will you give up a great tenant because of one sofa?

In Estonia, it has become customary that a rental apartment includes kitchen appliances and kitchen furniture, and a washing machine in the bathroom. Everything else depends. In rental photos, it's very good to use furniture to show the apartment's coziness and possibilities, but not all tenants want the same furniture. Before you start purchasing full furnishings, also think about where you plan to store furniture that the tenant doesn't want to use.