To make your corporate property rentals stand out in today’s market, you’ll need to think creatively. If you want to attract high-quality clients, consider providing your tenants with upscale and comfortable furnishings. Furniture can set the tone for a rental space, and it’s a highly desirable perk among corporate renters. A stylishly furnished unit may rent faster and at a higher rate, and your renters will know that you take your responsibility as a landlord very seriously.
But how does the average property manager or landlord deal with the upfront cost of buying furniture? You may choose to price your rentals higher to recoup the expense quickly, but flexible funding options can help free up capital for other obligations. Here’s a quick guide to finding the financing you need to fill your rentals with high-quality items.
Retail Credit Cards
Buying most of your furnishings from a single store or vender comes with its advantages. You’ll be able to curate a cohesive style easily, and the stores may offer you a line of credit to finance your purchases.
Sometimes these stores offer worthwhile incentives or discounts when you first open an account (such as a percentage off or delayed interest), but the overall annual percentage rate (APR) for retail cards is much higher than other options. A retail card may be a solid deal if you know you’ll be able to pay off the items within the special financing terms window. If not, we recommend cautiously considering whether the convenience of buying at one location warrants the higher interest you’ll pay over time.
Business Credit Cards
Business credit cards offer more flexibility than retail cards, especially since you can use them at any retailer or online vendor. Use this advantage to shop around and get the best prices on furniture for your rental, with no worries that you’ll have to buy everything within an intro rate offer.
Interest rates on business credit cards vary, and some will have annual fees to pay. Read your terms carefully to understand how this flexible purchasing option can affect your business bottom line with interest and fees paid each year.
Small Business Loan
Finally, one of the most popular choices for furniture financing is a business loan. You can shop for the loan that fits your specific needs, whether it’s to acquire furniture or to help with additional expenses, such as paint or flooring. Business loans are an attractive funding tool for business owners who want to know what they’ll pay up front and need a single disbursement of funds to cover large purchases.
Since you’ll repay this loan using an installment plan, a business loan also qualifies as a different type of credit than retail or business credit cards. Small business loans can sometimes offer a more competitive overall rate than credit cards, and loan amounts may be larger than credit card limits offered by both retailers and major banks.
Furniture Funding Pro Tips
Research each option that’s available so you can grow your business while protecting your financial security. When it comes to buying the furniture, get creative to get the best deal. Look for gently used furniture or floor models. Furniture stores and warehouses are known to offer great deals on pieces that still look brand new. Considering that your furniture will get plenty of use over the life of a rental, give some thought to ways you can pay a little less for higher quality items that will provide your rental comfort and upscale appeal.
For your rental property to be a successful investment, you’ll need to invest in it as well. With a combination of wise financial choices and some deal-hunting, your furnished rental will hopefully bring you years of payoff.Linsey Knerl is a personal finance expert, author, public speaker and member of the ASJA. She writes for Upstart and has a passion for helping consumers and small business owners do more with their resources through awareness of the latest financial services.
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