Landlord Question and Answer Forum

I advertised an unfurnished single family home for rent. We are completing the total renovation this week. I got a message asking if we would consider furnishing the house and including utilities for almost twice the posted rental price for a six month lease so the tenant could present one invoice to his employer. I always thought it was a bad idea to include utilities in the rental price. I am open to all thoughts and comments. The prospective tenant will be working locally on a contract basis.

Can you do the math on renting furniture for that period of time and what the utility cost might be so you can see if it makes financial sense?

Posted by Dawn A, WI on Wednesday, May 7, 2014

I only pay for the trash in my units. I would never add utilities in the rent, what if they go over by taking advantage of you. My advice is to NOT include rent or to furnish it, unless it's furnished with a stove, refrigerator and/or dishwasher it's not mandatory that you supply these amenities.

Posted by Monica S, CA on Thursday, May 8, 2014

I work for a construction company, also own quite a few properties that I rent out. I have a few that I include utilities. I have rented in the past to contractors that are required to locate near their jobsite for the duration of the project. Most go home on the weekends. As long as you properly advise that you do not allow roommates (unless leased that way). I have had more luck with this then some of my not included units. The only thing I will not do is furnish an apartment other than the stove/ refrig. As this can get expensive when any sort of damage occurs.

Posted by Mary Karen H, NJ on Sunday, May 11, 2014

You can include the utilities in the offered rent price and put a cap on the utility bills. For example you can state in the lease that any amount in excess of $75 for a monthly water bill will be the responsibility of the tenant and will not be paid by the landlord. Failure to pay the amount in excess of $75 will be a violation of the lease and grounds for eviction. Or you can include a fine.

Posted by Daryl J, DC on Wednesday, May 21, 2014

Thank you, Daryl J. That is the kind of information I was looking for. That makes a lot of sense. I have been playing around with numbers. I am coming up with a rule of thumb. I appears to me that if the potential tenant is looking for furnished and utilities included, you pretty much need to double the rent for it to make sense. Plus put a cap on the utility bills like you said.

Posted by Linda M, MD on Thursday, May 22, 2014

Good luck. If you go through with the lease you should consider contacting some of the temporary housing companies as they pay above market rate for short term leases and would probably give you a bit more with the house already furnished.

Posted by Daryl J, DC on Thursday, May 22, 2014