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Legal and Financial Considerations When Offering Furnished Rental Properties
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Vanshika Chandnani May 10, 2025
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Let's start with a little story of Neha:

A house that sits empty doesn't earn. But a home that's furnished and rental-ready? That's a goldmine.

I learnt this the hard way.

When I first rented out my Bangalore flat, I handed it off bare. There was no furniture, lights, or curtains just a clean floor and whitewashed walls. It sat on the rental market for 2.5 months. I dropped the rent, still nothing. Meanwhile, I paid maintenance, water, and other bills while earning zilch.

Then I did what many property owners are doing today I furnished my apartment for rent. I added a sofa set, bed, fridge, washing machine, and potted plants. Guess what?

It was occupied for 9 days.

I earned 30% more rent.

No bargaining. No nonsense.


Furnishing your rental property can be a game-changer. But before you do, you must make important legal and financial decisions.

If you're a homeowner with an empty flat or plan to turn your property into a fully furnished rental in Bangalore, here's what you need to know, human to human.


What Exactly Is a "Furnished" Property?

Today's tenants want convenience. Most don't want the hassle of buying beds or dragging their fridge across the city.


A fully furnished home for rent should ideally have the following:

  • A proper bed with a mattress

  • Sofa, coffee table

  • Dining table

  • Wardrobe

  • Fridge, washing machine

  • Curtains, lights, and fans

  • Geysers

  • Basic kitchen setup


If you throw in a smart TV, Wi-Fi, or even some artwork, you're in premium territory.

But this also means you're renting out your stuff. That brings us to the legal side of things.


Legal Considerations When Renting a Furnished Apartment


1. Create a Bulletproof Rental Agreement

A legal agreement for a furnished rental isn't just a one-pager downloaded from Google. You're not just renting out space; you're also handing over your belongings.

Your rental agreement should include:

  • Detailed inventory list (include brand and condition of each item)

  • Photos of furniture and appliances

  • A clause about normal wear-and-tear vs. intentional damage

  • Security deposit terms for furniture

  • Rules around shifting/removing furniture

  • Maintenance responsibility

Tip: Add a section stating that all furniture belongs to the owner and is not to be removed or sold by the tenant.


2. Adjust the Security Deposit

Here's the deal, furnishings are a serious investment.

In Bangalore, a security deposit is the norm for 2-3 months' rent. For furnished flats, it's fair to ask for more especially if you've added costly appliances or premium furniture.

Spell out that damages to furniture or appliances will be deducted from the deposit.


3. Add Clear Repair and Maintenance Clauses

This is where a lot of owners get caught up.

Let's say the microwave stops working in month two. Who fixes it? You? The tenant?

Here's a common approach used in many furnished rentals in Bangalore:

  • The owner handles major breakdowns (the washing machine is not working, the geyser is leaking, etc.).

  • The tenant handles minor daily issues (changing bulbs, cleaning, basic upkeep)

  • A set time for repairs preferably within 72 hours

The agreement should leave no space for assumptions.


4. Don't Forget Home Insurance

Most homeowners in India overlook this. But it's smart to get home content insurance when your house contains Rs. 3–4 lakhs worth of furniture and appliances.

Look for policies that cover:

  • Fire, theft, water damage

  • Damage from tenant misuse or accidents

  • Liability protection if an appliance causes harm

It's a small annual cost but a considerable peace of mind.


5. Register the Agreement Properly

Even if your rental term is 11 months, registering your furnished rental agreement gives you legal backing in case of disputes.

Make sure your documentation is in order:

  • Owner ID proof and PAN

  • Property tax and electricity bill

  • Khata or sale deed copy (in Bangalore)

If you're using a property management company in Bangalore, they'll usually help.


Financial Considerations: The Real Money Talk

Now, let's talk ROI. Ultimately, this is about making more rental income, and furnished homes almost always do better.

1. Charge Higher Rent

Furnishing can bump your rental income by 20–40% sometimes more.

Let's say a 2BHK in Koramangala earns ₹25,000 unfurnished. A well-furnished one in the same building could easily get ₹32,000–₹35,000.

That means you recover your furnishing cost in less than a year.


2. Quicker Occupancy = More Earnings

Every month, your flat sits vacant, and you lose money.

Furnished homes rent faster within 1–2 weeks, compared to 1–2 months for unfurnished homes.

That's because today's tenants—especially young professionals and working couples don't want to spend lakhs on furniture for a one-year lease. They want to move in with bags and laptops.


3. Better Quality Tenants

This is something you don't see in numbers but feel in experience.

Tenants who opt for fully furnished rental homes usually:

  • Have stable jobs

  • Are more responsible

  • Keep the house neat (because it's not empty)

And the best part? They stay longer.


4. You Get Tax Benefits Too

If you declare your rental income, you get:

  • 30% standard deduction on rent

  • Ability to deduct maintenance and furnishing expenses

  • In some cases, you can even claim depreciation on appliances and furniture

Talk to a CA about how you can save more.


But What If You Don't Want To Deal With It All?

Let's be honest, furnishing a house, creating listings, handling viewings, managing tenants, and fixing geysers at 10 PM is not everyone's cup of chai.

That's where Guarented Homes come in.

We help property owners turn their empty flats into high-rental, low-stress furnished homes without charging a single rupee for property management.


Here's how we do it 👇

  1. Agreement Signing

We start with a simple MOU between you and us. There are no hidden fees. No fine print.

You permit us to manage your property.

We take over and make it profitable.


  1. Furnishing Within 5-7 Days

Once we get access, we will fully furnish your apartment with the following:

  • Beds, sofa, wardrobes

  • Dining table, fridge, washing machine

  • Curtains, decor, etc

It's done within a week. And ready for move-in.


  1. Professional Photography & Listings

We take high-quality photos and list your flat on top platforms like:

  • NoBroker

  • MagicBricks

  • 99acres

  • And others

We write compelling descriptions that attract the right tenants.


  1. Tenant Management

We:

  • Showcase the flat

  • Handle tenant screening

  • Prepare and sign agreements

  • Collect rent on your behalf

  • Manage tenant complaints

You stay in the loop but never in the chaos.


Quick Repairs & Maintenance

From plumbing to electric issues, we handle service requests within 72 hours.

No midnight calls. No stress. You focus on your life; we run your rental like a business.


Post-Tenancy Repairs

When tenants move out, we:

  • Clean and repair the flat

  • Refresh the furnishings

  • Ensure it's ready for the next round

So your asset stays in excellent condition.


Final Thoughts: Furnished Is the Future

Furnished homes are in hot demand in a city like Bangalore, where people often move for jobs.

You earn more. You rent faster. You attract better tenants.

But yes, it comes with responsibility, legal paperwork, maintenance, coordination. That's why hundreds of homeowners choose Guarented Homes.

We help you:

  • Furnish your property

  • Find and manage tenants

  • Increase your rental income

  • Avoid broker headaches

And we do it at zero cost to you.

So, if you're wondering how to rent out a furnished home in Bangalore without the headaches, talk to us.

We'll turn your empty flat into a high-income asset.

All you need to do is hand over the keys.


FAQs

Q1. Can I earn more rent from a furnished apartment?

Yes. Most furnished properties earn 20–40% more rent, especially in metro cities where convenience is valued.


Q2. What if the tenant damages the furniture?

We added a detailed inventory to the rental agreement. Any damage is deducted from the security deposit.


Q3. Does Guarented Homes charge for property management?

No. Our property management services are free. We only earn when your home is rented.


Q4. How fast can you furnish my apartment?

We typically furnish homes within 5–7 working days from the possession date.


Q5. Do I need to handle tenant issues myself?

Not at all. Guarented handles all tenant management, rent collection, and service requests. You get monthly updates.


Q6. Is this service only for Bangalore?

Yes. As of now, Guarented Homes is exclusively available in Bangalore.


Want to start earning from your vacant home without lifting a finger?

Let Guarented Homes turn your flat into a fully furnished, high-rental property—at zero cost.

Your property. Our expertise. Maximum rental income.


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