Welcome Home – Rent out right

What wonderful news to hear we were voted “Favorite Furniture Store in the Bay of Banderas.”  Thank you to everyone who voted, and to our many customers who we are honored to serve.  Furnishing a home in Mexico is not easy.  We are proud to offer the solution that makes it less stressful with furniture packages and an online store featuring quality manufacturers.  If you or someone you know is in the market for furniture, we are at your service!

Many people who purchase a home in Mexico do so with the intent to rent it out when they are not using it.  When we work with an owner who wants to furnish a rental property, we focus on delivering on two objectives.

The first is to help the owner get furniture that will be attractive to renters.  A well-furnished rental condo drives higher revenue.  It allows the owner to charge higher rental fees and achieve higher occupancy rates.  The second objective is to recommend furniture that will give the best return on their initial investment.

One common misperception held by new owners of rental properties is that buying low-cost furniture is the best approach.  Although the upfront cost is lower, buying cheaper furniture almost always equates to having to replace it within the year.  Low-cost furniture cannot withstand the harsh environment, nor rental wear and tear.

Why should you spend more than just the lowest possible amount?  Research shows that most vacation rental customers are looking for a luxurious holiday and are prepared to pay more.  They do not want a place to stay that looks average.  With close to 5400 VRBO rentals in the Bay of Banderas, you want your location to stand out.

Another reason to invest a little more upfront is to ensure you get furniture that will last.  Low-cost furniture is generally made from materials that do not stand up well to humidity, termites or wear and tear.  Replacing an item three or four times in two years will easily cost you more not just for its price but also for the time and hassle it takes for you to go out, find the item, handle delivery, set up, etc.  Remember that if you do not replace damaged items right away, today’s renters are quick to post negative reviews.

This is not to say that you need to go out and spend a king’s ransom.  A reasonable furniture budget for a two-bedroom, two-bathroom home in Mexico, with the type of furniture and décor that attracts renters and drives high occupancy, is about MXN 400,000 to $500,000 (about $20,000 to USD 25,000).  That includes everything from small items such as plates and spoons to large items such as the sofa or king bed.
The key to achieving the highest net revenue for your rental property comes down to buying reasonably-priced furniture and artfully pulling it all together so that it screams luxury!
Need help decorating your rental home in Mexico?  Contact me at sa.novak@solutionsmexico.com for assistance.

Sheryl Novak
Sheryl Novak is an expat Canadian who has owned a home in Mexico for over ten years. She is the owner of SOLutions Mexico – the online furniture store for your home in Mexico and The Furniture Store by SOLutions Mexico, a brick and mortar show store in Bucerias. She is considered the expert on sourcing all styles of furniture for all sizes of budgets, in Mexico.