Furnished vs. Unfurnished Rental Leases: Must-Have Clauses

Furnished vs Unfurnished Rental Leases: Must-Have Clauses

Landlords who rent a furnished unit need a customized lease agreement that includes additional provisions, terms, and documentation for furnishings. This is key for protecting both parties, reducing the risk of damage, and complying with security deposit provisions. 

In this article, we explain some key terms that landlords need to include in furnished rental lease agreements and some key distinctions for furnished vs unfurnished rental lease agreements. 

Need a state-specific lease customized to your rental property needs? Visit ezLandlordForms to customize a furnished or unfurnished lease agreement that sets you and your tenants up for success. 

What Clause Should Every Unfurnished Rental Lease Include?

The lease agreement for unfurnished rental agreements needs to comply with all state-specific rules and lease laws. This means including all terms, clauses, and disclosures required by the laws of the state where your rental is located. 

It also should include the basic terms of the rental relationship, including the rent amount, lease period, late fees, security deposit amount, maintenance responsibilities, and renewal terms. 

As you create a lease, keep in mind that the more detail you provide, the better. Covering terms like pest control, snow removal, yard maintenance, guest policies, and pet policies will help to avoid confusion and minimize the risk of landlord-tenant disputes. 

What Clauses Should Every Furnished Rental Lease Include? 

Furnished rental lease agreements need to include all the terms included in an unfurnished lease agreement; however, they also need additional provisions to cover the furniture and personal property left in the unit. 

For furnished rentals, landlords should include: 

• Furnished Rental Unit Addendum: This provides specifics about furnishings left in the rental unit and documents the condition of all furnishings at move-in. 
• Move-In/Move-Out Walkthrough Checklist: This is always necessary when a security deposit is collected, but it’s particularly important with furnished units. Include pictures and have the tenant participate in the move-in inspection. 
• Provisions regarding removing or moving furnishings: Include rental lease clauses with specific instructions about whether a tenant can move furnishings, rearrange furniture, or move furnishings out of the property. 
• Repair and replacement provisions: Provide clear language about how repair or replacement costs will be calculated and assessed. Explain who is responsible for damages and what steps a tenant should take when damage occurs. 
• Maintenance provisions: Explain landlord and tenant responsibilities, who is responsible when something breaks, and how a tenant should request maintenance or repairs. 
• Cleaning responsibilities: If tenants have specific cleaning responsibilities – for example, cleaning upholstered furniture, mattresses, or linens – include detailed instructions in the lease package. 
• Utilities and services provisions: Many furnished units include utilities, internet, and other services. List all services provided, including usage limits, and any applicable charges for excess use. 
• Renters insurance requirements: Explain that the landlord’s insurance does not cover furnishings, and tenants are responsible for any damage beyond normal wear and tear. Encourage tenants to purchase renters’ insurance to mitigate the risk of damage. 
• Subletting provisions: Rental arbitrage, the practice of a tenant renting out units for short periods on sites like Airbnb or VRBO, is increasingly common, especially with furnished units. If you don’t want to see your unit on a short-term rental site, include a clause prohibiting subletting.

How Do Furnished vs Unfurnished Rental Agreements Differ? 

While the main terms of a furnished vs unfurnished rental agreement are the same, there are some important differences between the two rental contracts. 

The most important differences between a furnished vs unfurnished rental agreement include: 

• Inventory  and condition checklist 
• Detailed damage clauses
• Detailed maintenance responsibilities 
• Cleaning expectations and instructions 

FAQs About Furnished vs Unfurnished Rentals 

Should landlords collect a larger security deposit for furnished rentals? 

It’s a common practice for landlords to collect a larger security deposit for furnished rental units. When there is more landlord-owned property in a unit, there’s an increased risk of damage. Landlords can mitigate this risk by collecting a larger security deposit. 

For example, some landlords require a security deposit of one month’s rent for unfurnished rental units and two months’ rent for furnished units. 

Always check your local and state laws before setting security deposit requirements. Some states limit the security deposit to one month’s rent for both furnished and unfurnished units. 

How are maintenance responsibilities different in furnished vs unfurnished rentals? 

In most cases, furnished rental units are more expensive to maintain than unfurnished units. When landlords are responsible for maintaining, repairing, and replacing furniture, appliances, housewares, and electronics, it leads to increased maintenance demands. 

The lease should outline maintenance responsibilities, clearly state who is responsible for dealing with what, and how tenants should report damage. 

Does my furnished rental need an inventory and condition checklist? 

While state lease laws do not usually require an inventory list for furnished units, it’s best practice to include one. A detailed inventory, listing all property left in the unit, the location it was left, and its condition at move-in, protects your rental and avoids disputes. 

Customize the Lease Agreement You Need 

Even if you’re still deciding between a furnished vs unfurnished rental unit, ezLandlordForms can help. Customize a state-specific lease agreement to meet your rental’s unique needs. You can attach a Furnished Rental Unit Addendum and Move-In/Move-Out Walkthrough Checklist for added protection. 

Follow basic prompts to create the lease agreement you need in minutes. Our leases are guaranteed to comply with your state’s lease laws and include unlimited access to our electronic signing tool, ezSign. Create a free account now to get started.