Furnished vs. Unfurnished Rentals in San Diego: Which One Makes More Money?

The Great Furniture Debate: Show Me the Money!

The rental market in America's Finest City is booming, with average rents hitting $2,800 per month in 2025. But the million-dollar question remains: Should you offer that gorgeous property with or without furniture?

The Furnished Advantage: Cash In Now, Thank Me Later

Furnished rentals in San Diego typically command 15-20% higher monthly rents than their naked counterparts. That's not pocket change! A property that would rent for $3,000 unfurnished might fetch $3,600 furnished. Do the math over a year, and we're talking an extra $7,200 in your account.

Who's Hunting for Furnished Spots?

• Corporate relocations (San Diego hosts over 400 biotech companies alone)

• Military personnel (with over 110,000 military-connected individuals in the area)

• Medical professionals on temporary assignments

• Students from UCSD, San Diego State, and other institutions

• Short-term vacationers (San Diego welcomed 32.5 million visitors in 2024)

  
  

These tenants typically stay 3-12 months and value convenience over customization. They'll pay premium rates to avoid furniture shopping and moving headaches.

The Money Makers

Furnished properties shine brightest in these San Diego hotspots:

• Downtown/Gaslamp Quarter (young professionals love the vibrant atmosphere)

• Mission Valley (central location for business travelers)

• La Jolla (visiting professors and medical professionals)

• Beach communities (vacation and short-term rentals)

A fully furnished one-bedroom apartment in Little Italy can command $3,800 monthly, while the same space unfurnished might only reach $3,200.

The Unfurnished Path: Steady and Strong

Unfurnished rentals attract tenants planning to stay longer. The average tenancy for unfurnished properties in San Diego lasts 2.4 years, compared to just 6-9 months for furnished units.

Less turnover means more consistent income and fewer periods with zero cash flow. Plus, you'll avoid the upfront furniture investment of $7,000-$15,000 for a typical two-bedroom apartment.

The Hidden Profit Margins

With unfurnished rentals, you'll save on:

• Furniture replacement costs (approximately $2,000-$3,000 every 3-4 years)

• Damage repairs (furniture damage claims average $850 per turnover)

• Professional cleaning fees ($250-$400 per turnover)

• Property management markup (many charge an extra 2-3% for furnished properties)

Numbers Don't Lie: The Cold, Hard Cash Comparison

Let's take a look at some real numbers for a standard two-bedroom apartment in North Park:

Furnished Option:

• Monthly rent: $3,400

• Annual income: $40,800

• Initial furniture investment: $10,000

• Annual furniture maintenance: $1,200

• Higher insurance costs: $300/year

• Average vacancy between tenants: 2 weeks per turnover

• Typical tenant duration: 8 months

• Annual turnover costs: $3,600

• Net annual profit: $35,700 (after expenses)

Unfurnished Option:

• Monthly rent: $2,900

• Annual income: $34,800

• Furniture costs: $0

• Lower insurance costs: $0 additional

• Average vacancy between tenants: 3 weeks per turnover

• Typical tenant duration: 24 months

• Annual turnover costs: $1,200

• Net annual profit: $33,600 (after expenses)

The furnished option wins by about $2,100 annually. But remember, this doesn't account for the initial $10,000 furniture investment!

The Secret Sauce: Hybrid Models

Smart San Diego landlords are increasingly offering "furniture optional" rentals. This approach lets you:

• Charge a furniture premium of $300-$500 monthly

• Offer lease terms with and without furniture

• Appeal to both short and long-term renters

• Test what works best for your specific property

One Mission Beach property owner reported a 22% increase in total annual revenue after switching to this flexible model.

Tax Benefits: Uncle Sam's Opinion

Furnished rental owners enjoy some sweet tax advantages:

• Furniture depreciation (deduct the cost over 5-7 years)

• Immediate write-offs for replacements and repairs

• Higher overall expense deductions

These benefits can reduce your taxable rental income by an additional 10-15% compared to unfurnished properties.

The Final Verdict

For maximum profit in San Diego's rental market:

• Go furnished if: Your property sits in a touristy area, near universities, hospitals, or downtown business districts. Or if you don't mind more active management and higher turnover.

• Stay unfurnished if: You value stability, lower maintenance, and simpler property management. Or if your property is in a family-oriented neighborhood where long-term tenants are common.

The difference in profit potential? Typically 8-12% higher for furnished properties in the right locations, but with significantly more work and upfront investment.

Your Property Partner: Priority One Real Estate

Not sure which option fits your property and financial goals? Priority One Real Estate specializes in maximizing San Diego rental returns. Our team of local experts can:

• Analyze your specific property's profit potential

• Recommend the optimal furnished/unfurnished strategy

• Handle all aspects of property management

• Market your rental to the ideal tenant pool

Visit Priority One Real Estate or call us at (858) 877-3029. Our data-driven approach helps landlords boost rental income by an average of 14% within the first year.

Regardless of the choice you make, having the right property management partner makes all the difference.