What should a furnished rental lease include?

Everything in an ordinary lease, plus a signed inventory of the furniture and household items with their condition, photos, rules on moving or storing items, who repairs or replaces what, and how wear and tear on furniture is handled at move-out.

Can a landlord charge a bigger deposit for a furnished rental?

It depends on the state. Some states set a higher cap for furnished units. California no longer does: since July 1, 2024, its cap is one month's rent for furnished and unfurnished units alike, with a two-month cap for certain small landlords.

Does renters insurance cover the landlord's furniture?

Generally no. A tenant's renters policy covers the tenant's own belongings and their liability. The landlord's furniture is covered, if at all, under the landlord's policy. Landlords should confirm their policy covers contents in a furnished rental.

Renting out a furnished home: what the lease needs to say

A furnished rental comes with dishes, a bed, a sofa, and a dozen ways for a move-out to turn into an argument. Most of those arguments trace back to one missing page: a signed list of what was in the unit and what shape it was in.

The inventory is the most important page

List every item that comes with the unit: furniture, appliances, kitchenware, linens, electronics, and decor. Note the condition of each, take dated photos, and have both sides sign it as an attachment to the lease. At move-out you compare against it. Without it, every scratch is your word against theirs. See what to document at move-in.

Wear and tear on furniture

Furniture wears out. Faded upholstery, a sagging mattress after years of use, and minor scuffs are normal wear and tear and generally can't come out of the deposit. A torn cushion, a burn, a broken frame, or pet damage beyond normal use can. Writing the age of major items on the inventory helps everyone judge what's reasonable. See wear and tear versus damage.

Create a Lease ($7.99) Wear and Tear vs Damage

Repairs and replacements

Who fixes a broken appliance or replaces a worn item, and how quickly.
Whether the tenant may move items into storage or bring their own furniture.
How to report damage during the tenancy, so it isn't a surprise at move-out.

Deposits

State deposit limits generally apply to furnished units. Some states set a higher cap for furnished housing, but not all. California used to allow three months for furnished units; since July 1, 2024, its limit is one month's rent whether or not the unit is furnished, with a two-month limit for certain small landlords. Check your state before setting the amount. See deposit limits by state.

Insurance

A tenant's renters insurance covers the tenant's own belongings and liability, not the landlord's sofa. Landlords should confirm their own policy covers contents in a furnished rental. See renters insurance.

Short stays

Many furnished rentals are mid-term stays of one to a few months. Those still need a written lease with the inventory, and local short-term rental rules may apply to very short stays. See short-term rentals and month-to-month vs fixed-term.

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