FURNISHED APARTMENTS
What is the business model for a landlord here?
Are they assuming market demand for people to want to live in a place that is furnished? I personally wouldn't want to live in a place where previous people have used the furnishings. Companies like Related are jumping in the space etc.
Is moving into an apartment that has everything set-up for you (internet, cable, furniture, utilities) the future of multi-family for the next generation? thoughts on this investment thesis?
I don't have an investment thesis for you, but I do have a customer thesis for you.
Moving fucking sucks. A lot. It's expensive if you use movers, and a huge pain in the dick if you don't. Being able to move all your shit in a sedan is a huge value prop to renters, even if someone has maybe fucked on the couch before you moved in (I'd assume these companies are deep cleaning furniture, if not it gets a little sketch).
You can probably charge a few hundred more a month, so there's the investment thesis I guess.
There is a small - but growing - market for this. Travel nurses, tech workers, remote workers (which we will probably see more of), interns, medical residency, temporary teaching assignments. People that want to live in a city temporarily.
^This.
Any one who is familiar with coastal markets has seen this in one way or another. Summer time comes, and the Airbnb / Short Term Rental market takes off. During the year, from say Sept to May, these are sometimes put on 6-8 month leases to students, traveling nurses, etc. Those "off months" usually charge a rent slightly less than 12 month leases in the same area, but are furnished and tenants are booted so that they can go back to short term rentals during peak season.
I've also worked with a few investors who do 3-6 month furnished rentals as a full time strategy, which I think is more along the lines of what the OP is talking about. It can be a great business model if you have contacts within traveling nurses, military, or other groups with similar situations. There are some rental listing websites and property managers who specialize or frequently work with these types of tenants. It seems pretty labor intensive though, and I don't see it taking off with long term tenants that intend on staying in an area more than say 6 months. Personally I'm not going to pay much more than normal rent even if it's furnished, if I plan on staying in that area for at least a year.
TLDR ; I think this strategy is tailored to a particular sub market of renters and for that reason doubt it will ever take up a substantial portion of rental marketshare, but it definitely does have its place with groups whose occupation allows for or even encourages relocating often