Moving to an apartment is filled with many initial expenditures. The cost of security deposits, your first month’s rent, and utility set-up fees will add up fast. Next comes purchasing furniture for your new home.
Purchasing a bed, couch, dining table, etc., along with all the other basic kitchen necessities, could empty your bank account in one night. Continue reading below to gain more insights on how a fully furnished apartment allows you to redirect those funds into enjoying your new location.
What Counts as Initial Moving Costs?
First-time renters may be unaware of all the extra charges and costs when renting an apartment. It isn’t just paying for your apartment. The costs include a lot of other things that will add up very quickly as well. There is the security deposit, usually the same amount as one month’s rent, and the first month’s rent.
Then there are application fees, utility start-up fees, and rental trucks/moving companies. However, it is usually the cost of furniture that people find most shocking.
Here are some examples of typical upfront costs:
- The security deposit and the first month’s rent
- A rental truck or hiring professionals to help you with the move
- Setting up utilities and paying deposits on those services
- Furniture such as beds, sofas, tables, and chairs
- Other items for kitchen use, towels, and linens
It doesn’t take long at all for these initial costs to add up to thousands of dollars. Furnished apartments eliminate a large part of this expense.
Cost Comparison: Furnishing from Scratch vs Renting Furnished
Image Alt Text: Interior of modern studio apartment with sofa in living zone
Let’s look at the actual costs of furnishing an apartment from scratch and compare them with the cost of paying a monthly premium for a fully furnished apartment. We’ll go through some estimates below.
The Upfront Cost of Furnishing from Scratch
Your new home is bare. This means you have to buy all of your furniture and most household items. For example, Bed. Sofa. Dining Table. Kitchen Essentials (plates, pots, etc.) Linens. Basic Decor. The cost for furnishing a single-bedroom apartment with basic quality furnishings is approximately $4,000 – $8,000. If you purchase higher-quality furnishings, the cost will be between $8,000 – $17,000.
Here is a general estimate of what you may expect to pay:
- Bed Frame & Mattress = $700 – $2,000
- Sofa = $400 – $1,500
- Dining Table & Chairs = $200 – $1,000
- Basic Kitchen Items & Linens = $300 – $800
- Delivery and Assembly Fees = $100 – $350
You will likely need to pay these costs in addition to your security deposit and/or your first month’s rent. In total, you could expect to spend as much as or over $6,000 to $10,000 on your moving costs.
Working with an experienced property management team in Austin Texas can provide insights about the benefits of rentals ready for occupancy. This can help you better budget and prepare for the move.
The Monthly Premium for a Furnished Apartment
Furnished units generally cost more per month than comparable unfurnished units. The difference in rent will vary by city and the quality of the unit, but you can expect to pay 15%-30% more for furnishings. In cities like Austin, that extra cost will be between $150.00 & $300.00 per month.
For example, if an unfurnished one-bedroom apartment rents for $1,500.00 per month, then a furnished version of the same apartment might rent for $1,725.00 to $1,950.00 per month. Over the term of a 12-month lease, that is an additional $2,700.00 to $5,400.00
Which Option Actually Saves You Money?
This depends entirely on how long you plan to stay.
| Timeframe | Furnishing from Scratch | Renting Furnished |
| Upfront cost | $4,000 – $8,000 (one-time) | $0 (furniture included) |
| Monthly rent premium | $0 (base rent only) | $150 – $300 extra |
| 1-year total | Lower monthly rent + $4,000–8,000 upfront | Higher monthly rent + no upfront furniture cost |
| 2-year total | Unfurnished becomes cheaper | Furnished premium adds up |
Furnished apartments are normally the best option when you’re going to be living at that place for one year or less. This way, you don’t spend all that money on furniture and then sell it or move it again. When looking into renting in Austin, working with experienced property managers can give you insight into the pros and cons of fully furnished units.
However, if you will be staying in the same location for 2+ years, purchasing furnishings yourself and making the furnishing arrangements yourself can be more comfortable and financially sound. Although the rent may seem like a small difference (as little as $25-$50/month), the total additional amount paid over time could exceed the cost of purchasing a few basic pieces of furniture.
Conclusion
A furnished apartment will save you money when it comes to the initial cost of all the pieces of furniture that are required to furnish an apartment. Also, by choosing a fully furnished apartment, you can allocate your savings toward exploring your new city. The logic behind this is apparent.
However, if you have planned on staying at one location for more than two years, then purchasing your own furniture would likely be a better option. It is best to weigh out the pros/cons based on the time frame you will be occupying the property.
