Property Management Best Practices

What to Include in a Furnished Rental Agreement Addendum

Zac Maurais

A furnished rental agreement addendum is a document that protects both landlords and tenants when renting a furnished property. It specifies the furniture included, its condition, and care expectations. Here's what you need to know:

  • Why It’s Important:
    • Lists all furniture and appliances provided.
    • Sets rules for furniture care and maintenance.
    • Protects against disputes over damage or missing items.
    • Clarifies responsibilities for repairs, replacements, and costs.
  • Key Elements to Include:
    • Detailed inventory of furniture, appliances, and decor.
    • Documentation of each item's condition with photos and notes.
    • Guidelines for proper use, cleaning, and reporting damage.
    • Clear rules for handling normal wear vs. tenant-caused damage.
    • Move-out inspection process and deposit return procedures.
  • Benefits:
    • For Landlords: Safeguards furniture investments and provides legal support.
    • For Tenants: Protects against unfair charges and clarifies expectations.

Starting with a thorough inventory and clear care instructions ensures transparency and prevents disputes. Attach this addendum to your lease and move-in checklist for complete protection.

3 Vital Steps to Take When Leasing a Furnished Rental

Making a Property Inventory List

A property inventory list is a detailed record of all items provided in a property, along with their condition at the time of move-in.

List All Items

Go through the property room by room and document every furnished item. Be thorough and include:

  • Furniture: Beds, sofas, tables, chairs, storage units
  • Appliances: Refrigerator, stove, microwave, washer, dryer
  • Electronics: TV mounts, built-in speakers, smart home devices
  • Kitchenware: Pots, pans, dishes, silverware
  • Decor: Mirrors, artwork, curtains, rugs
  • Storage: Cabinets, shelves, closet organizers

Once you've listed all items, the next step is to assess and document their condition.

Record Item Conditions

For each item, use both visual and written methods to document its condition:

  • Photos: Take clear pictures from multiple angles. Capture any wear, labels, serial numbers, or existing damage.
  • Written Notes: Describe the item's brand, model, materials, and finishes. Highlight any damage like scratches, dents, or stains.
  • Additional Records: Include receipts, warranties, or estimates for replacement costs if available.

Finalizing the Inventory

Your completed inventory should include the following details:

  • Full names of everyone involved
  • Date the inventory was created
  • Name of the person conducting the inventory
  • Signatures from both the landlord and tenant
  • Initials on every page for added verification

This ensures all parties are on the same page and helps prevent disputes later.

Tenant Rules for Furniture Care

After listing the inventory, setting clear guidelines helps ensure the furniture stays in good condition.

Using Furniture Properly

Furniture should always be used as intended. Indoor furniture must remain inside the rental unit, and tenants should keep it at least 4 inches away from HVAC vents to avoid damage from direct airflow.

Cleaning Expectations

Tenants are expected to maintain furniture cleanliness beyond normal wear and tear. The rental agreement should clearly state cleaning requirements, emphasizing the importance of addressing spills, stains, or dirt promptly. This helps protect the furniture from damage and prevents issues like mold or mildew.

Moving Furniture Safely

When moving or rearranging furniture, tenants must handle it with care. The rental agreement should make it clear that tenants are responsible for any damage caused by improper handling. Any damage should be reported immediately to ensure it’s addressed before the final move-out inspection.

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Handling Furniture Damage

A furnished rental addendum should clearly outline how furniture damage is handled to avoid disputes and assign responsibilities.

What Counts as Normal Wear

Normal wear refers to the natural aging or deterioration of items through regular use, unlike damage caused by carelessness or misuse.

"Normal wear and tear is deterioration that is expected when a rental unit is used respectfully and as it was designed, such as gently worn carpets and faded walls. It does not include damage and destruction caused by abusive or negligent use, like ripped carpets and heavily stained walls." – Ashley Porter [2]

Here’s a simple comparison of wear versus damage for common furnishings:

Item Normal Wear Damage
Upholstered Furniture Light fading, minor worn spots Tears, stains, burns
Wood Furniture Slight surface scratches, minor finish wear Deep gouges, water rings, broken parts
Appliances Normal operational aging Broken controls, dents, missing parts

How to Report Damage

Tenants should follow these steps to report damage:

  • Written Notification: Provide a detailed description via email or the property management platform.
  • Photo Documentation: Attach clear photos showing the extent of the damage.
  • Prompt Reporting: Notify the landlord as soon as the damage is discovered.

Delays in reporting could result in tenants being held responsible for full replacement costs.

Who Pays for Repairs

The addendum should clearly state who is responsible for repair costs:

  • Landlords handle repairs for normal wear and tear.
  • Tenants are responsible for damage caused by misuse or neglect.
  • Security deposits may be used for repairs or replacements.
  • Missing items will be charged to the tenant.

"The easiest way to discern between wear and tear and tenant caused damage is to think of wear and tear as any damage that's caused by natural forces or damage that's caused by daily use. Tenant caused damage should be thought of as damage requiring more than routine maintenance to repair. This doesn't include things like a leaky pipe or things that would happen to the property regardless of who the tenant was." – Timothy Czekaj [3]

Landlords must provide written notice before deducting any amount from the security deposit. This notice should include an itemized list of repair costs, receipts, and supporting documentation of the damage.

Move-Out Rules for Furnished Units

Final Furniture Check

Schedule the move-out inspection within 24–48 hours after the tenant vacates, ensuring both parties are present to review the condition of the furniture [4].

During the inspection:

  • Compare the current condition of furniture with the original inventory and move-in photos.
  • Check for structural issues, surface damage, functionality of moving parts, and any stains or wear.
  • Take detailed photos of any damage or concerns, focusing on major pieces.

This process helps determine what repairs or replacements might be needed.

Fixing or Replacing Items

After the inspection, address any issues as soon as possible.

Pricing Guide:

  • Basic Repairs: $25–$40/hour
  • Specialty Repairs: $70–$100/hour
  • Kitchen Cabinet Repair: $150
  • Interior Door Replacement: $100
  • Window Blinds Replacement: $40 [5]

"This list has been prepared for your information only. Actual charges will vary."

Deposit Return Rules

Once repairs and replacements are assessed, follow clear deposit return procedures.

Key points to keep in mind:

  • Landlords must provide an itemized list of deductions for furniture repairs or replacements [6].
  • Tenants should receive a pre-move-out cleaning checklist to help avoid cleaning fee disputes [6].
  • Deductions should clearly separate normal wear from tenant-caused damage [7].

To ensure transparency, landlords should document all deductions with repair estimates, receipts for replacements or professional cleaning, photos of damage, and written explanations. This helps ensure a fair and clear deposit return process.

Conclusion: Creating Your Furnished Rental Addendum

A furnished rental addendum helps outline responsibilities and records the condition of items. It’s a key part of your lease agreement, offering protection for both landlords and tenants.

Key Elements to Include

Your addendum should cover the basics like the names of all parties, property address, lease dates, and the effective date [10]. Clearly title it as a "Furnished Rental Addendum" to avoid confusion with other documents. These details lay the foundation for more specific terms.

What to Document

Make sure to address the following:

  • Care instructions for specialty items (e.g., leather furniture care) [8]
  • Clear steps for handling and reporting any issues
  • A thorough inventory process for documenting furnishings

Tips for Using the Addendum

Attach the addendum to your Move In/Move Out Walk Through Checklist [1]. Ensure it meets all local landlord-tenant regulations [9]. Both parties should sign and date the document [10] to confirm their agreement.

Double-check that your addendum is legally compliant and properly signed to avoid future disputes.

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