A guest article by Daniel Ishikawa, Managing Director of FLC Furniture GmbH Co KG, a leading provider of furniture leasing solutions based in Frankfurt am Main.
I have moved many times in my life. Very often. After the tenth time, only with professional help - for the sake of my back and to spare my nerves. I was always faced with the question of what was more economical, more ecological and simply more practical: carting old furniture across Europe or buying new at the next place of residence. Now there is a simple answer: furniture leasing. ... and of course serviced apartments. Both can also be wonderfully combined.
Leasing instead of buying
Moving furniture or buying new furniture in the new place - both have advantages and disadvantages. I wish I had had the option back then to simply rent furniture temporarily, because rental furniture has many advantages, even when I move into a flat that is already furnished. Today, we supply rental furniture for private use and also for business customers: This is not only true if you want to rent furniture for your newly furnished office. A student dormitory or apartment building can also be furnished with rental furniture or the existing furnishings can be individually supplemented for the individual guest. When we say "rental furniture", we mean much more than the furniture itself: Thanks to our all-round carefree service, you really don't have to worry about anything - from cooking pots to cutlery, bed linen, washing machine and towels to shower curtains, you'll find everything in our range.
Leasing for investors - 10 good reasons
Whether for private individuals or business people, investors or property management companies - rental furniture is not only trendy, it is an answer to the needs of our modern society. We summarise the top 10 advantages of rental furniture for you. But before we can do that, it is important to understand how much rental furniture is an expression of the zeitgeist in order to fully explore its value for investors and operators.
For those in a hurry, here are the key points in advance:
1. easy on the balance sheet
2. tax advantages
3. property attractiveness
4. expanded clientele
5. consistent quality
7. professional maintenance
8. all-in service
10. forward-looking concepts
Social change and furnished living
The way we think about living and working has changed a lot in the last two decades. Everyone knows the two big paradigm shifts: globalisation and digitalisation. But other factors such as ever-increasing life expectancy, climate change or shared economies have also contributed to far-reaching change.
Not everything was better in the past
Rental furniture is a modern phenomenon. For a long time, so-called expatriates - people who live abroad for a limited time - were the social exception. Whether for private or professional reasons, they were mostly individual private individuals. Transferring company employees at short notice was an exception.
Buying is expensive, time-consuming, wasteful
Traditional options were economically and ecologically resource-intensive, because furnished housing was rare and mostly offered by private individuals. This has changed drastically. Professional flexibility has long been a must. As a result, the demand for staff apartments has increased enormously. Serviced apartments are the trend. But beware: anyone who believes that temporary housing is only of concern to companies or is a flash in the pan is not only mistaken, but is also giving away valuable entrepreneurial potential.
Zeitgeist, not a short-lived trend
Whether in Berlin for the summer or London for three months on business, globalisation and digitalisation have made international mobility a mass phenomenon. This is not a fad, but the zeitgeist. Especially among millennials, the demand for simple, flexible solutions for temporary living or co-working spaces has increased immensely, and so has the need for leasing furniture.
This will become even more pronounced with Generation Z. To put it bluntly: people will live in micro-apartments with rental furniture "on demand", as studies now confirm. Because a house for life or a removal van full of furniture does not fit in with a life that is characterised by a constant "on-the-move" state. The younger generation in particular is concerned with experiences, not things. Especially not to throw them away. And let's not forget this ecological aspect: they are concerned with sustainability and environmentally friendly living, and that is what leasing furniture offers.
Rental furniture is a perfect match for serviced apartments. Both offer answers to an increasingly mobile culture. But spatial mobility is only the tip of the iceberg. The social relevance and entrepreneurial potential of rental furniture are far from exhausted. Serviced apartments are more than temporary living, because their service combines the freedom of flexibility with a time factor. This idea is also the focus of FLC - Furniture Leasing Corporation. Their all-in service includes everything from delivery to set-up to pick-up, including an interior design concept if desired. You don't have to take care of anything yourself, leaving more time and energy for the essentials: Concepts such as co-living emphasise the quality of life, social aspects of life come to the fore again. Rental furniture solutions as well as serviced flats make this possible.
Shared spaces and co-working
It stands to reason that rental furniture is also an ideal solution for other modern forms of living and working together. Shared spaces or co-working demand a high degree of flexibility. The living or working space should easily adapt to changing needs, whether through mobile partition walls or the exchange of furniture. And only leasing, not buying, offers this flexibility.
All-rounder rental furniture
No matter what the industry-relevant buzzword - "furniture on demand", "mix and match" or shared spaces, no matter whether business flats, student or senior residences: rental furniture is an all-rounder in the field of temporary living. Furniture on Demand offers flexibility for everyone and at the same time stands for individual adaptability. It satisfies high qualitative and aesthetic demands and offers immense entrepreneurial advantages.
But is it worthwhile for an investor to have a property completely furnished with rental furniture, lamps and electrical appliances? The short answer is: Yes ... where to start? And this brings me to the main advantages of rental furniture for operators, investors or property managers. These are easily listed.
The top 10 reasons for investors, operators and property managers
1. the balance sheet is correct:
Renting instead of buying preserves equity, calculable monthly instalments minimise risks and you are literally not left with broken furniture.
2 Tax advantages
The monthly instalments can be written off immediately instead of taking years as with purchased inventory.
3. your properties become more attractive
The upscale quality of the furnishings, their aesthetic added value and increased functionality satisfy demanding customer wishes.
4. more customers through flexibility
You expand the circle of your customers by not having to commit to one clientele. The increased flexibility enables direct adaptation to customer wishes, in short: if the clientele changes, the interior design changes.
5 Consistent quality
The flexible exchange of furnishings ensures consistent quality.
Easy exchange of rental furniture and a purchase option at the end of the term gives you the flexibility to respond to changes.
7. professional maintenance
DGUV regulations must be observed for electrical items, which must be professionally maintained and regularly inspected. This service is included with rented electrical equipment.
8. all-in service
FLC - Furniture Leasing Corporation is your partner for all-in solutions. We offer an all-in service that combines professional know-how with competent advice and business acumen.
Recycling and re-use are the keys to environmentally conscious living.
Rental furniture remains: it is closely linked to the needs of our modern society. They offer flexibility, support mobility and stand for sustainability.
The bottom line
Finally, one thing is certain: the majority of the customer base will be made up of Millennials and Generation Z in the medium term. If you count on these new generations, you have to reckon with their demands. Those who invest in temporary living and work with flexible furnishing concepts can only win.