Rent Furnished or Unfurnished in New Orleans?

Short of a permanent move, travelers who temporarily relocate to a new city must decide whether to rent furnished or unfurnished properties.  The decision obviously favors furnished rentals for any stay under six months but what about nine months, a year or longer?  Lets find out which approach saves more money for those longer work assignments.

First, we have to consider average market rents, utilities and the cost to furnish.  According to my recent market update, unfurnished rentals are roughly half the cost of furnished rentals in the New Orleans metro area.  The average rent of a one bedroom unit in this study is $850 per month.  The average furnished one bedroom unit is $1770 per month after omitting three high-end outliers.

Next, we have to figure out the average cost of utilities.  Entergy LA provides a sample bill on their site showing how usage fees are assessed.  The sample is based on 1000kwh used and the bill was $100 after surcharges and fees.  I reviewed year end usage for one Geneva House rental and it pegged the sample, coming in at $105 per month.  I think $100 per month averaged over the year is a fair estimate.

Water bills typically include trash or sanitation services.  They are billed every other month in the New Orleans market.  The monthly average for our unit was $38.50.  Very Straightforward.  The Geneva House does not have gas but it should be considered an extra expense if installed.

Cable and internet can easily be misquoted because of promotions and incentives for new accounts.  DirecTV offers several cable/internet bundles ranging from $79-$154 per month but the fine print indicates a two year commitment.  It is possible to forego cable costs and rely solely on streaming subscriptions like Netflix and Hulu for entertainment.  That option necessitates a better/faster data plan or contracting with an internet service provider.  Having strong, fast internet is a necessity more than a luxury for business travelers.  A reasonable estimate for TV and internet would be $80 per month considering a budget package or internet and subscription services combined.

Fortunately, Cort furniture appears to be fairly transparent with lease prices on their website.  They offer multiple packages or a la cart selections.  The most basic packages start at $320 per month for a one bedroom unit.  The starter packages include: sofa, coffee table and lamp for Living Room, Bed chest, nightstand and lamp for Bedroom plus a table and two chairs for the Dining room.  This would be the minimum of appointments leaving a rather spartan feel short of decor and warmth.  Lets add a modest $320 for furnishings and determine what accessories are needed.

I used the 1st Apartment checklist on updater.com as a guide to the essentials.  The kitchen equipment, decor, linens and towels assume the bulk of the cost.  A Target run would be $400-$600 for the basics on the checklist.  I can confirm this price, making four similar trips for Geneva House over the years. Lets use the minimum cost and finance it for $40 per month added to our expenses.

The above added costs should give a realistic expectation for living expenses in addition to rent.  This does not factor in the time used to open utility accounts and trips needed to purchase household essentials.  Travelers trade a comfortable turn-key move in with this approach only to coordinate installation services and complete an expanded to-do list.

Lets see if the savings are worthwhile for the effort.  Our averaged total cost of living (expense) is $1,430 per month to furnish an unfurnished one bedroom rental.  Modest costs can be cut here and there but this price is closer to the projected minimum in the New Orleans market.  One can find studio and one bedroom furnished units in the $1200-$1500 range.  Owners can and will negotiate prices, especially during the current epidemic and economic worries.  

I feel the results are clear that anything short of a permanent move or 2+ year stay favor furnished rentals.  What are your thoughts?  Leave questions and comments below...