As a new landlord, will you rent your property out as furnished or unfurnished? Both have good and bad points which owners need to consider. Think about the functionality and purpose of the property, the current rental market, and who your ideal tenant is.
Fully Furnished Rental Units
Furnished units can charge higher rent, and they have a lot less competition. However, landlords will need to invest more in maintenance and should also realise that there may not be as many tenants looking to rent a furnished place.
Vacation homes and apartments are probably the most logical reason for landlords to furnish their units. If the property is intended for short-term leasing (usually six months or less) to vacationing tenants or foreigners who are travelling on a working holiday, they should be furnished. Holidaymakers will not bring furniture with them, and they still want to stay in a beautiful place.
Rentals intended for business people should be furnished elegantly and provide all the personal and business amenities that would be available at a hotel (internet/wireless access, network TV, linen and bedding). These units are usually rented out for anywhere between several days to a few months, and they usually in business districts or near the airport.
Flats that are near a university campus, which landlords are willing to rent to students, should be furnished with sturdy furniture that will, on the one hand, survive rough handling and still be cheap enough to replace when it’s needed.
Partially Furnished Units
Newlyweds and young people who have accumulated some furniture but not enough for an entire house would appreciate a partially furnished apartment. They may include kitchen appliances such as a stove, refrigerator, and dishwasher; washing machine and dryer, and maybe a piece in the living room and bedroom. Landlords should provide furniture in neutral colours so it doesn’t look out-of-place with the tenant’s furniture.
Empty, Unfurnished Units
Renting a unit as unfurnished will attract the highest number of tenants, and there are more rentals for them to choose from.
Tenants want to make their rental units as comfortable as possible so they want to add their touches to them. They want to rent an unfurnished home so they can bring in their furniture and home decor. Unfurnished rentals are the least amount of work for a landlord because you only have to deal with the house and not the contents in it.
Do you lease your rental as furnished or unfurnished? Let us know in the comments.