To furnish or not to furnish your rental? – That is the question
Should you rent your property furnished or should you market it as vacant? It’s a tough question we’re often asked, and the answer is – it depends.
Under some circumstances a furnished home or apartment can be a real drawcard, allowing you as a landlord to command a higher rent. In others, it can act as a deterrent, closing you off to an important segment of the market.
So, when it comes to furnished or unfurnished, here’s what we advise…
When furnishing works
A furnished home or apartment tends to lend itself to specific segments of the rental market. These are people at critical stages of life.
They might be students, who have little in the way of furniture to their name, or perhaps they’re professionals and your property is their secondary accommodation when they just happen to be in town.
That means furnished rentals tend to be more appealing in areas like:
- Student hubs near universities
- City locations (especially apartments)
- Transient towns where leases tend to be short, and people arrive there from elsewhere (mining areas are a good example)
- Blue chip rentals, where the furnishings suit the home, and the renters might be ex-pats or professionals
The benefits of furnishing
In the right market, furnishing your rental can make it more appealing and valuable to a prospective tenant. They can quickly move in with little in the way of extras and simply go about their lives.
In this instance, a furnished property might also command a higher return, with a rental price that can average $50 to $100 above the norm, depending on the area.
As a word to the wise, if you furnish or partly furnish a property, you as the landlord are responsible for the furniture’s upkeep.
So if that couch breaks or looks tired due to fair wear and tear, it’s your responsibility to fix or replace. It’s the same with the TV and anything that’s present when the tenant moves in.
Meanwhile, furniture can actually be a detraction. If furniture is tired or old, it’s likely to put people off. If they come with their own items, furnished rentals are likely to be ruled out.
When furnishing tends not to work
If your property is in a family area that comprises suburban homes, terraces or apartments, chances are furnishing your property for rent isn’t likely to pay off.
Most families come with their own items that they’ve lovingly acquired over time and the prospect of living with another person’s furniture taste and choices isn’t likely to suit.
Basically, whether to rent your property furnished or unfurnished depends on where it’s located, it’s style, and the types of tenants you hope to attract. It also depends on the quality of furnishings involved.
In the right place at the right time, furnished property’s command extra value. In the wrong place, they can prove a detraction.
We understand that answer is far from conclusive, but an expert property manager is the best person to advise as to whether they believe your home would offer greater value and appeal furnished or unfurnished.
You can contact our expert property managers to discuss your home and its potential market here.