To lease your property with furniture or without furniture is one of the questions we are commonly asked by landlords.
The answer is that there are pros and cons for both options. The primary determining factor is the location of the property.
If your property is located in an area that attracts a large volume of business travelers or itinerant workers then furnishing your property is a good idea as doing so will tend to attract more potential tenants and minimise vacancy periods between one tenant and another.
Itinerant workers are those who are either relocating for 3 to 6 months, commuting weekly for work and live elsewhere, or need a base while they establish themselves (perhaps they have sold one home and are building another or they have just separated from their partner and need a base while they assess their new situation).
Generally you can expect to attract tenants seeking a shorter lease term when you own a furnished property, so for some landlords this can be seen as a negative aspect of owning a furnished property.
Furnishing your rental property – do’s and don’ts
Should you decide that you would like to furnish your property there are some important things to consider.
- Ensure the furniture you select is strong and sturdy. Go for quality in terms of structure and durability rather than the cheapest price – although don’t pay too much either as it should be cost effective enough that it will depreciate within 5 years so you can replace it.
- Select modern furniture with clean lines in neutral tones to ensure it appeals to a wide audience.
- Be aware that legislation states that when any furnished item breaks, it must be repaired or replaced.
- Ensure you take out contents insurance (normally the responsibility of the tenant in an unfurnished property).
- Ensure the rent covers the cost of your furniture depreciated over five years, repairs and maintenance for breakages, and extra cleaning for all the furniture in your property.
Furnished properties attract a premium price in comparison to similar unfurnished properties. In almost all cases, the types of people you are attracting to a furnished property understand that they will need to pay more for the convenience.
All in all, renting a fully furnished property can be very rewarding as long as you have done your research and all the right boxes have been ticked.
Ask us if you would like to know whether or not your property would rent well fully furnished.