Should Rent my property furnished or unfurnished?
One of the most common questions we get asked is whether rent a property furnished or unfurnished.
Let’s have a look at the advantages and disadvantages of renting your furnished property.
Disadvantages of renting a furnished property
- Higher Vacancy Rate
Furnished properties are usually rented as temporary accommodation. Tenancies are usually shorter and don’t always start on the 1st day of the month. You have to expect at least 2 months of vacancies per year. Moreover, you significantly reduce your pool of prospective tenants. Most of the tenants have their own furniture and will not consider renting a furnished property.
- Cost of maintenance
Once the furniture is in your house or apartment you have to maintain it. Any furniture or kitchen appliances must be replaced when broken. Furnishing quickly adds up items on your list of things to take care of and maintain.
- Poor return on investment
We are not talking only about the furniture. Your furnished rental must be fully equipped. Take into consideration that tenants are bringing in only their suitcases. All everyday items are expected to be provided in your rental. Looking at the cost of the furnishing your property, it might take years to get your return on investment.
- More work
You spend a lot of money on your furniture and now you need to make sure to protect it. This means extra hours of work you spend on the condition inspection report. You need to prepare a detailed inventory list which takes hours to complete. Imagine going through the inventory 3 to 4 times a year during a routine inspection or every time you have a new tenant.
- Utilities included
Due to the shorter nature of the tenancies. Furnished properties are expected to come with all utilities, internet and cable included.
- Expensive insurance
Your insurance will definitely go up. Now that your property is furnished, you are not only insuring your property but also the furniture. Based on the value of your content your premium will go up significantly.
Advantages of a furnished property
- Probably higher rental income
You are looking at possibly higher rental income, BUT… Furnished rentals are seasonal and the rental rate varies as the season changes. In recent years the rental rates of furnished properties were very similar to those of unfurnished rentals.
- No moving
If your property is already furnished it saves you the hassle and the moving cost when your rent is furnished.
Is it worth to rent your property furnished?
Unless you are renting your home only temporarily and are planning to move back, we say NO, it’s not worth it.
Need help with your rental?
Get in touch and be ready to experience first-class property management at an affordable price. Because with Bolld Real Estate Management “Being a landlord has never been easier.”