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Wednesday, 26 June 2019
Agent Resource Center
This Old House - Do-it-Yourself

Should You Furnish Your Rented Property?

Written by Posted On Wednesday, 22 May 2019 06:31

Furnished or unfurnished is a debate which any new landlord is faced with. And it really does depend on what type of tenant you are looking to attract, as their needs will impact whether or not you actually need to furnish the space or not. Of course, there are a wide array of pros and cons to furnishing, no matter what type of tenants you are looking to attract. So, it’s important to keep that in mind.

As such, here are the upsides and downsides to why you may or may not want to furnish your new rental property.

  • Furnishing Pros

    There are a few pros when it comes to offering out your rental property fully furnished:

  • - Furnishing saves specific prospective tenants time, money and effort - which makes it likely for them to choose your property.

    - Charging higher rent for the convenience of a furnished property.

    - There is a 10% tax benefit for ‘wear and tear’ on properties which are furnished or have appliances/kitchen equipment.

    - For example, having good modern living room furniture can attract someone willing to pay more for luxury of using these furnishings.

  • Furnishing Cons

  •  

    And, on the other hand, there are also a number of downsides when it comes to offering a furnished property:

  • - If tenants own their own furniture, they may not choose your property as they would have to pay to store it elsewhere during the length of their tenancy.

    - Tenants who seek unfurnished properties tend to stay in said properties for shorter periods. Whereas, tenants who furnish themselves tend to settle for longer and avoid the effort of moving a whole house/apartment of furniture regularly.

    - More furnishings means more issues to fix, repair or replace between each tenancy.

    - You will not have to worry about long-term wear and tear of individual furnishings.

  • Think of Your Ideal Tenant

  • Now, all that’s left to consider is who your ideal tenant will be and whether or not they would like the space to be furnished.

  • For example, a young professional is almost guaranteed to want an already furnished space. They won’t have accumulated their own furniture, nor perhaps will they be able to afford furnishing the space themselves. Whereas, a young family or older couple might want to make the space their own with personal furnishings. So considering who you want in the space, first and foremost, is vital in order to finalise your decision overall.

  •  

    On the whole, whether or not you furnish a property does depend on your own preference. But, there are overall pros and cons to the choice either way which you should be aware of and use to guide your ultimate decision. If you end up regretting said choice - either way - then you can always choose the opposite. Either by furnishing prior to the next tenancy or by selling/removing the furniture likewise.

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