To furnish or not to furnish? That is the question.
Deciding whether to rent your property furnished or unfurnished can set the path for the kind of tenants you attract to your property. Depending on your goals with your property, you may prefer the yields of charging higher rent for a furnished property, but this may only be suitable for short-term tenants. In this article, we outline how you may choose to rent your property and the pros and cons of leasing your property furnished or unfurnished.
The different ways a landlord can advertise their property
There are a few different furnishing options that landlords can opt for when they advertise their property. These include:
Fully furnished and equipped – furnishings including kitchen utensils and cutlery
Fully furnished – all furniture is provided
Partly furnished – large furnishings such as beds and lounges are provided
White goods only – appliances such as the fridge and washing machine are supplied
Unfurnished – no furniture provided
When is a furnished property a good idea?
A furnished property can work in a few scenarios, such as accommodation for business travellers, business leases for travelling workers, and short-term leases for holidaymakers or students. It’s important to remember that the furnishings you include in your property should be of the highest quality possible. Simply adding unused items from around your home can look obvious and doesn’t create an attractive place for tenants. Ask yourself if you’d like to live in the space as you decide what furnishings to include in a property.
Key considerations if you furnish your property
While there are upsides to renting your property furnished, there can be some downsides too. For example, not every tenant wants to live in a furnished property. If you’re leasing a regular family home, you may be better off leasing the property unfurnished to minimise your vacancy rates. And if you do decide to lease your property furnished, remember that you may need to spend money in the future updating, replacing or maintaining items.
Get the best of both worlds
One way to attract more tenants to your property is by advertising your property as furnished and unfurnished. You can do this by placing a notice in your property description that it can be leased for an extra $XX per week. For example, your property may rent unfurnished for $400 per week and $500 per week if it’s furnished. This can help you to increase the number of enquiries and potential tenants for your property.
Choosing to furnish your property and to what extent will depend on your goals with the property. If you’re looking to attract short-term tenants or use your property for holiday letting, fully furnishing your property may be a good option. However, if you’re hoping to attract some long-term tenants who make your investment property their home for at least a few years, it can be a good idea to rent your property unfurnished and let people make the space their own. There’s an option out there to suit every investor, so start by thinking about your long-term goals for the property and the tenants you want to attract.
Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.