Furnished or Unfurnished? Know the Pros and Cons

Furnished rentals may be more costly, but there are a few pros to them. The idea of “furnished’ can be completely up to you as Landlord/Property Manager. Some rentals will only have kitchen appliances or living room furniture,while others will have additional decor. Either way, when setting up your property, here are a few things to consider.

Pros

• Money saver
  • With a furnished property, you’ll attract a niche market of tenants on a budget.
  • When a tenancy ends, you can keep the furniture for the next tenant or for yourself.
• Attract more transient tenants
  • More mobile tenants will often have less furniture. If you’re aiming for tenants like students, young professionals or people only looking to stay for a shorter period of time then a furnished rental may be to your advantage.
• Higher price bracket
  • Tenants are ready and willing to pay more for the convenience of moving into a fully furnished home.
• Tax benefits
  • Depending on the type of property you have, you may be able to deduct a percentage of the cost of goods from your tax liability.

Cons

• Location
  • You’ll want your furnished property to be in the right location to attract the right tenants. University campuses and business districts are premiere locations.
• Regular update of furnishings
  • If you’ve decided to let a furnished property, it’s best to invest in quality furniture or the type that won’t have obvious signs of wear and tear over time.
• Insurance issues
  • While it may not be an obligation, it’s still wise to take out insurance on items on your property.
• Safety standards
  • There may be certain codes you’ll need to follow when installing items like electrical appliances.