Should I Rent Out My Property With or Without Furniture?
Video: Should I Rent Out My Property With or Without Furniture?
One crucial decision you have to make when planning to invest in property is whether to rent it out furnished or unfurnished. This is the question most investors tend to ask. What difference does it make?
Hi, it’s Lauren Robinson again from Rental Results.
A question that’s often asked by property investors is should I rent out my property with or without furniture? And what difference is that going to make to the rental return?
In the past few years, we’ve witnessed a rise in the number of investors opting to furnish their properties. It can assist with tax appreciation and add value and desirability to your property.
Determine your target demographic and the demand and supply for furnished properties in the area where your investment property is located
Properties that are close to the city, hospitals, universities are more likely to attract tenants that are seeking furnished properties as to houses in the suburbs. There’s also a larger percentage of prospective tenants that are looking for unfurnished properties as opposed to furnished properties. When considering whether to furnish your property, you need to take into consideration that you’re likely to have a shorter term tenancy should you rent out the property with furniture.
Be sure to furnish it well.
If you’ve decided to furnish your property, make sure your use quality furnishings as they’re usually able to handle the wear and tear of tenants.
Maintain your inventories
This is an important factor with furnished properties. Routine inspections will assist with ensuring your property is maintained at a higher standard. You’ll also have to factor in replacing the furnishing when required.
Making the decision to furnish your rental property comes with some extra considerations as maintenance is an important factor. It’s best to speak to your property management professional when considering whether to furnish or unfurnish your investment property as they will be able to give you statistics and facts as to whether there is a demand in your area for furnished properties and if you’re likely to achieve a higher return.
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