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?
In the past few years, we have witnessed a rise in the number of investors opting to furnish their properties. Apart from adding to the value and desirability of the property (allowing you to ask for a higher rent), it provides other advantages as well. However, there is really no definite
answer as to which option is better given that the answer primarily depends on your target market and its demands.
Unfurnished Properties Peak Interest
Believe it or not, the market pays much more interest in properties that are unfurnished. In fact, quite a considerable percentage of property hunters are looking for units that are barren that’s easy for them to style according to their own tastes. These sort of clients are likely to stay longer in your property. Conclusively, unfurnished properties attract longer tenancies.
Things you need to consider when you decide to furnish a property for lease:
> Shorter lease term – Furnished properties tend to have a shorter lease term compared to unfurnished ones. And this means higher possibility of vacancy and more frequent leasing fees.
> Furnish it well – If you have decided to furnish your property, better make sure it’s done well. Style it beautifully to make it look presentable and attractive to your target market. Make sure it is fully equipped, and includes kitchenware such as utensils, dishwashers and so on.
> Oversee all of the furnishings and see to it that you are able to maintain your entire inventory. Always check for appliances or items that are not working and ensure that they are either repaired or replaced immediately. Restyle your furnishings every 3-5 years to keep it up to date.
When you decide to furnish your rental property, you need to be completely aware of the extra expenses it entails, like the extra agency fees and the maintenance of the items. You’re likely to have a higher return when you invest on an unfurnished property. However, if your investment is more of a lifestyle choice, perhaps you tend to use the property in between tenancies, then go ahead. Ultimately, whether to furnish or not to furnish your rental property is entirely your call