Furnished or Unfurnished

At some stage during your investment lifetime you may face the dilemma of whether to rent your investment property furnished or unfurnished. There are pros and cons to both these paths so let’s take a closer look at them.

Location is the first aspect to consider. Your property really needs to be in an area that has a high degree of business travelers. Furnished apartments normally attract itinerant people. These people are either relocating for a short period of time, 3-6 months, are commuting weekly for work and live elsewhere or have relocated and need a place to be base short term while they establish themselves. You would normally expect a slightly shorter term lease on furnished properties.

When furnishing your property, there are some things to consider. The furniture needs to be quality enough that it doesn’t break easy under, above normal, use conditions. It needs to be fashionable with clean lines and relevant to today. It also has to be cheap enough that you can depreciate it in five years or less and replace it. A key component with furnished properties is, keep the decor current. You also need to be aware that when any furnished item breaks, legislation in all states requires it be repaired or replaced.

Your furnished investment property is not a
dumping ground for your old furniture from home.

Furnished properties will attract a premium from the market. In most cases the demographic you’re targeting understand the concept and expect to pay extra fro the convenience. If your property doesn’t attract a premium then maybe consideration should be given as whether this type of concept is suited in your area. Ensure the premium covers the cost of your furniture depreciated over five years, repairs and maintenance for breakages, and extra cleaning for all the furniture now in your property.
Renting a fully furnished property can be very rewarding if you ensure you have ticked all the right boxes.