December 28, 2013
When you are setting up your rental you are going to always debate whether to go the extra mile and furnish it altogether or leave the space open for your tenants to bring in their own stuff, there are pro’s and cons to either debate.
Furniture can surely increase the value of the property itself but you can expect a higher loss ratio since the furniture will be in use it might get damaged. You might try to get your tenants pay for it, but that becomes a hassle and tenants don’t like being stuck with broken furniture ( who would )
Whatever you decide know that the decision to Furnish or not to Furnish is totally up to you. There is no obligation whatsoever for a landlord to provide furnishings to the tenants
There is however a balance that you can strive for. Generally people do move in with their furniture but the larger appliances like range tops, ovens, and microwave are a bonus and they go a long way into helping sweeten the deal. Although they don’t essentially fall in the furniture category still it’s a thing to have and add on that can add value to a property.
Pro’s of Adding furniture to the property.
A Fully furnished property can fetch greater rent than a non furnished property, that’s the main reason right there to invest in furnishings. Make a space that you would be comfortable living in yourself and you can charm the socks off your potential tenants.
The Con’s of Adding furniture
Fully furnished units basically modify your target consumer bracket; the people who will generally go for a fully furnished solution are likely going to be business professionals who are in town to manage a long term project, students, or people who want to live there on a short term basis.
So, on one hand you can have a high end unit that rents out well, but on the other hand this unit might only be occupied for only a few month’s at a time, and you will have to manage the moving in and moving out inspection to identify any kind of damage to any property.
The Pro’s of not adding Furniture
When people move in to an unfurnished unit, they are basically in It for the long haul, they will make the living space their own and move all their stuff in. Basically you know they are not gonna be moving out anytime soon, meaning possible long term rent security for you.
Even if the tenants do decide to move out eventually you only have to come and look what kind of damage was done to the walls and living space, these are generally minor repairs that you can easily deduct out of the deposit. It
The Con’s of not Adding Furniture.
Although the unit will be booked for the long haul, the unit itself might go for a lot less than it’s furnished counterpart and a whole years worth of rent would be equal to what you might get in 3 months from the furnished one.
That’s the biggest downside there is when you work on unfurnished rental as you are basically in it to make money, and if it’s not making good money then what’s the point of it.