- 31 October, 2018
- PROPERTY MANAGEMENT
- Rental, Landlords, property
Fully furnished rental properties are popular with tenants:
- Who are looking for a short-term lease including executive and holiday rentals.
- Tenants whose belongings are in transit or storage, or who travel regularly for work and need a place close to their work to stay.
- Tenants who don’t own any furniture and don’t want to buy any.
Pros of a furnished property
There are number of benefits of having a fully furnished rental. Some of these benefits include:
- The potential to charge a premium for fully furnished properties.
- Letting a furnished property allows you to increase depreciation deductions.
- It saves tenants money as they don’t need to buy the furniture themselves.
- If your property is located near the CBD and is nicely furnished it can attract higher paying professionals as it better suits their fly in, fly out lifestyle.
Cons of a furnished property
Whilst you will be able to charge higher rent for a fully furnished property you may find:
- You have a higher turnover rate with tenants only staying for 3-6 months leaving you without rent while you find more tenants.
- The costs to set up the property and style it is an additional expense you may not want.
- Every 3 – 5 years you’ll need to update the furniture and styling which again can be costly.
- Your advertising costs will be higher as you’ll need to keep promoting the property due to it being vacant more often.
- It takes time to maintain and monitor an inventory list of all your items.
- You are responsible for replacing or fixing items quickly if they are not working.
- Whilst it is optional to take out contents insurance on the furniture and other items it is a good idea. Especially if you have items of value in the property. This is an additional expense you need to consider.