To furnish or not to furnish your rental property? That is the question!
As a landlord, it’s hard at times to find ways to increase your rental yield and avoid pitfalls like turnovers and prolonged vacancies.
While offering a furnished rental property to tenants can definitely bring higher rental yields, this can also be offset by high tenant turnover.
So, to include furniture or to lease bare – what’s the best option?
Read more from the Leederville property management experts at Pro Property Group to find out.
The many ways landlords lease their properties:
- Fully furnished and equipped – everything from furniture, white goods to kitchen utensils, cutlery and more on-site and available for use.
- Fully-furnished – where landlords provide the furniture, but not the cutlery, bowls etc.
- Partly-furnished – some lounges, chairs and tables may be provided.
- White goods only – where all or some white goods are present.
- Unfurnished – where tenants bring everything they will need and use to the property.
When are furnished properties a good idea?
Some tenants request and require furnished rental properties only in their searches.
These are the tenants that often are attracted to furnished rental properties:
- Business travellers
Where professionals move to a location on behalf of their company to complete work.
A transient, work-focused lifestyle will call for the convenience of a lock-and-leave short-term rental.
- Short-term tenants
Furnished rental properties like units and apartments are the answer for many travellers, students, and expatriates working overseas on contracts.
In sadder circumstances like relationship breakdowns or unexpected life changes, furnished properties are ideal for these tenants.
It may seem expensive and unnecessary to buy furniture for a property you have no plan on living in yourself, but soon enough, a furnished rental property will pay itself off.
Why? Because people are willing to pay a higher rental price for the convenience of an already furnished property.
The risks that come from furnished rental properties
Unfortunately, for every person after a short-term, furnished rental, there is probably more younger families, couples or singles who are looking for a long-term place, and to add their own touch to.
Here’s some other potential risks of supplying a furnished rental property:
- Purchasing and maintaining furniture – You will need to monitor your furnishings and ensure your inventory is well maintained. Items will need to be replaced promptly if not working, leading to a higher level of maintenance than offering unfurnished.
- A rule of thumb is unfurnished properties lead to longer-term leases, with minimal vacancies and less wear and tear. Furnished properties, on the other hand, attract generally shorter leases (between 3-12 months), which could lead to higher vacancy rates.
At the end of the day, furnished and unfurnished properties always appeal to someone.
You just need help matching the right tenant to your property.
Your Leederville Real Estate Agency
As a landlord, you may not have the time or energy to manage your own property (we get it).
That’s where you need Leederville property management services like Pro Property Group.
We’re the professional real estate agency in Perth, ready, willing and experienced in matching dream tenants to dream properties and taking care of everything for you, in between.
Contact Pro Property Group today for all your property management Perth needs.