Should you offer your property furnished or unfurnished?
Property owners have many decisions to make when putting a rental on the market. Whether to offer it furnished or unfurnished is just one of the questions that comes up. There are pros and cons to both options and landlords should weigh them up when deciding which way to go. Knowing whether to include furnishings with your rental can be a tough question to answer. From there, however, there’s a clear distinction between a furnished or unfurnished property – and what can be charged for each.
So, what is a furnished property exactly? Finn says it’s a property that not only comes with fixed items like blinds and lights but also non-fixed items such as couches, beds, tables, chairs and non-fixed appliances, like washing machines, dryers and fridges. What’s included differs from property to property, but generally speaking, a furnished property has everything someone would need for everyday living.
1. Soft furnishings can be included
Finn says some furnished properties also come with soft furnishings, too, which refers to rugs, cushions, bed covers, wall art and plants. Others don’t.
2. You can ask for higher rent
The main benefit of offering a property furnished is financial. That’s because a furnished property appeals to a specific kind of tenant, which often means property owners can ask for more rent. But conversely, furniture may have to repaired and replaced over time, as tenants may not look after it and this can be costly.
3. Certain demographics require furnishings
Furnished properties tend to appeal to a certain demographic, such as professionals on short contracts, who also look for short-term leases. So, if that demographic is strong in the area, it makes sense to meet it.
The vast majority of rental properties in Australia are offered unfurnished, as the tenants in the area have their own furniture. The main most reason landlords “go unfurnished” is because the local market demands it. If the majority of tenants in the area are long-term renters looking for a “home”, unfurnished is the way to go.
4. Unfurnished homes are easier to manage
For a property owner, it’s much simpler to offer a property unfurnished. Furniture doesn’t have to be purchased and maintained, there’s no need for an inventory and time-consuming condition reports after each tenancy and in most areas, unfurnished appeals to the most potential tenants.
The question of whether it’s best to offer a property furnished or unfurnished is a complicated one. The decision depends on where the property is located and the investor’s goals. If the property is in one of Australia’s larger metropolitan or regional areas, and the goal is to have a long-term tenant, landlords will have more success offering an unfurnished property. Furnished properties almost always go hand-in-hand with short-term leases because it doesn’t make sense for a tenant to go through the hassle of moving furniture in and out for a three-month lease.
If a property is in a more transient location, like a CBD or an area like far-north Queensland, or the goal is only to offer a shorter-term lease, landlords should look to offer their properties furnished.
Written by Eric Mai
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Property Manager & Business Development Manager