Which one is better for the landlord - Furnished or unfurnished rental property?
Renting a house is a business. One of the business considerations is whether you should renting a furnished house or unfurnished house. Some landlords prefer unfurnished houses because they are not ready to invest much, deal with regular furniture updates and damages. They let the tenant take charge of their furniture. Others like to rent furnished houses to appeal to a different clientele.
Just like every other major decision, you should consider all aspects before coming to a final decision between renting a furnished or unfurnished property. This might not sound like a big deal but can play a considerable role in achieving a profitable rental property.
We have compiled some noteworthy pros and cons of both options so that you can choose the direction best suited for you.
The criteria to furnish or not depends mainly on the type of tenants you focus on attracting. The types of tenants you are likely to attract with a furnished house are:
Whereas an unfurnished house is likely to attract:
‘Furnished’ is a diverse word – it could range from a partially furnished unit to a fully furnished unit. There are no hard and fast rules of what should be included in a furnished house, and you can decide the extent to which you would like to furnish your property.
A properly furnished property mostly covers almost everything, from beds to couches, from shelves to wardrobes, and even essential electrical appliances like oven and dishwasher. In the US, appliances like stove and dishwasher are typically included in every unit, furnished or not. In other parts of the world, the tenants bring their own stove. A furnished home can have a lot of benefits as well as some drawbacks, which we will discuss below:
Preferences play a huge role again. Unfurnished option appeals to people who like to make the place their home. Older tenants and the ones with families generally prefer this option as they already have their furniture collection. Here are some key pros and cons of renting an unfurnished property.
Furnished home does provide long term benefits to the landlord if the property is located in a busy town. However, a homey countryside house may be better off without furnishing. Long-term tenants who want to live in a rental home that reflects their own sense of personality would prefer an unfurnished home.
There is no definite answer to the question: to furnish or not to furnish. It boils down to how much money you are willing to invest, how frequently you can inspect the property, and what kind of tenants you are hoping to attract.
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