To Furnish or Not to Furnish: A Landlord's Guide
- Posted By Frank Pang
As a property landlord, one of the crucial decisions you need to make is whether to lease your property fully furnished or unfurnished. This choice can significantly affect the type of tenants you attract and the potential return on your investment. Both options have their unique pros and cons, and the best choice often depends on the specific circumstances of your property and its location.
The Appeal of Furnished Properties
A fully furnished property can be extremely attractive to certain tenants, especially those who are new to the area, such as overseas students or people who have recently relocated. The convenience of moving into a home that's already set up can be a significant draw. These tenants might not have the means or time to furnish a property themselves, making a furnished home an ideal solution.
Potential Drawbacks of Furnished Properties
However, fully furnished properties can also present certain challenges. For one, these tenants may not plan to stay long-term, which can potentially affect your overall rental yield. Additionally, furnished properties often require more maintenance and present more cleaning issues.
We've encountered situations where heavy furniture made thorough cleaning difficult, leading to complications such as mould growth underneath, which can result in hefty repair costs. Hence, it's essential to consider the added responsibility and potential additional costs that come with furnishing a property.
Unfurnished Properties: A Blank Canvas
On the other hand, leasing an unfurnished property offers a blank canvas to potential tenants, often attracting those looking for a longer-term stay, like families or professionals planning to settle in the area.
An unfurnished property can reduce the number of potential cleaning and maintenance issues, and the reduced need for wear-and-tear repairs can also save landlords money over time. However, an unfurnished property might linger longer on the market since it may not appear as "move-in ready" to prospective tenants.
Assessing Your Situation
So, should you lease your property furnished or unfurnished? The answer lies in the nature of your property and its location. For instance, offering a fully furnished property in a family-oriented suburb may not be the best idea. It may even prolong the property’s time on the market, impacting your return on investment.
Consulting with a Property Manager
Regardless of your decision, it's vital to consult with a property manager. They can provide advice tailored to your specific situation and help you navigate the challenges of each option. Your property manager can guide you in creating an attractive, profitable rental property, whether you decide to furnish it or not.
Remember, the key to successful property investment lies in understanding your property, knowing your prospective tenants, and making informed decisions that best meet their needs while maximising your returns.
Frank Pang
0433 388 898
"Welcome to our real estate blog! I'm Frank, Director of BOLD, with 15+ years in Melbourne's property market. Here, we share insights, tips, and market updates to help you make informed real estate decisions. Catering to investors and first-time homebuyers alike, we're excited to have you join us. Reach out with any questions, and let's navigate the property world together!"
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