This seems to be an increasingly popular question to which there isn’t a black and white answer. Whether you should furnish your rental fully depends on the type of property you own, the type of tenants you want to attract and the responsibilities you want to have as a landlord.
While there is no scientific blueprint for working out if you should start interior decorating and bulk ordering from IKEA, there are some important pros and cons:
Logic would dictate that if you furnish a rental, you should be able to charge more rent. This is because the tenant forgoes the costs of acquiring their furniture and can hopefully justify paying more.
However, your ability to charge more rent will be limited by the type of tenant you are targeting: a student may not have furniture so may be attracted to a fully furnished apartment but may not be able to afford a rent increase. Take this into consideration when you are weighing up the costs of investing in furniture with potential rent increases.
From a renters’ perspective, there are some major benefits to renting a fully furnished property. This is particularly the case for students, immigrants, and people looking for short-term leases (e.g. they are on secondment in your town for work).
There is a whole target market out there looking specifically for properties that come with the whole kit and caboodle. Do your research and work out whether this type of target market exists in your region; if so, furnishing those empty rooms could be worth your while.
Unless it is a student flat and your tenants can settle for second-hand furniture, investing in a new lounge suite can sometimes cost an arm and a leg. Be realistic about whether you can afford to furnish your rental, and if it is something you think will pay off in the long run, work out how many furnishings your rental will cost before you start buying appliances. Don’t forget to take into account the costs of insuring your contents and maintaining its upkeep.
Unfortunately, wear and tear are a fact of renting. It doesn’t matter how careful and respectful your tenants are, as long as they are using your furniture, especially for extended periods, there will be some wear and tear that you will have to account for.
You can prolong furniture lifespan by buying quality, durable and stain-resistant furniture; this is a worthwhile investment. But eventually there will come a point that some furnishings will have to be replaced - and this will cost. Also, be aware of any responsibilities you may have in your State relating to the standard and upkeep of furnishings. You must follow these.
Have you furnished your rental? Were there any pros and cons that you would like to share with our Landlord Boss community? Leave a comment below - we would love to hear from you!
We hope you found this blog interesting! However, do note that it should not be used as a substitute for competent legal advice and/or other advice from a licensed professional.
As the property owner, you’re responsible for non-compliance with snow removal ordinances, so it’s best if you make sure snow removal equipment is available. You may even find if you check the local bylaws that you are required to keep public thoroughfares that cross our property free from snow too...