The pros and cons of furnishing a rental property

Whether to furnish a rental property is a common question among landlords, particularly as it can help increase rental yields. However, offering a furnished rental property may make a property harder to rent out and affect the types of tenants you attract.

The positives of furnishing a rental:

Higher rents

All other things being equal, a furnished property should attract a higher rent than an unfurnished one. 

Short-term leases

Furnished properties generally attract tenants that are looking for more flexibility than a standard 6 or 12-month lease. This can be appealing to landlords who want to use the property for part of the year themselves.

Tax advantages

There may be depreciation benefits available on a furnished property. It is best to discuss these with a specialist Quantity Surveyor. 

The negatives of furnishing a rental:

Higher turnover

Furnished properties tend to attract people looking for temporary accommodation such as business travellers, students, expats and holidaymakers.

More to maintain

If any of the furniture becomes damaged or broken it will need to be repaired or replaced.

Limited rental market

A lot of renters own their own furniture and may not be willing to part with it in order to rent the property.

So should you furnish your investment property? Everyone’s situation is different so there is no one size fits all answer.

An investment property may make sense for particular properties, however in general they will face a reduced rental market and added complications and therefore may not be worth the extra income they attract.

If you’re unsure whether or not it’s a good idea to furnish your rental property it’s best to discuss your situation and your property goals with your property manager.

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