Conflicted with whether or not to furnish your investment property? The decision can be difficult, especially if you’re moving out of your rental with a cluster of home décor and contents that you no longer need.
But when it comes to decking out your rental, there’s lots to consider. What are the demographics of the area? Furnished properties will appeal to a certain market, such as tenants opting for a shorter lease, travelling professionals or students not wanting the upfront cost of furnishing. If the property can double as a holiday rental, then furnishing it may also be a desirable option.
On the contrary, leaving your investment property unfurnished – especially in a residential suburban area – will likely increase your tenant pool. Empty rentals appeal to families on the move with their own furniture, their own tastes or those with kids who don’t want responsibility for landlord belongings. In NSW, it’s important to know that furnished rentals attract a longer bond, which could deter tenants.
With property owners intending to increase their rental yield through furnishing, it pays to know if upfront and maintenance costs will make it a worthwhile investment. A 2017 Nestpick study comparing the prices of furnished vs unfurnished apartments found that on average, the time to recoup the cost of furnishing a family capacity apartment in Sydney was 6 months (coinciding with rental rates – for the full study, click here).
While there’s no right or wrong answer to a furnished or unfurnished rental, the most important part is that you’ve considered your market before making the final decision!
Need further advice? Get in contact with an experienced agent at Prudential Real Estate. Call (02) 4628 0033 or email firstname.lastname@example.org.