It is observed that furnishing a property for rental is quite expensive. The most confusing question is, before renting your property, should you spend money on furnishing it or let your tenants furnish it? So, before proceeding further, here are a few guidelines which you need to follow when deciding whether you should rent out your unit furnished or unfurnished to the people.
So, let us explore the benefits of renting out the furnished or unfurnished property to your tenant.
Here are the benefits of renting out a furnished property:
- While allocating a furnished property, you can demand a higher rent from your tenant. Well-furnished property rents are 50 % more than comparable to the unfurnished property.
- Secondly, being a landlord, if you are targeting to be involved in a short-term rental business for approximately 12 months, then the surely furnished unit will work for you as it attracts more short-term rentals as renters don’t have to move their belongings.
- Furnished units get rented more quickly as tenants can save their costs and time associated with furnishing.
- Apart from these things, if you attractively decorate your apartment, it will definitely demand better treatment from your tenants.
Now, let’s have a look at the benefits of renting out an unfurnished unit:
- Firstly, tenants may stay for quite a long period as they have furnished the apartment as per their needs and space. Furnished properties are usually rented for a short period, whereas unfurnished units allow tenants to make their own apartments.
- Most of the tenants are quite happy because they have decorated and designed or customized the space as per their requirements.
- All the tenants’ personal belongings are not required to be insured as all the furniture belongs to them, and they are solely responsible for the same.
- Needless to worry, if any damage happens to your tenants’ personal belongings, it will be taken care of by them only.
- Whenever any unit gets furnished, the tenants will bear the cost; otherwise, if you want to carry the cost, you can increase the rent, which will cover the furnished cost incurred by the tenants.
- Additionally, the unfurnished property requires less management than the furnished ones since they experience more frequent tenant turnover.
To sum up, furnished properties attract younger tenants who are more likely to enjoy a furnished apartment’s convenience. Also, it is easy to furnish such properties inexpensively. While landlords having larger apartments leave them unfurnished since tenants having bigger families are likely to decorate and customize them as per their own choice.
So, I would advise you to evaluate the entire market before deciding about the same.
MTL GROUP is a property management and financing company, operating in the Greater Montreal area in Quebec. Our professionals are just a phone call away to assist you with your property management and financing needs.