The Pros and Cons of Furnishing Your Rental Apartment

By furnishing your rental apartment, you can attract a broader range of tenants, including students and professionals who don’t own any furniture and may want to avoid the hassle of buying their own furnishings.

Students may only need temporary accommodation while completing their studies. Professionals may only want to rent for the duration of a work contract before being relocated elsewhere. Buying their own furnishings only to have the issue of selling it or getting rid of it once their studies or work contract ends can be problematic. If you are catering to these sectors, offering them furnished accommodation makes sense.

There are other positive reasons for providing furnishings, including:

  • May command a higher rent.
  • It can be more appealing to tenants who want a move-in-ready property.
  • It can be a good option for short-term rentals.

The cons of renting a fully furnished apartment include:

  • Requires an upfront investment in furniture.
  • Furniture can be damaged or lost by tenants.
  • The landlord is responsible for maintaining and cleaning furniture.
  • It can be more difficult to rent to tenants who own furniture.

The Benefits of an Unfurnished Apartment

It can be very tempting to rent out your apartment unfurnished. There are many benefits to doing this, including:

  • No need to invest in furniture.
  • The landlord is not responsible for maintaining or cleaning furniture.
  • It may be more appealing to tenants who want to personalise their space.
  • It can be a good option for long-term rentals.

However, there are also a few cons to consider when letting your apartment unfurnished, including:

  • It may attract a smaller pool of tenants.
  • It may be less attractive to tenants who do not have their own furniture.
  • Requires tenants to move in their own furniture, which can be time-consuming and expensive.

Target Audience and Considerations

Understanding your target audience is crucial when deciding whether to furnish or not furnish your rental property. This decision plays a significant role in attracting the right tenants and maximising rental income.

By understanding the preferences and needs of your target audience, you can make informed choices aligned with the specific rental property and market conditions. Here are a few things to consider when narrowing down your target audience:

  • Location: Urban properties cater to students, young professionals, and temporary residents who prioritise convenience and move-in ready spaces, often favouring furnished rentals. Conversely, suburban or rural properties appeal to families or long-term tenants who prefer unfurnished rentals for personalisation.
  • Property Type: Apartments or studios are more suitable for furnished rentals due to their smaller size and convenience for individuals or couples. Larger properties like houses or townhouses may be better suited for unfurnished rentals, accommodating families or tenants with their own furniture.

Market Research for Informed Decisions

Market research is crucial to determine the local demand for furnished or unfurnished rentals. Analysing rental listings, vacancy rates, and tenant preferences provides valuable insights into the target audience’s preferences. Understanding local demand and pricing for furnished rentals can help you gauge the potential return on investment.

Online resources, surveys, and booking a consultation with Crown Luxury Homes’ expert team can provide valuable insights into the preferences and needs of the target audience. You can make informed decisions about furnishing your rental property by carefully considering your target audience, location, property type, and local demand.

Tips for Furnishing Your Rental Apartment

With a bit of creativity and careful planning, you can create a stylish and comfortable space for your tenants without breaking the bank.

Here are a few tips for furnishing an apartment cost-effectively:

  • Start with the essentials. Start with the basics, such as a bed, sofa, table, and chairs. You can always add more pieces if you feel they are needed, and the space can accommodate it without making it feel claustrophobic.
  • Shop around. There are many great places to find affordable furniture online and in high-street furniture shops.
  • Look for furniture that is made from durable materials. This will help it last longer and save you money in the long run.
  • Buy furniture that is the right size for the space. Too much furniture will make the apartment feel cramped, while too little furniture will make it feel empty.
  • Feel free to mix and match. You can find great deals on furniture by mixing and matching pieces from different stores and style eras. Add vintage pieces to give the apartment an eclectic feel.
  • Get creative with the lighting. Lighting can make a big difference in the look and feel of the apartment.

As a landlord, it is also essential for you to understand the difference between wear and tear and damage. Wear and tear is the natural deterioration of the furnishings over time due to everyday use. For example, carpets may become slightly worn, furniture fade, and paint chip or scuff.

Landlords cannot charge tenants for these changes, as they are considered part of a property’s normal ageing process.

Damage is any deterioration beyond normal wear and tear caused by the tenant’s negligence or misuse. For example, if a tenant tears the fabric of a sofa or burns a tabletop, they may be responsible for repairing or replacing the damaged item.

It’s important for you to establish clear expectations with your tenants about what constitutes wear and tear and what constitutes damage. This can be done by providing a detailed inventory of the property and its furnishings and condition at the beginning of the tenancy.

Conclusion

Deciding whether to furnish or not furnish  your rental apartment requires careful consideration of both options. Furnished apartments offer convenience and broader tenant appeal but come with upfront costs and maintenance responsibilities.

On the other hand, unfurnished apartments require less upfront investment and allow tenants to personalise their space. Still, they may appeal to a smaller pool of tenants and pose potential damage risks.

To make an informed decision, landlords should consider their property’s characteristics, local market conditions, budget, and risk tolerance. Researching local norms and consulting with professionals like Crown Properties for advice can provide valuable insights.