One of the most common questions we are often asked as real estate experts by landlords is whether they should rent out the furnished or unfurnished properties. The reality is that there is no clear-cut answer to which decision is the best. This is because it is based on the type of property, the potential tenant profile, and the property’s location. 

What Works Best for Ideal Tenant Lifestyle?

In the case of family renters, most of them will be carrying their own furniture and will be looking for a property where they can bring it along with them. These tenants often want to be surrounded by their collected possessions to feel at home. Also, the tenants seeking unfurnished properties also tend to be looking for long-term rentals, and this provides financial security to the landlords, knowing the accommodation will be let on for years.

However, there are a few market sectors which will be seeking homes that come fully furnished. For example- the tenants who are single or are relocating for a job might be looking for a fully furnished home. The young professionals would want to bring their suitcases with them, and nothing more, so fully furnished properties are ideal for such cases.

There are numerous benefits to offering a furnished or unfurnished rental property. The best thing as a landlord you can do is evaluate the pros and cons of furnishing the rental property to see how it matches the needs of renters.

Fully-Furnished Apartment

A fully-furnished apartment comes with all the furniture that a reasonable person would need to comfortably live in. It commands higher rent compared to other apartments. In such apartments, you can expect a sofa, coffee table, bed, lamp, dresser, dining areas, washroom with shower curtain, floor main and kitchen stocked with utensils.

Unfurnished Apartment

Unfurnished apartments can describe a range of properties from bare to almost fully furnished. For example, a semi-furnished room includes basic big pieces of sofa, bed, table, and chairs. You may expect a few pieces of utensils. On the other hand, an utterly unfurnished apartment does not include anything, and the tenants are required to carry the pieces all by themselves.

To help you, we have compiled a list of pros of furnished apartment rentals-

Higher rent

Furnished apartments cost more than unfurnished ones. Renters also feel that it is worth it as it saves them from purchasing furniture and other stuff. The price difference varies from city to city, and in many cases, the lease agreements for furnished apartments are shorter than the unfurnished ones. 

Higher Security Deposit

Landlords can charge more of a security deposit for fully furnished apartments. For example, in a few states, landlords can only charge up to a certain maximum deposit for unfurnished properties but a higher maximum amount for unfurnished properties. This helps protect the covering cost of replacing or repairing the damage.

Predictable Market Trends

As furnished apartments cost more, therefore landlords can automatically attract tenants who can afford them. If the rental property is close to the IT parks, chances are there are plenty of potential tenants looking for such rental properties, and landlords can benefit from catering to this market.

Cons of Furnished Apartment Rentals

High potential for damages

Furnishing an apartment means there are chances for damage, which means a greater financial burden, especially if tenants don’t take care of the property and furnishing inside it. Also, the repair and replacement responsibilities increase with time.

High turnover

This is another drawback of renting out a furnished property. Young professionals, singles and small families seek furnished properties as they are more likely to be transitory due to frequent job changes.

Storage cost

The landlords must arrange a storage facility if their own furniture can’t stay in the rental property. For example- if the landlord is okay with the fact that the tenants want to use their own materials, it is the landlord’s responsibility to move and arrange placement of their existing furniture. 

Finally, choosing to rent out furnished or unfurnished property entirely depends on the target market and should be your personal decision. As young professionals and students tend to rent furnished properties while families prefer unfurnished ones, landlords must decide what option they want.

Looking for a real estate expert to help you?

Hafsons is here to help! As one of the trusted names in the UK, we provide you with the best services and support required for renting out your properties. Visit our website and get in touch with our experts to learn how they can assist you.