The differences between renting a furnished vs unfurnished property.
Category Renting
Most of us theoretically understand the difference between furnished and unfurnished property. But what exactly does "furnished" entail? Property Tree looks at the difference when renting a furnished and unfurnished property from both the tenant's and the landlord's perspectives.
Let's look at what constitutes a furnished property and what your potential tenants should expect to see when coming for the viewing. Usually, you would expect to find a dining room table with chairs, couches with a coffee table, and lamps. The kitchen should be fully stocked with dishes, pots, utensils, appliances, and glassware...
The Landlord: Furnished property
There are various pros and cons when offering a furnished property, let's look at the pros.
Higher Security Deposit:
Considering the possibility of breakage the landlord has the option to charge a higher security deposit, this is all to protect the landlord in covering the cost of replacing or repairing damaged furniture. You also need to bear in mind that most of your tenants will settle for a shorter lease agreement as these are possibly people that need the property due to being in the city for work or study reasons.
Furnishing Costs:
Some of the challenges you may come across include spending more money to furnish and decorate the place as well as the need to consistently update the decor every now and again. Additionally, have regular inspections of the property just to know if the furniture is still in good shape and whether or not other accessories need replacing.
The Tenant: Furnished Property
Considering most people that rent furnished properties are either moving for work reasons or short term. It is more convenient for them, especially when moving to their first property. Leases tend to be shorter and average anywhere between 3 to 6 months depending on the
On the other hand, moving to a furnished property may require time to adjust to a setting that isn't truly their own. They will need to be very mindful that it is not their furniture and that they are responsible for it. If there are any damages there will be a deposit deduction. The rent and deposit they pay will be higher considering the furniture that you are providing.
Unfurnished
What then constitutes an unfurnished property? is it just an empty space with an echo? Generally speaking, the property should have basic kitchen fixtures, curtains or blinds, bathroom fixtures, fitted carpets or other types of flooring.
The Landlord: Unfurnished Property
Without furnishing the property your deposit will not be as high and you could attract a lot of tenants that are looking to stay for longer periods on a more stable basis. You will not have to worry about any damage to your furniture or having to replace worn items. Although you may have to paint the property as tenants come and go. At the end of the day when you decide to sell the property, you won't have to clear out anything, which cuts costs for you.
First-time leasers may not be interested in the property due to the cost of buying and moving furniture. You could also face more damage during each moving process when heavy furniture is being shifted in or out of the property. These tend to be your door frames, walls, and flooring.
The Tenant: Unfurnished Property
Tenants looking to lease for the long term will choose unfurnished as it's more cost-effective in terms of rent. You won't have to worry about your furnishings being damaged. Plus an unfurnished property gives them the opportunity to buy whatever they want and make the place feel like home.
First-time renters will likely avoid unfurnished properties due to the expenses attached to moving. You will be responsible for moving all your belongings at the beginning and the end of the tenancy. Lastly, depending on the location and the type of property, they may come to the conclusion that they're not actually saving on rent.
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Author: Bryce Anderson