To Furnish or Not to Furnish? – Advice for Landlords

As a landlord, one of the key decisions you’ll face is whether to furnish your rental property or leave it unfurnished. Both options have their benefits, and the right choice depends on a variety of factors, including your target market, the location of your property, and your long-term goals as a landlord. Below, we’ll break down the pros and cons of each approach to help you make an informed decision.

Furnishing Your Property: The Pros

1. Attracting a Broader Tenant Pool

   • Ideal for Short-Term Renters: Furnished properties are generally more appealing to tenants looking for flexibility, such as students, professionals on temporary assignments, or people relocating to a new area. Short-term tenants may not want to invest in their own furniture, making a fully furnished unit an attractive option.
   • Appealing to Busy Tenants: Many tenants prefer the convenience of moving into a property that's ready to live in. With a furnished unit, they don’t need to spend time or money buying furniture, which can make the property more appealing.

2. Higher Rent Potential

   • Premium on Rent: Furnished properties often command higher rent than unfurnished ones. Tenants are paying for the convenience and the added value of having furniture already in place, which can allow you to charge a premium.
   • Additional Services: If you offer furniture rental services (e.g., stylish sofas, beds, and appliances), it can be an opportunity to upcharge for luxury furnishings and provide tenants with more high-end amenities, which may boost rent.

3. Flexibility for Short-Term Rentals

   • Ideal for Airbnb or Vacation Rentals: Furnished properties are essential for short-term rental markets like Airbnb, where guests expect fully furnished spaces for their stay. If you're considering entering the short-term rental business, furnishing your property is a must to meet guests' needs.

The Cons of Furnishing Your Property

1. Higher Initial Costs

   • Upfront Investment: Furnishing a rental property requires an upfront investment in furniture, appliances, and accessories. Depending on the quality and style of the items you choose, this can be a significant expense.
   • Depreciation: Furniture will wear out over time, and as a result, you’ll need to replace items occasionally. These replacement costs can add up, particularly with high-traffic areas like living rooms and kitchens.

2. Maintenance and Damage Risk

   • Wear and Tear: Furnished properties are more susceptible to damage from tenants. If tenants are using furniture, appliances, or décor items, there’s a higher chance of things getting broken, stained, or worn out, requiring more frequent repairs or replacements.
   • Tenant Responsibility: You’ll need to establish clear guidelines about how the furniture should be treated, and some tenants may not take care of it as you would like, leading to potential disputes.

3. Limited Tenant Flexibility

   • Personalisation Restrictions: Some tenants may prefer to bring their own furniture to make the space feel more like home. Furnishing the property could restrict their ability to personalise their living space, which could limit the pool of tenants interested in your property.

Leaving Your Property Unfurnished: The Pros

1. Lower Initial Costs

   • Save on Upfront Investment: Unfurnished properties require no upfront investment in furniture, meaning you'll save on costs when setting up the property for rent. This can be especially advantageous for landlords who want to minimise expenses or for properties where furniture may not add significant value.
   • Less Risk of Damage: Without furniture to worry about, you can avoid the potential wear and tear that comes with tenants using your furnishings.

2. Appeal to Long-Term Tenants

   • For Tenants with Their Own Furniture: Many long-term renters have their own furniture and prefer an unfurnished property so they can move their items in and set up the space to their liking. This is often true for families or tenants planning to stay for several years.

3. More Flexibility

   • Less Need for Maintenance: With no furniture to worry about, you don’t have to replace items or handle repair requests for damaged furniture. This can reduce the ongoing maintenance requirements and potential headaches for landlords.

The Cons of Leaving Your Property Unfurnished

1. Possibly Lower Rent

   • Lower Rent Potential: Unfurnished properties may command lower rent than furnished ones because tenants will need to invest in their own furniture. Some tenants may choose a furnished unit over an unfurnished one for the convenience it provides, potentially leaving your property vacant for longer periods.

2. Longer Vacancy Periods

   • Longer Time to Find Tenants: Unfurnished units may take longer to rent out, especially if you’re located in a competitive market where renters are looking for convenience. In a market with many furnished properties, an unfurnished rental may struggle to attract interest.

3. Limited Appeal for Short-Term Renters

   • Not Ideal for Short-Term Rentals: If you're considering renting your property out on platforms like Airbnb or to short-term tenants, an unfurnished unit will likely be a hard sell. Short-term renters often need the convenience of a fully furnished space, and they may overlook an unfurnished option entirely.

Conclusion: What’s the Best Choice for You?

The decision to furnish or not furnish your rental property ultimately comes down to your goals, the target market, and the type of rental you’re offering. Here are a few things to consider:

• Furnish if: You’re targeting short-term renters, young professionals, or students who prefer the convenience of moving into a fully furnished home. It’s also ideal if you're willing to invest in higher rent and can handle the extra maintenance and repair responsibilities.
• Leave unfurnished if: You’re targeting long-term renters who are likely to bring their own furniture, or if you want to avoid the upfront investment in furnishings and prefer a more hands-off approach.

Either way, both options come with their own set of advantages and challenges, so weigh the pros and cons carefully before making your decision.