Furnishing your Investment Rental Property - Do I, Don't I?

You have purchased an investment property.  After a quick tidy up you are ready for your property manager to list for tenancy.  Question is, do you furnish?

As part of the marketing strategies and business planning, landlords must determine whether to rent out their residential properties as fully furnished, partially furnished or as empty and unfurnished unit. Each one of these options has its own set of pros and cons which landlords should weigh very carefully against each other, against the current rental market, against the functionality and purpose of the property itself and finally, against the targeted tenants.

Fully Furnished Rental Units

Understandably, furnished units charge higher rent and they have little to no competition. However, landlords will need to invest more in maintenance and should also realise that the pool of tenants is fairly limited.

• Vacation rental marketing or vacation homes and  apartments are probably the most compelling reasons for landlords to fully furnish their units. If the property is intended for short term leasing (usually six months or less) to vacationing tenants, by all means, the units should be fully furnished and attractively decorated. After all, people on vacation will not be carrying furniture along with them and they will want to be comfortable in a pleasant environment.
• Homes and/or apartments intended for business people should be furnished elegantly and provide all the personal and business amenities available at hotel standard (internet/wireless access, network TV, linen and bedding).
• These units are usually rented out for anywhere between several days to a couple of months and they are most often located in business districts and near airports.
• Historic and vintage apartment units and homes should be furnished to match the unique exterior. Since such furniture would usually include costly antiques, the targeted tenants should be adults who could appreciate such fineries.
• Homes and/or apartments which valiant landlords are willing to rent to students near college campuses should be furnished with sturdy furniture that will, on the one hand, survive lots of abuse while, on the other hand, be cheap enough to replace when its needed. Décor much like college dorm rooms is appropriate for such units.

Partially Furnished Units

• Newlyweds and young people who have had the time to accumulate some furniture but not enough for an entire household would most likely appreciate partially furnished apartments which usually include kitchen appliances such as a stove, refrigerator, dishwasher; white ware such as a washing machine and dryer; and maybe a piece or two in the living room and/or bedroom.
• Many singles of all ages and both genders have amassed a few pieces of furniture but would, in all probability, welcome whatever else landlords can offer. It is advisable for landlords to provide attractive furniture but as generic as possible so that it does not clash with that which is brought in by the tenants.

Empty, Unfurnished Units

When opting to rent units as unfurnished, landlords must realize that the pool of tenants is virtually limitless but so is the competition.

• The great majority of tenants strive to make their rental units as homely as they possibly can and they, therefore, want to personalise them. This means that they would want to rent empty, unfurnished apartments and/or homes and bring in their own furniture and miscellaneous decorations.

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