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What to consider when deciding to furnish your investment property
I get asked so many times: Should we rent the property furnished or unfurnished?
There are many advantages of furnishing your investment:
1. Higher rent
The better the property is presented, the more rent you will be able to achieve. High turnovers allow greater flexibility both with pricing and also provides the landlord with more frequent opportunities to inspect their property.
Some of the most important things to consider before deciding to furnish your property is what kind of tenant you will be targeting? Does the location of your property appeal to your target? Is there a lot of other furnished properties in the area and will the demand be high?
2. Furnished properties generally attract short-term leases
Students, families on vacation, or corporate professionals who are on contract are generally interested in short term furnished rentals. These types of tenants are happy to pay higher rent for the convenience of having a furnished home.
3. Tax Advantages
There are plenty of tax advantages when renting a furnished home, I recommend that you get the advice of a tax accountant on what items can be written off immediately and which items will be written off over their estimated lifespan.
4. Less Wear and Tear
Furnished means no removalists and less damage to your most valuable asset.
It’s important to keep in mind that a furnished rental will require good quality modern furniture that is welcoming and easy to clean. Keep in mind that all furniture, appliances and items in the property must be maintained or replaced and updated by the landlord regularly. Using neutral colours such as greys or browns will appeal to most. Try to avoid expensive antiques and electronics or decorative items of sentimental value.
It’s recommended that you obtain landlords insurance which will cover you for damage to furniture and contents. Although deliberate damage is rare, it’s better to be prepared, just in case.
Should you require a sample inventory of a furnished property or would like to know what your property is worth, give me a call today at 9199 7501.
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Meet Liza Freitas - Your Property Specialist
Liza Freitas, Managing Director of Exclusive Property Group, has extensive experience in property, specifically in residential property sales and property management.
Liza began her career working alongside some of Sydney’s leading property agents. And it is this unique mentoring, from successful and well known property specialists, that helped enhance Liza’s professional instincts and facilitated the development of her extensive knowledge and understanding of the property market.