Furnished Properties

Disadvantages

  1. You may significantly reduce your market when looking for new tenants because most tenants have their own furniture. This could result in your property sitting vacant for weeks (and maybe even months!)
  2. You will have to replace the furniture if it breaks. For example, if the fridge dies you'll need to repair or replace it. You could write a clause into the lease about not replacing specific furniture but it's not 100% watertight if you had to go to tribunal.
  3. You typically don't get the return on investment unless the furniture is already there and you're happy to replace it, should it break.
  4. It's extra work. You'll need to list the furniture in your condition report and include the condition of each one in the condition report. Then review the furniture at the end of the tenancy.

Advantages

  1. Some people (smaller market than vacant properties) will pay a premium for your furniture because it saves them from buying their own and moving costs. See below list.
  2. It may reduce your costs to move the furniture out (and back in again) if it's your own home.

Who might pay a premium for a furnished property?

  • A company looking to rent a property for their contractor or employees on a short-term position.
  • People who are looking to rent for a shorter period of time (under 6 months usually). For example, people who are building their own home, recently divorced or new people to the area (international).

Your options

  1. Go for gold: Advertise your place as Furnished with a rent amount the represents furniture included.
  2. Keep your options open: Advertise your place as Furnished and list the rent amount based on the property being vacant AND make it super clear on the top of your description: Home can be furnished for an extra $### per week. Therefore if people filter their search by furnished properties your ad will still appear in the search results and if they don't filter their search your property will come up too. Win-win. 

I always recommend putting a brief list of the furniture in your property advertisement. E.g. 
Kitchen utensils, microwave, fridge, 2 couches, 2 queen beds, 1 single bed, linen, cleaning equipment, 2 TV's, cupboards and drawers. The full list can be provided on inspection.