If you’re a new landlord, or are considering renting out your home, it may seem like a nightmare of details and decisions before you can begin making money from your property. While that may be the case, there are fundamentals that you need to decide before going into any detail. Like whether to rent an unfurnished or furnished apartment.
The majority of metropolitan apartments are rentals and good money can be made from them. A young, itinerant workforce may not want to buy in a city, or want to settle down just yet. That makes renting a must-have for a number of years. Those wanting to tap into that market need to decide early on whether to rent unfurnished or furnished. Both have pros and cons, which we are going to cover here.
Benefits of Renting an Unfurnished Apartment
An is almost a blank canvas. For longer term lets, unfurnished is a perfectly viable alternative. It’s cheaper for you as a landlord, as you don’t have to buy and maintain furniture, bed linen and kitchenware. This makes running an unfurnished apartment much simpler.
The other advantage of letting an unfurnished apartment is that the rental terms are often longer. If a tenant moves all their own furniture into your building, they are more likely to stay for a longer period of time. The investment of time and effort moving an apartment full of furniture around can be off-putting to some.
Benefits of Renting a Furnished Apartment
Furnished apartments are much easier to rent out and cover a wider market. Not only can you cater for individuals or vacation rentals, you can also appeal to the corporate renter. Having a wider market reach makes letting the furnished apartment easier than the unfurnished one.
The convenience of a furnished apartment in the eyes of renter should not be underestimated either. Having somewhere in a convenient location that they can move straight into is a significant benefit. Being able to move a couple of suitcases and have a ready-made home is more attractive than having to move furniture too.
You can also charge more for a furnished apartment. While the setup and maintenance cost is slightly higher, the long-term returns are also more. Just make sure you include everything in the security deposit and you should be fine.
The relative costs and benefits between renting out an unfurnished and a furnished apartment are straightforward. The decision as to which is more suitable in your particular situation can only be answered by you.
If you have the money, and have an apartment in a good area, going makes financial sense. It takes a little more management, but the returns are there if you want them. If you would prefer slightly lower gains but much less administration, the unfurnished may be the way to go.
Whatever you choose, go into renting with your eyes open and expectations in neutral and you’ll do okay. Expect too much too soon and you’re destined for a fall. Being a landlord is a lucrative business in the longer term that offers not a lot in the short.