3. TO FURNISH OR NOT TO FURNISH?

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3. To furnish or not to furnish?

Do you have an apartment for rent in Penang that is meant for investment purpose? As a homeowner or a landlord, are you wondering if you should have your rental property furnished or unfurnished? Do bear in mind that there is no hard or strict rule saying a landlord should furnish a property. This article will guide you through whether you should furnish or not furnish your property.

Before you read further, it is essential to understand what fully furnished and unfurnished mean. A fully furnished property is a property that come equipped with all household items from kitchen to utensils and cutlery to beds and desks. An unfurnished property is a property that does not come with any furniture.

Pros of having your property furnished

1.           Higher monthly rental income

A furnished property will often attract short term tenants as compared to unfurnished property. That being said, having your property furnished could lead to higher monthly rental income. Potential tenants are able to justify the reason for spending more on rental as they do not need to spend much in buying furniture.

Do note that it does not apply to all tenants. For example, a rental property for students will most likely be furnished but rental cost might not be as high as normal rental property that is targeted at other target group.

2.                  More appealing to certain types of tenant 

A furnished property is one of a great ways to attract specific group of potential tenants as occupants, such as professionals and students. A furnished property is mostly attractive to business travellers that are sent to your area by their respective companies to complete a job. Professionals from a distance renting your property will prefer a furnished property as it will save them from the costs of buying new furniture or transporting furniture, as they do not have the time or inclination to go for furniture shopping. Furthermore, they will most likely sign a short term lease as well. This is a great opportunity to get tenants who are willing to pay a higher rental as it is a short term lease and all costs are bound by the companies.

As for students, furnished property seems to be a better choice as they do not need to fork out extra monies to buy furniture, Furthermore, you need not to spend a fortune on furniture as all they are looking out for is just a comfortable place to live in and study.

3.                  More in demand

Generally, there are more people looking for furnished apartment when it comes to renting a place. That being said, you will be spending less time worrying about unoccupied property.

Pros of having your property unfurnished

1.           Less hassle and maintenance

Most landlord with bigger apartments or houses tend to leave their property unfurnished as it is mainly catered for family that wish to have longer lease. By leaving your property unfurnished, you are able to save time and money in scouting for furniture. In addition, you do not need to worry about replacing the furniture when they are worn down. Therefore, the tenants will have to buy the furniture on their own and clean your place after that. Hence, you can save on maintenance as the tenants will then need to clean the property after the renovation or moving of furniture. You are also not responsible to insure the furniture that is bought by the tenants.

2.                  Make it their own

By renting out an unfurnished property, the tenants will then have to buy furniture on their own. This will then allow the tenants to make the property their own, since they have made an investment in buying furniture and moving their furniture into your place. As a result, they will most probably extend the lease and stay in your property longer. A furnished property is most likely to attract shorter lease term, therefore, higher tenancy turnover with higher rate of vacancy.

3.                  Not responsible for insuring furniture

As the furniture is bought by the tenants themselves, you are not responsible for any wear and tear in the future. You are not obliged to insure for the furniture or any other items that are bought by the tenants.

Of course, you could also opt to have your property partly furnished. For example, you could provide a sofa and dining table except for beds since most tenants prefer to use a bed that they prefer. Any wear and tear or damage is completely on the tenants’ own responsibilities to replace or to fix them.

In conclusion, the decision to have your rental property furnished or unfurnished still lies in your hand. Whether your rental property is furnished or unfurnished will also make a difference to your chances of getting a tenant. Also, you could decide whether to have your property furnished or unfurnished based on your budget and targeted group of tenants.

 

~ Bonde Senyum Riang ~