SHOWING ARTICLE 58 OF 142

Pros and cons of letting a furnished property

Category Industry News

Deciding whether to rent your property furnished or unfurnished is a common question asked by landlords and investors.  We outline some of the pros and cons of letting out a property furnished.

Pros

Higher Rentals

Tenants are happy to pay a premium for the convenience of a fully furnished property. However, it is important to note that furnished properties will only add value if you have the right type of property in the right location and are targeting a specific type of tenant. Do your homework and assess whether there is demand in the area for furnished properties. If your property is well situated within close proximity to a CBD such as Sandton or Rosebank, main arterials, universities and key amenities, it is definitely worthwhile considering renting your property furnished.

Timeframe

A major advantage of letting a furnished property is that your tenant can move in immediately. This makes the property highly attractive to first-time renters, corporates and overseas tenants.

Assets

Once the lease has ended you still own the furniture, which you could use for yourself, sell or use for the next tenant.

Cons

Higher turnover

Furnished properties are often required for short- term rentals meaning there will be a high turnover of tenants.

Expense

Although you might be able to charge a bit more in monthly rent for a furnished rental, you might also incur additional expenses. As the landlord, you'll be responsible for ensuring your property is adequately furnished, often meaning a significant capital outlay. You will also be required to maintain the furniture, homeware and appliances.

Smaller tenant pool

Many couples and families already have their own furniture from previous rentals, and some tenants simply prefer to furnish the properties themselves. If you are planning to furnish your property, make sure you style it in a way that appeals to most tenants.

Author: Adrienne Hersch Media Team

Submitted 04 Dec 18 / Views 508