For a property owner, the question of whether one should furnish the property or not before renting has been residing in the property business since eternity (well, that’s an exaggeration but you get what I’m trying to say). There are undeniably pros and cons of furnishing your property before renting it out and the same goes to leaving it unfurnished. There is also no definite answer as to the extent of which how much furnishing is needed for a property to be considered as furnished. As a property owner, you need to consider various factors before deciding to furnish your house especially the type of tenant you wish to attract.
Here at ezbuy we list down some of the pros and cons of furnishing your property before renting it out.
The Pros of Furnishing Your Property
- Ready to move
Furnished property usually has all the basic necessity needed for a house to be livable. This includes basic furniture and home appliances such as a bed, desk, couch, water heater and etc. having a furnished property will attract potential tenants who are looking for a property that are ready-to-move especially those who do not own furniture.
- High demand
Furnished property is high in demands due to its limited availability and the convenience it offers. If your property is located in a highly saturated area and is near to education institutions and business districts, you will attract more students and young working professional. These group of potential tenants are always looking for a furnished property because they can move in almost instantly and move out with ease and convenience.
- Increase rental rate
This has to be the main factor for a property owner to furnish their property. Furnished property is usually rented out in higher rate if compared to unfurnished property. Therefore, it might appeal to those who wish to have a handsome amount of passive income at the end of the month.
- Tax liability
Property owners can benefit from certain tax deductions for owning certain items and furniture in your rental property. Since furniture or purchases you made for your rental property are tax deductible, this prospects can be great for you to save money on taxes.
The Cons of Furnishing Your Property
- Short-term rentals
Though a furnished house is generally of higher demand, it would most likely cater to or attract short-term tenants. Expatriates for one, would fall into this category as they would be based in Malaysia for a certain period or until their project completes. Another fine example, would be first-time movers or couples waiting on the completion of their new apartment hence renting your home temporarily.
- Risk for damaged property
Admit it, not all tenants are responsible. It is even more difficult to maintain all your furniture and appliances in pristine condition if there are so many hands involved in using them. Although you might impose certain rules for damaged items, not all damage are caused by the tenants. Some of the items just need to be replaced due to too much wear and tear.
- Higher maintenance & cleaning responsibility
It is easier to maintain an unfurnished house than a furnished one. You have to take into consideration of replacing damaged items. A furnished house can also be a hassle when transitioning between tenants. Apart from the general cleaning that you have to do when owning a property, you also need to check your furniture for damaged items and clean them one by one. It might be too much of a hassle for some of you.
- Limited personalisation
Since everything has been provided by the owner, tenants will have limited space to add personality to their rented property. Some owners also impose certain rules on their furnished property making it difficult for tenants to add their personal touch. Thus, tenants are unable to recreate that ‘homely’ vibes in their rented property.
Other Things to Consider Before Furnishing Your Rental Property
- Furnishing Cost
Before deciding to furnish your property, you must decide how the extent of furnishing that you wish to do to your property. There is a certain property owner who opts to partially furnish their property to balance out the pros and cons. Those who choose to furnish the property must decide what they can do and buy to increase the value of the house with minimal cost. You might consider buying furniture sets to get various pieces with a bargain price.
- Furniture Durability & Storage Pieces
Property owners who wish to furnish their property must also buy items that are more durable and last longer. They should buy sturdy furniture that is less prone to damage as well as storage pieces such as drawers, wardrobe and shelves to provide spaces for tenants to store their belongings.
For decoration and wall colour, stick to natural hues that do not appeal to one particular gender and age group such as bright pink which might be a turn-off to some male tenants and bright red which might be too vibrant for older tenants. Adding rugs and cushions may add warmth and comfort to the property but try to stick to a universal design that appeals to all. Stay up to date with our Home Fashion Collection.
- Target Market
As a property owner, you must also consider the target market that you are aiming for. If you do not have any specifics, having an unfurnished home might suit you better since furnished house appeals might narrow down the potential clients. Furnished house mostly attracts short-term tenants such as students, young professional and first-time movers. If you wish to further specify your target market, you can furnish and decorate your property in such a way that it attracts that specific pool of tenants.
After weighing the pros and cons as well as taking into consideration several other factors, we hope this article has given you some food for thought with regards to home furnishing and property rental. To furnish or not? Well, it all depends on what you wish to gain (and willing to lose) in the process. But for all things furniture we at ezbuy are here to help! Check out our Home & Furnishing Concept Store and enjoy great deals for your home! Furthermore, you can ship all your bulky furniture at a flat rate of only RM8.80 with our ezbuy Prime service! Sounds good? Try it out today!