Should I Rent My Property Furnished or Unfurnished?

We often receive the question ‘Should I Rent My Property Furnished or Unfurnished?’, which has both definite pros and cons. While the decision will often come down to where your property is located, the type of renter you’re likely to – and want to – attract, as well as the type of property, there are a whole range of things to consider:

Furnished Property Inclusions

All properties must comply with Victorian Rental Laws and contain permanent fixtures such as cooking facilities and heating. When it comes to a furnished property you can offer fully or partially furnished where you will be providing items such as beds, sofas, dining tables and chairs, as well as perhaps some white goods.

Before you decide, it’s a good idea to weigh up the pros and cons of each option.

The Pros and Cons:

1. Renting Property Furnished – Pros:

• Higher rental potential – especially when it comes to short-term or executive-type rentals
• Offers more appeals to specific renter groups – i.e. students, corporate renters and new migrants

2. Renting Property Furnished – Cons:

• Higher upfront costs to furnish the property
• Increased wear and tear on furniture and appliances
• More management is involved – i.e. inventory, replacements and maintenance
• The nature of the renter is usually shorter term so there tends to be higher turnover

3. Renting Property Unfurnished – Pros:

• Tend to attract longer-term renters as they want to bring their own items to their home
• Lower maintenance as there is less to look after and/or replace
• Lower set-up costs
• Simpler property management requirements

4. Renting Property Unfurnished – Cons:

• Lower weekly rent as compared to furnished properties
• Longer vacancies in some higher turnover markets
• Limited appeal to some renter types – i.e. students and newcomers

Before You Decide, Furnished or Unfurnished

Before you decide, ensure you consider the location of your property, what type of property it is – i.e. house or apartment, the resources available to you to look after maintenance and your overall investment goals.

If you are not sure whether to go furnished or unfurnished for your property, contact us for a comparison of rental expectations, what type of furniture might be best to include as well as what is right for your particular property.

So, should I rent my property furnished or unfurnished?

Ultimately, deciding whether to rent a property furnished or unfurnished depends on various factors, including your investment goals, the local market, and your willingness to manage additional responsibilities. Generally, unfurnished rentals are preferred for long-term leases and can attract a wider range of tenants in areas with strong demand. But this is not always the case. As your property investment partner, we’re always here to help, so reach out to us at enquiries@livingmelbourne.com.au