Furnishing a property for lease in Melbourne is a costly endeavour. Do you invest the money, or should you allow your tenants to furnish your residence? Offering a furnished or semi-equipped rental home has many advantages, including greater rent, but it also has some drawbacks. When considering whether to rent out your unit furnished or unfurnished, there are a few factors to consider.
The Advantages of Renting A Furnished Unit
- You have the right to ask for a higher rent: A well-furnished property leases for 25% to 75% more than one that is unfurnished. The greater the rent, however, the less unlikely the tenant will stay for the long term.
- Additional short-term rentals: If you want to be in the short-term rental market (6-12 month leases), furnished units make it easier for renters to find short-term rentals because they don’t have to relocate their furniture.
- Rent it out faster: Because tenants can avoid the costs and time associated with the furnishing, you may rent it out quicker. In addition, when all first-time tenants need to bring their items, furnished options are less intimidating.
- Require more respect: If you furnish and style the flat tastefully, it will demand more respect and attention from your tenants.
- Higher security deposit: For completely furnished flats, landlords might request a higher security deposit. For example, in some states, landlords can only charge a particular maximum deposit for unfurnished units while charging a more significant full deposit for equipped units. That is done to safeguard the landlord from paying for the replacement or repair of damaged furniture.
The Advantages of Renting An Unfurnished Unit
- Prolonged tenancy: Because the tenants have equipped the apartment to suit their wants and space, they may stay longer. Unfurnished apartments allow renters to personalize their environment.
- Happier tenants: Tenants are generally more satisfied when they can design and modify their own homes.
- There’s no need to ensure your furniture: You are not liable for any furniture or other belongings they bring to the property. So you don’t have to be concerned about wear and tear on your possessions.
- No holding costs: Carrying costs can be passed on to the renter, whereas when the apartment is furnished, the higher rent is expected to cover all utilities, cable, and internet, among other things.
The best course of action is to consult with a real estate agent familiar with the property for lease in Melbourne and provide valuable insight and advice. Visit www.onegrouprealty.com.au to learn more about our Epping real estate agents.