Deciding on whether to rent your property furnished or unfurnished very much depends on what type of property you have, the location and what type of tenants you are wanting to attract.

There are a few more variables to throw into the mix, such as how you want to set up the property financially and what the demand is for furnished properties. For example, property close to the university is likely to attract students, and they are often looking for a furnished property.

There are a number of advantages and disadvantages to renting out a furnished investment property which you will need to consider. Here are some of them:

The pros of letting a furnished property

• Tenants pay more for fully furnished properties
• There may be tax depreciation deduction benefits associated with the furniture
• Deductible expenses may also include both the cost of the replacement item and costs of disposal of the old item

The cons of letting a furnished property

• Depending on the property, there is sometimes a higher turnover rate with tenants. This may lead to an increase in costs such as advertising for new tenants and down time when the property is empty and not earning an income.
• As furniture will need to be replaced/updated every few years, running costs of the property may work out to be more in the longer-term
• It takes time to maintain and monitor an inventory list of all the items
• Furniture is the landlords’ responsibility for replacing or fixing items quickly if they are not working
• While contents insurance on the furniture and other items isn’t a legal requirement, many landlords take it out to give them peace of mind the property is covered.
• Some furniture will have to adhere to certain safety standards
• The landlord’s furniture may put not be the choice of prospective tenants.

Then there’s the question of what furnishings to include? White goods only, or is everything in but the bedding?

Renting out a furnished property does take some thinking about, so come and talk to us and we can talk you through some options. We also suggest you talk to a financial specialist who can advise on what the financial implications are for your personal situation.

If you want to know more about what makes for a good investment property, and some more property management tips our experienced team would love to hear from you. We’ve helped people live their financial dreams through property so if you would like to know more about our services, simply give us a ring on 02 4954 8833, send us an email to mail@apnewcastle.com.au or pop into our Cardiff office for a chat.