When homeowners decide to rent out their unit, one of the first questions they ask is, “Should I furnish my rental property?” As a homeowner, you want to know how to get the most out of your rental property in order to enhance your monthly rental earnings.
Many landlords opt to leave their property vacant because tenants who move from one unit to another may bring their own furniture. This is one of the reasons why condo flats in Singapore are only partially furnished. This means that the home contains built-in amenities such as closets, storage cabinets, and a few kitchen equipments such as washers, cooktops, range hoods, and even refrigerators but without the presence of movable items.
Now you might be wondering which is better. To rent out a partially furnished or a fully furnished unit? Here are seven reasons why you might want to do the latter.
1. Your unit may attract a specific type of quality renter/tenant.
Furnishing your rental unit is a great strategy to narrow down your target market. This means you’ll have an easier time finding the perfect tenant to rent out your unit. Furnished rental properties specifically appeal to people who are moving from other countries. Shipping furniture may be a hassle for these tenants, not to mention costly. Buying new furniture, on the other hand, maybe out of their price range, therefore the convenience of having a fully furnished unit is often a better option.
2. The unit will have an advantage over competitors.
When a project achieves TOP and there are a hundred additional units in the development, and let’s say a large number of owners also want to rent out their units, there will be greater competition. This means that finding a suitable tenant might take a few months. Dressing up the unit will put your property at an advantage over your competitors. Keep in mind that tenants are searching for more than just a place to live; they’re looking for a certain lifestyle. This leads to the next advantage which is;
3. The rental unit will have a very low vacancy period.
When you decide to rent out your property, you want to keep the vacancy period short. Because you would be servicing the whole mortgage if a house is kept unoccupied for a long time, it is best to have it rented out as soon as possible. The previous pointers discussed are basically the factors that can help you achieve a low vacancy period.
Moreover, you’ll have a faster turn-around and will be able to fill vacancies more conveniently. If you are planning to rent out your unit to short-term renters, you will have a higher turnover than you would if you rent it out for long-term rentals. Tenants seeking shorter leases usually want completely furnished apartments. When your unit is fully furnished, there is a higher chance that you can quickly find a tenant when the previous renter leaves. It will be easy for the tenant to move out as well since they don’t have to carry a lot of furniture.
4. Your property will be ideal for tenants who want to move right away.
One reason units are rented out after the initial viewing is that the renter who visited the property may be searching for a move-in-ready home. When a renter steps inside a completely furnished flat and sees the actual furniture in place, they can picture the size of the rooms and instantly feel comfortable and at home. The furniture is what makes the rooms seem and appear more homely, and as a result, they will quickly build a connection to the place, making them feel that this is the ideal unit for them.
5. Less Maintenance Cost.
Moving furniture is a hassle and can cause potential damage to your unit. Whether it’s because of wall cracks and dents, carpet wear and tear, or scratched tiles. This usually happens when tenants try to move huge items of furniture into a small room that is not big enough or wasn’t designed to accommodate them. Many homeowners who pre-furnish their rental units discover that their property’s maintenance requirements are considerably reduced, which equals lower maintenance expenditures as well.
6. A furnished rental unit is easy to market on social media.
When looking for a property to purchase, everyone starts with social media. In comparison to an empty listing, a furnished unit is unquestionably more likely to attract possible tenants. The more appealing the unit, the easier it is to promote through social media. When tenants become aware of the property you are trying to rent out, you may receive more queries and offers, some of which may be greater than your first bid. Furnishing your rentals is also an excellent marketing tactic. It all comes down to putting your best foot forward in order to achieve your desired deal.
7. You can charge a higher rental fee.
Finally, if your flat is fully or partially furnished, you can request a greater rental charge than if it is unfurnished. You can charge a higher price of $300 to $400 or more for a furnished unit.
If you add it all up, you will get approximately $3,600 to $4,800 annually for rent. Think about it carefully and determine whether you want to rent furniture to spruce up your condo to get that much in return. On top of that, if your condo unit has recently been refurbished and/or has new fittings (taps, kitchen equipment, etc.), you might request a higher rental fee.
By now, you’re probably thinking to yourself, hmm… It appears that fully furnishing my condo unit will be more beneficial to me. Yes, it is true! Now the next step is to choose whether to purchase or rent furnishings. To provide some context, renting furniture does not have to be incredibly expensive. The total cost you’d pay over the course of a rental period is equivalent to the amount you’d pay if you bought these items in installments. In some conditions, it is even cheaper. To help you decide, read more about why you should rent furniture here.