The Complex Role of Furniture in Rental Properties

The Complex Role of Furniture in Rental Properties
Furniture placement in rental properties is a nuanced subject that often perplexes landlords and property managers. The decision to include furniture can either attract or deter prospective tenants, depending on various factors such as the property type and the target rental market. As a property manager at Alexa Real Estate, I've navigated these complex waters for numerous clients, developing a nuanced understanding of when and how to utilise furniture in a rental setting.
Furnished vs Unfurnished: Attracting the Right Tenants
Many tenants already possess their own furniture and are looking for an unfurnished property where they can make their mark. For properties aimed at attracting long-term tenants, including furniture can actually serve as a deterrent. These tenants usually prefer the flexibility and personalisation that an unfurnished property offers. However, if you're targeting an executive market, or utilising your property for short-term rentals like Airbnb, furniture becomes essential. A tastefully furnished property in such cases not only draws in tenants but can also command a higher rental price.
The Financial Implications for Landlords
If you decide to go the furnished route, be prepared for additional costs. Furniture is subject to wear and tear, and should a tenant request its replacement, this typically becomes a cost borne by the landlord. This factor is often overlooked but can become a significant expense in the long run. Moreover, the style and quality of the furniture can set the tone for the property and can either attract or dissuade potential tenants. Therefore, the initial costs, as well as ongoing maintenance, need to be carefully considered.
Strategic Inclusions and Lease Specifications
While including furniture can be a calculated risk, there are instances where leaving certain appliances can be beneficial. Items such as washing machines or fridges that fit a space perfectly might enhance the property's appeal. However, it's crucial to explicitly exclude these items from the lease agreement. Doing so can safeguard the landlord from any future financial burdens relating to maintenance or replacement of these appliances.
The decision to furnish a rental property is far from straightforward and is heavily dependent on the target market and type of rental. Furniture can add value and attract a specific kind of tenant but can also deter long-term tenants and incur additional costs for the landlord. By being strategic and meticulous in this aspect, landlords can not only minimise costs but also maximise the property's appeal to the right kind of tenant.
About the Author:
Xenia Ioannou is the CEO of Alexa Real Estate, a leader in property management services. With extensive experience in real estate investing and property management, Xenia brings a wealth of knowledge and expertise to the table. For more insights and services, visit www.alexarealestate.com.au.