Fully furnished or unfurnished?
- Thread starter wll6568
- Start date
Fully furnished or unfurnished one bedder
Hi
That is a very broad question - there a multiple variables to consider and more information is required to offer a coherent helpful response.
From personal experience, I have learnt that you need to know who your target market is and offer the customer what they want. Accordingly, if your target market is a corporate client with high tenancy turnover then this option may be appropriate.
Younger people also like to rent furnished apartments who are initially starting out living independently however the risk is that there will be higher turnover (vacancies cost money).
People tend to stay longer if they live in a 'home' with their own furnishings, or pets (being pet friendly with safeguards in place is a winner however not for a one bedder).
Likewise, there is additional work to manage the 'inventory' of furnishings/appliances etc and furnishing needing replacement as a result of the usual 'wear and tear' experienced - more costs.
Also, from our experience initially it will give a higher rental yield to assist with holding costs if negatively geared
Some initial thoughts anyhow
Warm regards
Renee
Hi
That is a very broad question - there a multiple variables to consider and more information is required to offer a coherent helpful response.
From personal experience, I have learnt that you need to know who your target market is and offer the customer what they want. Accordingly, if your target market is a corporate client with high tenancy turnover then this option may be appropriate.
Younger people also like to rent furnished apartments who are initially starting out living independently however the risk is that there will be higher turnover (vacancies cost money).
People tend to stay longer if they live in a 'home' with their own furnishings, or pets (being pet friendly with safeguards in place is a winner however not for a one bedder).
Likewise, there is additional work to manage the 'inventory' of furnishings/appliances etc and furnishing needing replacement as a result of the usual 'wear and tear' experienced - more costs.
Also, from our experience initially it will give a higher rental yield to assist with holding costs if negatively geared
Some initial thoughts anyhow
Warm regards
Renee
There are pros and cons definitely, we just moved all our furniture out because it needed updating and we found it hard to justify the expense
Not only are you constantly replacing linen, but all items are now your responsibilty, for example people would say the washing machine was broken when it wasnt. The shelves in the fridge were broken, thats your problem, the tv reception is not good, thats your problem. The iron is dripping, thats your problem, the mattress is uncomfortable, you get the idea these are all real complaints we had.
On top of the higher vacancy period the property managers charged a higher management fee and inventory report fee. They treat the place like a hotel because they only stay for a short time, so carpet will last 5 years max.
When tenants want to leave they simply pack their suitcase and move to a place with shiny new furnitre and a bigger screen tv, its a much harder decision when you start to add in furniture removal costs.
You really need to consider how much extra rent you will achieve, and allow for all the furniture to be replaced every 3 to 4 years.
Not only are you constantly replacing linen, but all items are now your responsibilty, for example people would say the washing machine was broken when it wasnt. The shelves in the fridge were broken, thats your problem, the tv reception is not good, thats your problem. The iron is dripping, thats your problem, the mattress is uncomfortable, you get the idea these are all real complaints we had.
On top of the higher vacancy period the property managers charged a higher management fee and inventory report fee. They treat the place like a hotel because they only stay for a short time, so carpet will last 5 years max.
When tenants want to leave they simply pack their suitcase and move to a place with shiny new furnitre and a bigger screen tv, its a much harder decision when you start to add in furniture removal costs.
You really need to consider how much extra rent you will achieve, and allow for all the furniture to be replaced every 3 to 4 years.
If it's an executive style house that will attract corporate tenancies then furnish it this ie http://m.realestate.com.au/property-townhouse-sa-norwood-407956935
If it's a normal house that is in the suburbs not in a prestigious suburb, no sea views etc.., then furniture is a hiderence and many tenants will asked for it to be removed so that they can add their own.
With linen - only good when it's new, after the first year tenants will shove it in a cupboard and get their own.
If it's a normal house that is in the suburbs not in a prestigious suburb, no sea views etc.., then furniture is a hiderence and many tenants will asked for it to be removed so that they can add their own.
With linen - only good when it's new, after the first year tenants will shove it in a cupboard and get their own.
What part of the CBD is the property? Is there parking? How old is the apartment?
There's far too many variables to say what to do, you need to weigh up the pros and cons and of course the cost vs return - don't forget to take into account that furnished properties tend to be vacant a little longer as well.
There's far too many variables to say what to do, you need to weigh up the pros and cons and of course the cost vs return - don't forget to take into account that furnished properties tend to be vacant a little longer as well.
Depending on where you are- one bedroom furnished can be good for people in transit in life. They are popular with newly separated people, until they work out their future. They can be good for students.
I had a block of eight 1br units in Queanbeyan- they were also popular with people working temporarily in Canberra where the company did not cover expenses.
I had a block of eight 1br units in Queanbeyan- they were also popular with people working temporarily in Canberra where the company did not cover expenses.
