furnished rental properties

[Sylvia]

HI All,

I have an IP in my sights with great returns, but it is currently rented furnished. Does anyone have experience with this? I have never had a rental property that;s furnished and am concerned re the extra insurance and maintenance implications.

For eg, how often can you expect to replace things?

Thanks
Sylv

 

[Kevmeister]

A search on these forums will yield quite a lot of advice in this area.

Firstly, certain markets are more amenable to furnished properties than others (eg. student market, executive housing market). Perhaps even "nest-leavers" (young people renting for the first time).

The main issue I see is that a furnished property attracts a more transient tenant. It is easy for that tenant to "up and leave" since they don't have lots of furniture to move. An unfurnished property means the tenant must supply their own furniture, and it is somewhat of an upheaval for them to move.

Others have suggested that wear-and-tear on the furniture in a furnished property will exceed "normal" wear-and-tear since the tenants don't own the furniture so they are less likely to respect it, therefore treat it less kindly. Think motel/hotel room I guess.

 

[Jas]

I bought a one bedroom unit near a uni, paritally furnished it and waited for a student to take it.

A full time employee has been renting there for two years now and shows no signs of moving.

Can't pick who'll take furniture.

Jas