Question about furnishing vs unfurnished bedroom

Hi,

I recently bought a flat at the Docklands, Melbourne. The apartment has 2 bedrooms, 2 bathrooms, 1 car space, on the 29th floor with 270 degrees of unobstructed views to the waterfront and city skyline. Tenants will have access to a commercial sized gym - something most other flats can't offer. For rental it is valued at $600 to $650 unfurnished and $700 to $750 furnished. Currently it is tenanted (unfurnished) returning $600 per week.

I want to move into this place so I can be closer to work, the 60 day eviction notice has been issued. My plan is to take up the master bedroom and car space, put in some modern furniture and whitegoods and charge $280 per week including expenses for the other room.

So my question is, should I buy a double bed too and increase the rent to $300 per week? Or leave it empty and let them bring in their own bed? Also is $280/300 a good deal considering the place will be furnished and I'm taking the master and car space?

EDIT: Oh right, I did do a comparison with other flats around the docklands. It's a bit hard to compare as a lot of ads are looking for tenants who wants to share in the same bedroom, sleep living room, kitchen etc. Those with similar arrangements I've seen in the last month were:

- furnished br with shared bathroom, no car space, nice views for $280 inc expenses.
- unfurnished br with shared bathroom, no car space, nice views for $260 inc expenses (this one was females only).
- unfurnished br with shared bathroom, no car space for $240 exc expenses.
 
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I think you've answered your question there.. if similar rooms are renting for $280 with a shared bathroom, you should get $280-300 as you have 2 bathrooms.

I'd suggest furnishing with a double bed, bed side table, lamp etc. I think the type of young professional that is willing to pay $300/wk is unwilling/too lazy to buy and transport furniture around..

Have you seen your accountant about claiming a portion of the interest, body corp fees, rates etc as deductions? seeing half the apartment is now a investment property ;)
 
Hi,

Tenants will have access to a commercial sized gym - something most other flats can't offer.

How many person can access to the gym from one flat?? Any restriction on that.
Why most other flats can't offer ( just curious....)

KK
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vbplease: Thanks for your suggestion, a double bed in that case makes a lot of sense. Do you think that is better or would two single beds be more suitable as a lot of people don't mind sharing a room? I think it's much easier to lease out half a room for $150 than one room for $300 pw?

K4K4M: As long as you can prove you live in the flat then you can use the gym, so all you need is the key. The reason I say most other flats can't beat it, is that I've seen more than a dozen other flat buildings around the area, all of the gyms I've seen are smaller than half a tennis court and none of them have free weights. Heck, the Gym here is larger than some of the ones I used pay two grand a year for.
 
I think there are some pros & cons with the double/two single bed option..

Chances of finding two strangers to share together - rich foreign students maybe, young professionals highly unlikely i think? With two singles there is twice the chance of getting a annoying housemate. On the other hand, you could charge a little more as there would be more wear and tear..

I'd do a bit of research on re.com, gumtree and see which is in more demand. Is there a college/uni nearby? If so, marketing it towards the rich foreign students would be a winner.. make sure there is internet etc.
 
It seems there are more ads offering shared room in that area, which also disappears more quickly than single furnished rooms. The flat is not close to any universities but is very close to a lot of bank office buildings and attracts lots of professionals. Based on your advice I think the best option would be a furnished room for one :)

I have spoken to an accountant about this, he says there are two ways I can go about this. One I can pocket the 300 per week and not report it to ATO, something about the tax law changing two years ago that allows this. But I have to state clearly to the tenant that the rent is not tax deductable, also I cannot claim any costs including interest and must declare the place my ppor.

On the otherhand I can claim my ppor is elsewhere and claim all of it.
 
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