Should you furnish it?

[Starofdavid]

I spoke to a agent yesterday told him my plan to furnish a IP when I get one so I can get more rental income, put a fridge and a few beds etc then he said it won't work as tenants like to have their own mattresses and not to buy a fridge because if it breaks then I'm responsible to repair it.

I thought by adding say wardrobes lounge etc it would encourage more tenants??

 

[vaughan]

I spoke to a agent yesterday told him my plan to furnish a IP when I get one so I can get more rental income, put a fridge and a few beds etc then he said it won't work as tenants like to have their own mattresses and not to buy a fridge because if it breaks then I'm responsible to repair it.

I thought by adding say wardrobes lounge etc it would encourage more tenants??

First thing is to know your target market. You sound as though you don't.

Built in wardrobes might add some value but so might aircon. Your property manager should advise you.

 

[cimbom]

If it's located in an area where there is a large transient population, it may work. In most areas, you'll likely lose tenants as most people have their own furniture and would prefer lower rent. You are also responsible for repairing or replacing the furniture if anything happens to it.

 

[Starofdavid]

Talking to a lot of real estate agents lately some of them are young Filipino guys and some just don't know, I prefer to ask on here.

I guess your right about where the location is.
I guess if I was buying in an area where a lot of single mums I may look at supplying a FF IP.

 

[beachgurl]

Talking to a lot of real estate agents lately some of them are young Filipino guys and some just don't know, I prefer to ask on here.

I guess your right about where the location is.
I guess if I was buying in an area where a lot of single mums I may look at supplying a FF IP.

Why do you think single mums want FF over any other demographic?

 

[Williamyuan]

I guess if I was buying in an area where a lot of single mums I may look at supplying a FF IP.

Moreso international students & working holiday etc.
What suburb?

 

[superAndrew]

One thing to point out is that furnishing a place and/or including utilities might make the property more appealing to rent to the right demographic, however it also makes it easier for tenants to move out. They don't have to worry about canceling utilities and moving their furniture, etc

Andrew

 

[fullylucky]

I spoke to a agent yesterday told him my plan to furnish a IP when I get one so I can get more rental income, put a fridge and a few beds etc then he said it won't work as tenants like to have their own mattresses and not to buy a fridge because if it breaks then I'm responsible to repair it.

I thought by adding say wardrobes lounge etc it would encourage more tenants??

you need to grab a piece of paper and draw a line down the middle and weigh up the pros and cons for each. On the left put Furnish and on the right put Not furnish.

as other users have mentioned it depends on your target market. and which suburb the property is located. if you provide furniture it makes it real easy for tenant's to "slide out" so you get more transient tenants. that might not be good since you might lose rent in between tenants. (frictional rental loss).

if you tenants have their own furniture it's a big hassle for them to move out once they move in. there's costs.

you also need to keep in mind if you provide something at the start of the rental you then are responsible for maintaining it. if you supply a toaster and it breaks you need to fix it or buy a new one.

if you buy nice furniture and appliances then tenants aint gonna look after it. you may think they are nice people will treat your stuff with respect but they won't.

if you are targeting transient people then have it furnished. if i were you i would just use gumtree and get some second hard furniture and stock up slowly over time. get stuff that's good enough to pass off as nice furniture but nothing that looks too old.

 

[Ed Barton]

It costs a couple grand to furnish a small home. Do really want tenants who can't afford a couple of grand?

Your plan might work in the right area for short term, or per room basis, otherwise it sucks.

 

[Xenia IM]

Some properties - ie executive style houses can be furnished and targeted to a niche market.

For the general tenant market adding furniture becomes a pain in the rear as most tenants will ask you to get rid of it and will not pay more than market value just because your furniture is in there.

I agree - don't do it unless you have money to throw away on storage or experience vacancies.