What is a furnished rental, what are the benefits, what are the disadvantages.
Should you rent your property furnished or unfurnished? This is one of the most frequent questions we hear from landlords, and it’s an important decision for tenants too. There are advantages and disadvantages to both furnished and unfurnished rental properties in New South Wales, and it’s completely up to you whether you prefer the property with nothing but bare walls and carpet, or offer every kind of furniture, appliance, kitchenware and utility available.
Whichever option you choose, the decision to let a property furnished or unfurnished will make a difference to your rental, so Arnold Property has put together our guide to the advantages and disadvantages of furnished rentals, from the perspective of both the landlord and the tenant.
First, let’s talk about what a furnished rental property is
A furnished rental usually comes with all the furniture that an occupant would need to live comfortably. A furnished home will typically cost more to rent compared to an unfurnished rental.
There is no set standard for what must be supplied in a furnished apartment, but most furnished rentals are equipped with a bed, storage, living room furniture, dining room furniture and kitchen appliances. Some furnished rentals may even have curtains, floor rugs and cooking utensils. It’s always a good idea to ask the landlord or rental agency about what will be supplied before you sign a rental agreement.
In general, larger rental properties are more likely to come unfurnished, since tenants are likely to be older or may have families, along with their own collection of furniture. While smaller properties generally come furnished and typically attract younger, more flexible tenants such as young professionals or couples without children.
The pros and cons of furnished rentals
With the furniture already supplied, tenants can move into their new rental with ease. Renting an unfurnished property requires moving heavy furniture, and could be a daunting task that would chase off potential tenants.
Let’s face it; no one wants to go through the stress of moving often. With a furnished rental, tenants only need to pack their clothes and not worry about moving appliances or organising where their furniture should go.
Lower moving costs
One of the biggest perks of moving into an already furnished apartment is that tenants won’t have to worry about the expensive costs related to furnishing the property.
Hiring a removals company isn’t cheap either, but with a furnished home, tenants don’t have to worry about the additional costs of lugging heavy furniture from one home to another, leaving them to have a stress-free move at a lower cost.
Even in the best of times, signing a long-term lease can be intimidating. One of the most evident advantages of renting a furnished apartment is the flexibility it offers.
Furnished rentals are ideal for tenants who don’t plan to live in the area for a long period of time. Furnishing a rental takes a lot of time and commitment so unless the tenant is in it for the long-haul, it wouldn’t make sense for them to invest in furnishings for the rental.
Similarly, if the landlord only wants to rent out the property temporarily, a furnished rental with a short term lease is a great option for both parties.
Higher rental prices
Just like in most cities across Australia, furnished properties in New South Wales cost more to rent than unfurnished, so landlords can charge a higher price. While this may be off-putting to younger renters such as students and those with lower incomes, there has been a growing demand in the furnished rental market, with many renters feeling that it’s worth paying extra because it saves them from having to buy their own furniture for the home.
Higher security deposit
One of the biggest concerns for both landlords and tenants when renting a furnished property is the cost of damaging the furniture.
Furnishing a property means that there is more potential for wine spills or scratched surfaces, so the landlord is likely to charge more money for a security deposit while leasing their furnished rental. This is to protect the landlord if a tenant were to break or damage items in the property during their stay. While higher deposits offer security to the landlord, the price hike could be a deterrent for potential tenants.
Not to the tenant’s taste or standard
Just because it’s a furnished rental doesn’t mean that the home will be furnished to the potential tenant’s taste. If the furniture in the rental property is old, cheap or out of style, the tenant could be put off the rental straight away.
It’s always a wise choice for tenants to take a tour of the property before signing the rental agreement so they can get a feel for the style of the apartment. A couch may look great in photos but if it is super uncomfortable or has tears, it could be a deal-breaker!
How to find a furnished rental property in New South Wales
Once you’ve weighed up the pros and cons of renting a furnished property, it’s up to you to make an educated decision on what’s best for your circumstance.
The team at Arnold Property is more than happy to assist you with any questions you may have. Give us a call on (02) 4969 2600, email us at email@example.com or fill in our online enquiry form and we will be in touch with you shortly.