So you’ve a great, centrally-located property – one you’ve furnished carefully in your own unique style. The time has come for you to lease this property out: so should you attempt to lease it fully furnished, or is vacant the better option?
Making the important decision to lease your investment property fully furnished or vacant depends on many factors – amongst them, who your ideal tenant is, current market demand for similar competing properties, and your own preferences as a landlord. In the latest Think Property & Co blog, we unpack some of the key market trends that may influence your decision and explore the must-dos if you’re looking at leasing your investment property fully furnished.
Market demand greatly depends on your property type and location, so it’s important to assess current competing activity within your community to ensure you won’t struggle to fill the property. 75% of tenants are looking for a long term rental that they can make a home, which regularly means they wish to bring their own furnishings and style the property to suit their needs and individual taste. As a result, choosing to lease your investment fully furnished means you are appealing to a much smaller pool of tenants who are more likely to be searching for short-term accommodation. We suggest consulting with your property manager when making the decision to lease fully furnished: they will have market insights and considered strategy on the best way to attract the right tenant for your asset and needs.
THE RISE OF FLEXIBLE ARRANGEMENTS
Traditional rental properties which are offered as fully furnished are no longer as appealing to tenants, who have the option to Airbnb for flexible periods of time. They are less willing to sign longer-term leases for fully furnished residences when there are less onerous arrangements available. In addition to this shift towards flexibility, fewer premium corporate clients are seeking furnished long-term accommodation for their employees. In the changed economic environment, we have noticed a marked drop in demand from corporates for fully furnished accommodation options.
SOCIAL MEDIA AND PICTURE PERFECT PROPERTY
With the increase of carefully curated Airbnb properties and tastefully decorated short-term leasing options, it’s no longer appealing to tenants to live with old furniture. Tenants seeking short-term accommodation are looking for beautifully styled options that cater to all their needs. If you are choosing to fully furnish, work with a stylist or similar to make sure your property looks sleek and appeals to a wide client base.
… KEEP IN MIND
- Research current market demand for similar properties in your area. It’s a good idea to talk to your property manager about their recommendations and whether they think your property will offer a better return furnished or unfurnished.
- Take the time to tastefully style the property and consider consulting a stylist to ensure it appeals to your desired tenant.
- If you do choose to lease fully furnished, be aware that it is important to insure your belongings appropriately.
- Don’t forget to adjust your rental expectations if the property is remaining unlet for an extended period of time – particularly in a winter market.