Matt Phillips,
Sales Agent at Image Property.
Should You Furnish Your Rental Property?
[lwptoc]With the Brisbane rental vacancy rate currently the second highest in the country at 3.3%, the market is well and truly favourable to tenants. When a rental vacancy rate is high, tenants are flushed with an increase in choice and have more power in demanding better lease terms and rental prices.
With an influx of units now on the Brisbane market, and more yet to come, it is natural for landlords and investors to want to try and maximise both their rental return and also the desirability of their property in a landscape brimming with rental ads. With competition at its peak, some investors may be considering furnishing their investment to drive desirability as well as an increased rental price. But is this the right option for you?
As Sian Carling from our Aspley office discusses in the video below, furnishing your investment property isn’t always the right option and there are a range of factors you should consider before taking the leap.
Suitability of your investment is the biggest consideration with furnished rentals typically being found between 1km and 3km from the CBD, generally targeting a transient demographic. A demographic that don’t want to purchase furniture or be in an area longer than 6 to 12 months may see a furnished rental as highly desirable. If you have a rental property near the CBD and your market are students or travellers then this may be a viable option for you.
It is important to note however that a furnished rental is not a “set and forget” scenario with increased responsibilities for landlords. There are increased costs when it comes to responsibility with regards to maintenance. With a furnished property, landlords are accountable for 100% of the maintenance for items within the property, in addition to the property itself.
So, even if your apartment is suitable in its location and demographic, before you rush out to IKEA or Kmart and stock up on furniture, consider whether the purchase and maintenance costs will eliminate any gain made from an increase in rental.
If you have any further questions or wish to discuss furnishing your rental please get in touch.
