In past times tenants were hard to find and anything extra to attract them was a bonus. But nowadays vacancy rates are at historic low points. So this is hardly necessary for a start.
Even if you do furnish your property, there is every chance the tenants may not find your tastes agreeable. Leaving the property vacant means that your prospective tenants will at least be wealthy enough to have their own furniture. And there won’t be the problem of replacing worn out items.
Yes, you can claim depreciation, but be aware that tired furniture can turn people off as well. So you might end up having to buy new furniture more quickly than anticipated.
There’s every chance, too, that tenants without furniture will also be more transient. This means additional letting costs and loss of rent in the downtimes. Whereas tenants with furniture will at least be motivated by the costs of moving to stay put longer.
The worst news is that the demand for unfurnished properties exceeds that of furnished properties. So why go to all the trouble of outfitting your property in the first place?
There are some exceptions to the above—holiday rentals and serviced apartments. In these cases you’ll want to have a professional manager overseeing the operations.
If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles anytime on 0418 517 525.
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