Furnished rental properties are becoming more and more popular in many parts of the world. With the arrival of many expatriates and international students, there is a lot of demand for these homes, and more and more first-time buyers are finding peace in this form of rental housing.
What Is Furnished Housing?
Furnished means that it is already equipped with all (basic) living facilities such as a bed, sofa, table, wardrobe, etc. Rental properties are often classified into bare, upholstered, and furnished types.
Bare: In a bare house, there are no floors, wallpaper, or curtains. The new occupants still have to do all the DIY work themselves (and bear the cost). This is something not often encountered in the rental market.
Upholstered: Upholstered houses are already equipped with basic amenities such as flooring, white or paper walls, and curtains when you move in. New tenants can move in by simply placing the furniture as a general rule. This is the most popular delivery method globally. Why? It’s quicker for the landlord, and people are accustomed to bringing their furniture.
Furnished: As a general rule, you only need to bring your own clothes, smart devices, and toothbrush. This is why this delivery method is very popular among tenants. For instance, many students and young professionals often find themselves looking for a home abroad at short notice. The option of picking out a new sofa at Ikea over the weekend is obviously not an option for them!
Advantages of Renting a Furnished House
Rental Fees Are Higher
Preparing a new investment costs a lot of money, but it also comes at a cost. Once the utilities are in place, tenants will want to deposit the extra money as soon as possible. A home that is already equipped with all the necessary facilities for the daily life of the tenants can make their lives more comfortable, but it is also more expensive. Potential tenants have certain expectations and requirements for the property they want to rent. For example, a washer, dryer, and flat-screen TV should come standard.
Remember, it is also essential to keep in mind that price factors vary depending on the property. If the property is located in an expensive area and the supply is low, renting a furnished property will be more beneficial to the landlord.
Targeting the Right Audience
First, tactical furnishings will allow you to create a home that perfectly fits your intended target group. Keep in mind the hopes and expectations of that target group, as well as your own wallet.
For instance, when renting to students, there is a high possibility that something will break, so simple and sturdy furniture is a good investment. Fortunately, a student’s room often only needs a bed, sofa bed, wardrobe, desk, and chair.
Are you aiming for high-end? Make it radiate throughout the house. For example, in a luxurious interior with an industrial design. A designer lamp on a designer dining table in the living room can be the icing on the cake for business people for instance. Fortunately, this target group can often afford to spend and may even receive support from their employers.
What’s Best for Landlords?
At first glance, this question appears to be black and white, but there are shades of gray, as you might expect.
For the landlord, the vital thing is always the tenant. After all, the number one thing a landlord wants from a rental property is revenue, and if the property is not filled, it won’t be profitable! What the tenant wants is far more important than what you want, and the correct answer lies in this question.