furnished or unfurnished rental?

[Asian_defender]

Getting into the rental market and wanted the opinion of beyonders. I'm buying a downtown condo and wanted to get the pros and cons of a furnished rental.
So far I have the following....

Pros:
More rent

Cons:
Shorter lease agreements
Furniture upkeep in case it gets trashed

Anyone think of any more pros/cons?

[Frankie88]

Both of my current units are furnished, and I find out it attracts more renters now than they are unfurnished but many of them are short term though. My feelings are it doesn't hurt me much by furnishing the suites.

[Feruk]

The only question should be whether the furniture is a good return on your money. How much does furnishing the unit cost vs how much added rent you'll see? How long does the added rent take to pay off the furniture? How often do you believe you'll have to replace furniture? This isn't a "pros vs cons" question, it's a question of whether your money is better spent on furniture or invested elsewhere; economics 101.

[HiTempguy1]

I don't see furnished as being a bonus. First, in a rental, it's already bad enough it's not "home". Then, you are sleeping on someone else's bed. Finally, who doesn't have their own furniture? I moved from a unfurnished to a furnished condo, and had to find a place for all of my stuff to go :banghead: But the place itself was a good deal. Also, furnished screams short term, which is exactly what you do NOT want for renters. Every month you miss rent due to short term rentals is a month you could have dropped your price by another $100+ per month to get longer term renters in (who will probably also stay longer past the initial lease).

I also RARELY find furnished brings more money, maybe in a house setting, but a condo? Not really.

[you&me]

Originally posted by HiTempguy1
I don't see furnished as being a bonus. First, in a rental, it's already bad enough it's not "home". Then, you are sleeping on someone else's bed. Finally, who doesn't have their own furniture? I moved from a unfurnished to a furnished condo, and had to find a place for all of my stuff to go :banghead: But the place itself was a good deal. Also, furnished screams short term, which is exactly what you do NOT want for renters. Every month you miss rent due to short term rentals is a month you could have dropped your price by another $100+ per month to get longer term renters in (who will probably also stay longer past the initial lease).

I also RARELY find furnished brings more money, maybe in a house setting, but a condo? Not really.

Professionals here on a contract often don't move their furniture. I have a place that I rent out furnished and while the tenants seem to turn more frequently than usual, they're all high quality people that are well past the "trashing someone else's stuff" phase of their life.

In my case, the cost/value of the furniture has long been eclipsed by the increase in the rental rate, but that pales in comparison to the comfort of knowing the place is safe in the hands of the tenants. I can't be sure what kind of tenants I'd attract if my place was unfurnished, but I know I can attract the "executive rental" types by having it furnished.

I think it depends on what kind of place you're renting out (location, size, etc) and what it will take to furnish it. I was moving into a new place where much of the furniture wouldn't fit / wasn't needed, so it was a no-brainer to just keep it in the rental. If you have existing furniture that's of decent quality and condition, I'd use that - there's basically zero value to used furniture anyways. Then when it comes to buying new stuff, at least that's for the place you live in.

[Asian_defender]

For those of you who have furnished rentals, what are your typical lease durations? 3 months? 6 months? 1 year?

[BananaFob]

Originally posted by you&me


Professionals here on a contract often don't move their furniture. I have a place that I rent out furnished and while the tenants seem to turn more frequently than usual, they're all high quality people that are well past the "trashing someone else's stuff" phase of their life.

In my case, the cost/value of the furniture has long been eclipsed by the increase in the rental rate, but that pales in comparison to the comfort of knowing the place is safe in the hands of the tenants. I can't be sure what kind of tenants I'd attract if my place was unfurnished, but I know I can attract the "executive rental" types by having it furnished.

I think it depends on what kind of place you're renting out (location, size, etc) and what it will take to furnish it. I was moving into a new place where much of the furniture wouldn't fit / wasn't needed, so it was a no-brainer to just keep it in the rental. If you have existing furniture that's of decent quality and condition, I'd use that - there's basically zero value to used furniture anyways. Then when it comes to buying new stuff, at least that's for the place you live in.

+1.

That being said, to attract the executive types, you really do need to have nice furniture to command the high rents and better quality tenants. You will get kijiji quality tenants with kijiji special furniture.

[Xtrema]

Usually it's not worth it unless you like turn overs.

But I know there are professional on longer than 1 year assignments, but rare. Usually it's 3-6 months.

Like BannaFob said, you probably need good stuff to attract good tenants. Furnish vs unfurnished usually has a difference of about ~$500/mth in rent. Based on ~1000sq ft, consider you need to put in at least $10K to furnish the place nicely, you need the furniture at least 2 years to turn a profit.

[HiTempguy1]

You&me, those are very good points. I wasn't considering this from a "professional" type of individual standpoint (might have missed that in the OP).

Yes, if the clientele you are looking to attract are higher end professionals, then most of what I said isn't very relevant.

[you&me]

Originally posted by BananaFob


+1.

That being said, to attract the executive types, you really do need to have nice furniture to command the high rents and better quality tenants. You will get kijiji quality tenants with kijiji special furniture.

That goes without saying. As I said, "used" furniture, regardless of the price when new has very little value, so if you have some already, that's the best bet.

There are so many factors to consider here, it's tough to give advice without more details.

IMO, if your place has the potential to be an "executive" rental and you have some or most of the existing furniture required to fill the place up (and can swing refurnishing your "home"), then I'd consider it. Otherwise, I wouldn't bother for a regular rental... Too much risk with regular tenants, not enough upside, etc.

OP - tell us more about the place you're renting out...

[Asian_defender]

This is the unit, its in the keynote
http://www.ca.open2view.com/properties/3201
http://www.ca.open2view.com/properties/3201

about 625 sq ft

[you&me]

Originally posted by Asian_defender
This is the unit, its in the keynote
http://www.ca.open2view.com/properties/3201
http://www.ca.open2view.com/properties/3201

about 625 sq ft

Looks like a nice place, but I'm not seeing any reason to rent it furnished.

[Xtrema]

Originally posted by you&me


Looks like a nice place, but I'm not seeing any reason to rent it furnished.

Exactly, not big enough to appeal to executive rentals.

Here are your competitors in the same building.

http://www.rentfaster.ca/calgary-apartment-for-rent/downtown/keynote-2-bedroom-executive-88934

http://www.rentfaster.ca/calgary-condo-for-rent/victoria-park/fully-furnished-downtown-88387

[heavyfuel]

Definitely will attract better renters with a nicely furnished suite. In 8 years I can't remember ever getting a call from an executive-type landlord needing a tenant-based disaster cleaned up. You get what you pay for and reap what you invest, I say furnish it nicely charge more and be extra selective.