Can furnishing your property increase your rental yields?
For landlords who are considering on how to market their rentals, they are often faced with two major questions, “Do I furnish it or not?” and “Can furnishing my properties increase my rental yields?”.
Furnished apartments are high in demand
Furnished apartments move more rapidly than the unfurnished. Yes, you may incur great costs while furnishing your rental houses, but the advantage to this is that you can recoup that amount and even more by slightly increasing the rent to cater for your costs. Also, consider furnishing your houses with furniture and other fittings that can withhold wear and tear, although this might be expensive, you won’t need to replace it for a long time.
Furnishing is tax-deductible
Landlords usually benefit from particular tax deductions and breaks. By furnishing your rentals, you are basically investing in consumable products necessary for your business; in this case, the purchases can be deducted as the business expenditure. Due to the fact that self-employment taxes are onerous, most of the landlords are always looking forward to any benefits or breaks that could save them money.
Through furnishing, you narrow down your target market
Pre-furnishing your rentals is one way of targeting a specific group of tenants that you consider as ideal tenants. Furnished rentals attract tenants from different locations as well as age. For such tenants, the question of how do they transport their bulky furniture all across the country is out of the picture as they readily have a fully or partially furnished house.
Furnishing may cut maintenance needs
We can all agree to the fact that a lot of damages are made in the course of moving furniture in as well as out of the apartment. This includes the chips and dents on the walls, the carpets wear and tear, scraped tiles, etc. As a landlord, by pre-furnishing your apartments, you greatly reduce the maintenance costs caused by such instances.
The downside
Generally, there are many benefits you can enjoy as a landlord which includes an increase in rental yields upon furnishing your houses. However, furnishing has its downside as well. One of the main reasons why house owners resist the idea of furnishing is dealing with cases of careless, short-termed tenants. While moving out, they may leave the fixtures and fittings in a deplorable state, that would definitely be an added cost to the landlord. To some extent, the security tenancy fee might not be enough to cover for the damages.
Another disadvantage of pre-furnishing your house arises from probable tenants’ specific preferences. Each individual has his/her own preference. As a landlord, you may furnish your apartments in particular colours or designs, which may not be the preferred client choice. In this case, you may lose some clients who might be looking for a house with a particular design and set up.
Note, people move miles due to various reasons, as well as, young people continually in search of apartments, which makes the furnished apartments the best option to take.
Yes! Furnishing your property brings some great benefits compared to the disadvantages.