Many landlords toy with the idea of leasing their property fully furnished. Yes, it does bring extra income, but unless your property is in an area where a fully furnished lease would be attractive, you may be wasting time and money.
Furnished properties are great around metropolitan areas and close to or in Central Business Districts (CBD). There is a higher demand of these properties as workers look for a convenient option to suit their lifestyle. But, if you’re going to do it, there’s no half measures. You have to fit property out with attractive comfortable furniture and have everything provided, from entertainment and white goods all the way through to cutlery.
The benefits of a fully furnished property are you can receive a considerable amount more for your property. The general rule of thumb is adding an extra $150 to your rent. Though finding a long-term tenant can sometimes be a problem. Usually the tenancies are between 3-6 months on average. Though every now and then you may snag a lease with a corporate company that will take the property for 12-24 months to house international and national clients.
If you’re not in an area where demand is high for this leasing situation, you might find that it will take an extended period to find tenants and your overall extra gain may be minimal. It’s not impossible, but with the time it takes to place a tenant and the amount of money you must invest to have the property furnished, it may be worth sticking with a standard vacant lease.
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.