[Article from LexpressProperty magazine 74 (April - May)]
Do you want to rent out a property? You have two options: renting it out unfurnished or furnished.
[Article from LexpressProperty magazine 74 (April - May)]
Do you want to rent out a property? You have two options: renting it out unfurnished or furnished.
- Know that besides the mandatory equipment for a furnished rental, there is also a difference in the legal obligations of the lease.
- Often considered more profitable than unfurnished rentals, furnished rentals have higher rents.
- In a furnished rental, the return on investment can be affected by more frequent tenant changes, a higher risk of vacancy, and more expensive maintenance.
- The gross profitability of your property will be higher if it is rented furnished rather than unfurnished, due to higher rents received. However, taking into account the taxation of your income, the net profitability will be much higher with a furnished rental property.
- Unlike a furnished rental, which requires time to perform the usual tasks of managing your property (or going through a management agency), an unfurnished rental is a much more stable activity. Tenants often stay for longer periods, so there are fewer vacancies.
- When renting out a furnished property, your apartment must be immediately habitable. This means that your tenant must be able to live in the premises only by bringing their personal effects. It is important for you, as a future landlord, to consider that a comfortable apartment will allow you to receive higher rental income than a poorly equipped one.
The provision of furniture is a service and every service has a cost. With equivalent quality, surface area, and location, a furnished property rents for more than the same unfurnished property. But its rent will never be twice as high.
