
Get exclusive money-saving offers and guides
Straight to your inbox
Updated
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Before you decide to rent out your investment property fully furnished, there are a few factors to keep in mind.
Furnished units appeal to students, professionals working on contract, or families on vacation. Therefore the location of your property plays a big role in attracting these types of tenants. To a lesser extent, the size of your property should also be a consideration. A multi-storey home will be less likely to attract a professional working on contract, while a small unit may not be as highly sought after in a family vacation area. And above all, property investors need to evaluate if there is a demand for furnished properties in their area.
Landlords have the option of providing furnished, unfurnished or partly furnished rentals. According to Nest Designs interior stylist Emma Blomfield, the necessities of a fully furnished rental include:
As for electricals, Bonnet suggests including: LCD TV, DVD player, stereo/iPod dock, standard size refrigerator, dishwasher, washing machine, dryer, air conditioners, barbeque.
"In general have good quality items as they will look good for longer, need less replacement and need less maintenance. It's very easy at the moment to buy cheap furniture packages from the larger retailers, but these may be a false economy if the tables are easily scratched, the chairs fall apart and the couches are uncomfortable." Bonnet says.
You don't want to end up with cranky tenants who complain about the furniture,"
Collins agrees, adding that "a darker, leather sofa for example might be more pricey than a fabric one but cleaning off greasy hand-marks or a red wine spill will be easier and less likely to show stains. Therefore the property and its contents are much more appealing when new tenants move into the property."
Investment property owners can expect to pay from $12,000 to fully furnish and equip a 1-bedroom apartment, suggests Blomfield. "You need to ensure the furniture is good quality and able to withstand heavy use. Good quality furniture doesn't always mean it has to be expensive, spending a fortune on a designer sofa is not practical for investment properties, especially in holiday areas where you know children or pets will be staying."
About important things to find out when buying a property
In terms of decorating, property investors should consider the location of their unit and its surroundings. "It needs to be sympathetic to the surroundings plus it needs to be an inviting and welcoming space," says Blomfield. "I always start with a neutral palette - large items such as sofas, armchairs, dining tables et cetera in neutral colours such as greys or beiges. It sounds a bit dull, but it's easier to mix up the style and decor with a neutral base than having to work with a bright red sofa for years to come. Colour can be added in the accessories such as vases, lamp shades, scatter cushions and artwork," she says.
Blomfield's advice is to keep it modern, contemporary and fresh. "Start with a neutral base and build on it with decorative items. Ultimately you should be looking for quality items that will be able to last more than a few months of heavy use, choose items with wipeable surfaces, eg. a glass top bedside table is easy to wipe with some Windex and a cloth. Timber can get watermarked from glasses and dents and scratches much more easily. If you make smart choices when furnishing from the beginning it will pay off in the long run."
Accessories, antiques and expensive breakables top the list of items to avoid.
"Don't include anything that would break your heart if it was broken," Blomfield says. "If you know your property will be used by children, don't have things displayed at kid height, if you want to use decorative items like vases and glass trinkets, make sure they are out of reach. Keep it practical and stylish."
She adds: "I wouldn't over accessorise with trinkets and things that can clutter surfaces such as kitchen bench tops, bathroom benches, bedside tables etc. It's important to keep them clean and neat and uncluttered to show off the space."
Expensive electronics are also best avoided.
Many newlyweds or young renters will have already amassed some furniture, but are still keen to rent properties with some items – particularly white goods such a fridge, washing machine/dryer, dishwasher and stove. White is usually the best colour of choice for appliances and generally looks less dated.
While you might not be keen to furnish your investment property, there are advantages to showing your unit with furniture.
Home staging gives the tenant an idea of how their furniture will fit into the space, as well as giving the property an inviting look.
Warren notes, "If you have purchased a "compact" property size wise a clever furniture combination can make a small space look absolutely fabulous and tremendously appealing."
Obviously less furniture is needed, but the same rules apply in terms of keeping the furnishings modern, neutral and simple.
Landlords using this approach also have to factor in the added hassle of buying or renting the furniture, storing the furniture and moving it in and out.
Property investor? Protect against the worst with landlord insurance
After entering your details a mortgage broker from Aussie will call you. They will discuss your situation and help you find a suitable loan.
The Adviser’s number 1 placed mortgage broker 8 years running (2013-2020)
Find the right granny flat insurance, whether you're renting yours out or you've moved into one.
Finder experts explain how to claim home office expenses on your 2020 tax return, tips for new investors and how to get the most out of the EOFY sales in 2020.
Property expert Rich Harvey takes us through five key factors that investors need to consider before buying or selling in the current market.
Property expert Michael Yardney takes us through some of the most common pitfalls faced by first-time investors – and how to steer clear of them.
Today on Pocket Money, Michael Yardney joins us to help us understand how to research, finance and manage your property investing strategy with the long term in mind.
Chris Gray takes us through four things people get wrong when buying property.
If you've got the cash flow and you've paid your mortgage down, investing in property can be a wise move.
Typically selling a rental investment property will incur Capital Gains Costs care of the ATO. However, if you live in the property first you may be able to avoid these dents in your profit.
A PAYG withholding variation can help boost your investment property cash flow.
Use this downloadable spreadsheet to keep track of your investment property income and expenses.
The pros of having a fully furnished property outweighs the cons from the perspective of a property owner. Also it is a win-win situation for both the owners and the tenants. This article is a must read for property investors.
we live in the country on 21acres with a med to large home, it has a new modern large kitchen, clean and open plan. Question: should we rent with or without furnishings?? Happy to leave as is, ie fridge, freezer, dining tables x 2, beds, lounges, desk, outdoor settings etc etc
What do you suggest??
Thank you
Hi Jill,
thanks for the question.
This is a personal decision that you should arrive at after comparing the pros and cons listed on this page. You might also want to contact a local real estate agent to find out what the renters in your area expect.
Cheers,
Marc.