We are often asked by landlords if they should rent their suites furnished or unfurnished. There are advantages to both types of rentals, but it really depends on your goals and the type of business you want to run.
Furnished suites are attractive to business executives and students, who are often looking for rental accommodation for a six to twelve-month period. But you have to ask yourself as a landlord, “What business do I want to be in?” Is it the short-term, rental business – almost like a hotel – or do you want lower turnover and long-term leases?
There are companies that specialize in executive accommodation and they go “all in”, with their own janitorial staff, interior designers and focused marketing. Again, you have to ask yourself, “Is this where I want to place my focus?”
You can charge more for a furnished suite, but your expenses are higher. Renters in this market often expect features such as Wi-Fi and cable to be included, and wear and tear on furniture can be high. If someone spills wine on their own sofa, they are often much more careful about cleaning it than if the sofa comes with the suite – and remember, you can’t charge a higher security deposit just because it’s a furnished suite.
Ten years ago, when it was a renter’s market, it made sense for some landlords to furnish their suites and widen the markets they appealed to. But in our view, in 2018’s market, the disadvantages of renting a furnished suite outweigh the advantages.
Every property owner has different needs and goals, but we make sure that all of our owners remain competitive with up-to-date market analysis and strategy. If you’d like to see what a client-focused property management company can do for you, please contact our office at 604 873 8591.