Furnished or Unfurnished Rental: What Should Landlords Consider?

Choosing between a furnished vs unfurnished rental is an important decision for property owners. Both options can work well, but the right choice depends on your property, location, target tenant and how actively you want to manage the rental.

Before furnishing a rental property, consider the costs, maintenance and type of tenant you’re hoping to attract.

Furnished vs Unfurnished Rental: What’s the Difference?

A furnished rental typically includes the major furniture a tenant needs to live comfortably, such as beds, seating and dining furniture. Depending on the property, it may also include kitchenware and other household items.

An unfurnished rental, meanwhile, generally allows tenants to bring their own furniture and make the space feel more like their own.  

Consider Your Target Tenant

Think about who is most likely to rent your property.

For example, furnished homes may appeal to people who don’t already own furniture or who value the convenience of moving into a ready-to-live-in space.

However, tenants planning to stay longer may already own furniture and prefer an unfurnished property.

Therefore, consider the neighbourhood, property type and likely renter before deciding which approach makes sense.  

Compare the Costs

Furnishing a property requires an upfront investment. In addition, landlords need to consider replacing or repairing furniture and household items over time.

An unfurnished property typically requires less investment in furniture. However, the condition and features of the property itself will still influence its appeal and potential rental rate.

Rather than assuming a furnished property will automatically generate more income, compare the potential rent with the additional costs involved.  

Furnished Rentals Require More Inventory Management

With a furnished property, the landlord owns more of the contents inside the home.

As a result, keeping a detailed record of furniture and its condition becomes especially important. Photos and a thorough move-in condition inspection can help document what was provided at the beginning of the tenancy.

In BC, condition inspection reports can include appliances, furniture, fixtures and other items supplied as part of the tenancy.  

Furnished vs Unfurnished Rental: Maintenance

Furniture adds another layer of maintenance to a rental property.

For example, sofas, tables, chairs and beds may eventually need repair or replacement. Therefore, landlords should factor those expenses into their overall investment budget.

With an unfurnished rental, there are fewer landlord-owned items inside the property. Consequently, ongoing furniture maintenance may be simpler.

Give Tenants Room to Feel at Home

Another advantage of an unfurnished property is flexibility.

Tenants can bring their own furniture and create a space that suits their needs. For some long-term renters, this can make the property feel more like home.

However, a well-designed furnished property can offer convenience to tenants who don’t want to purchase or move furniture.

Which Rental Option Is Right for You?

There isn’t one answer to the furnished vs unfurnished rental question.

Instead, consider your target tenant, expected rent, upfront costs, maintenance responsibilities and the property’s location. Most importantly, make sure your tenancy agreement and rental practices comply with current BC residential tenancy rules.

If you’re considering purchasing or renting an investment property in New Westminster, Burnaby, Coquitlam or elsewhere in Metro Vancouver, the Adam Lloyd Home Selling Team can help you evaluate the property and local real estate market. Contact The Adam Lloyd Home Selling Team, we can help you understand what’s currently available, where the best value is and how to compete in this price range. Reach out anytime for a no-pressure conversation.

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