How do you furnish a rental property to maximize your rental income? Learn which rental property renovations, furnishing and appliances deliver the best returns for your money.
It's common knowledge that a furnished rental property commands more rent and enjoys lower vacancy rates than a vacant counterpart, but the trick is knowing where to invest your renovation funds.
A parking space is highly valued by most tenants. If your rental property lacks one, the number of prospective tenants (and consequently the rent amount) will plummet. In terms of value for money, a sheltered parking area is consistently ranked as one of the best ways to boost tenant demand and rent.
Locate the parking space as close as possible to the main door to give your tenant quick and easy access to their vehicles. If your property lacks a parking space, you can consider converting the front lawn into one.
Assess your tenant's storage needs. Interestingly, middle class tenants always seem to run of storage space while low and upper class renters tend to have lower storage requirements. If your target tenants tend to have bigger storage needs (e.g. middle class folks, families), investing in a storage shed can give you good returns as well.
Washer and dryer hookups are essential to most long term tenants. We have seen tenants who won't even bother looking at properties that lacks this fixture. This should be the first thing you install if you want to furnish a rental property
Carpets and curtains can transform the look of a property and boost its appeal to tenants, but they're a hassle to clean and maintain. Most tenants won't take proper care of rental property furnishings so you must be prepared to replace them or pay for a professional cleaning service at the end of the lease.
On the upside, you may be able to cover this cost by deducting from your tenant's security deposit. Carpets and curtains are recommended for upscale properties but it's optional for other types of rental properties.
Recent studies have shown that tenants who bring their own kitchen appliances (stoves and fridges) are more likely to stay longer and cause less problems. However, they are the minority and landlord are still expected to supply these rental property appliances in most cases.
Home services such as Internet connection, telephone lines and cable TV will depend heavily on your tenant's individual needs. Over time, we have observed more and more tenants are asking for Internet access while demand for telephone and cable TV have been steadily declining. To cut down expenses, you should only activate these services when your tenant requests for them.
If you intend to have a fully furnished rental property, then basic furniture and appliances will include: beds, sofa, wardrobes, tables, chairs, washing machine, fridge, cooker and television.
For well-furnished rental properties, we recommend that you buy landlord contents insurance to protect yourself against damages and losses - Click here to learn what does landlord contents insurance cover.