Is it worth it to furnish your apartment? It can be, but it depends on the market you’re going for. The advantages and disadvantages of furnishing your apartment are:
- You can get more rent; typically $50 to $80 a week more for a two-bedroom apartment compared to an unfurnished apartment. That’s an additional $2600 to $4160 each year.
- A furnished apartment is likely to have very low vacancy levels, because there are fewer on the market and there is usually good demand for them. They also look great in photos.
- Tenants also tend to move on more quickly, so your turnover will probably be higher than for a comparable unfurnished apartment.
- It isn’t cheap to furnish an apartment. For a one-bedroom apartment, you need to buy a bed, a bedside table, a couch and TV, a washer, dryer and fridge. It’s also smart to add a few inexpensive prints to the walls. Expect to spend around $6,500 for a one-bedroom apartment, plus an extra bed and bedside table for a two-bedroom apartment.
- Wear and tear will be considerable, so buying the cheapest items isn’t economical if they’re going to break easily. You can depreciate the furniture and chattels, so get them valued when you buy a furnished property or furnish it yourself.
- Even taking into account replacement costs and new mattress protectors for each tenant, well-chosen furnishings should be paid for in about 18 months.
Some apartments are better suited than others to being furnished. Talk to our Business Development Manager – Gina Colcord if you’re wondering whether it could work for your apartment or one you’re considering buying. We can walk you through the numbers, help you figure out the target market for your apartment, and you can get the information you need to make the right decision for your portfolio.