Are you planning on renting out an apartment and still contemplating whether you want to rent it out furnished or unfurnished? There are quite a few things to consider when it comes to renting out a property. It is therefore not strange to think carefully about the consequences of renting out your property with or without furniture and appliances. Both options each have their own advantages and disadvantages, so it can be useful to read all the pros and cons in this article. All for you to make the right decision.
Find out what your preference is, after reading about the main advantages and disadvantages of renting out a furnished or unfurnished apartment in Barcelona in the text below. Let’s go!
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The advantages of renting out a furnished apartment
Choosing furniture for an apartment you want to put up for rent is not always that easy, because if you want to get it right the first time, you need to invest both time and money. It is key to find the best products at exactly the right price.
1. Habitable immediately: The apartment already has everything a tenant needs to move in directly.
2. Wider target group: This type of property – for monthly rent – is mostly interesting for people who are looking for accommodation for work or study for only a certain amount of time. They have no intention of living in the apartment permanently. As a result, there are more tenants that could be interested in your property. This type of apartment is also perfectly suitable for people who decide on sharing a place.
3. The value of the apartment: Once you start investing in the apartment, in whatever way, it increases in value. And if you also do it right? Then you end up with a very attractive apartment to rent out, and you can end up with better revenues.
4. Marketing: A furnished apartment looks better in advertisements. So when potential clients are looking for accommodation, they can be easily convinced by what they see. This could eventually lead to you renting out the apartment better and faster.
5. Furniture and appliances control: Have you put time and effort into furnishing the apartment you are renting out? If so, you should always keep your receipts, manuals and guarantee certificates. As soon as there are problems on the horizon, you can quickly access any relevant information and solve the problem or replace an item.
6. More revenue: A furnished apartment is higher in price than for an unfurnished apartment, so if you invest in furniture and appliances, you can increase the rental price of the apartment.
The disadvantages of renting out a furnished apartment
Although you have already read that renting out a furnished apartment can be very tempting and more lucrative, you should also be aware of the disadvantages when renting out with or without furniture and appliances (for example washing machine and fridge).
1. The investment itself: Decorating and furnishing an apartment requires an extra investment in time and money. Everything you are adding to the apartment – from beds to a dishwasher – costs money.
2. Damages or breakdowns: You should always be aware that both furniture and appliances will be showing signs of wear-and-tear after the apartment has been rented out for a certain time. Besides that, things can break and then need replacing, if they can no longer be repaired.
3. It’s all in the details: Do not be tempted to drag your old furniture or regularly used appliances from your own home to the apartment you intend on renting out. A new tenant wants a fresh and modern apartment and interior. If you can manage the details, it will be worth your while in the end.
4. Monthly rentals: Furnished apartments mostly rent out by the month, so most tenants are probably only staying temporary, and this means your apartment may be vacant for a month (or couple of months) before a new tenant will be interested and sign the rental contract.
5. Inventory list: When you rent out your property, you should always have a list of all the items in the apartment. Inventory should be taken every time a tenant leaves the apartment (and a new tenant arrives).
6. Repairs or replacements: Things break, even at your own house, so let alone at the place you put up for rent, that is not a tenants personal property. Sometimes items can be repaired, but sometimes it will cost extra to have them replaced. If the tenant is not responsible for breaking or damaging it, you will have to pay those expenses from your own pocket.
|📌 It is good to know that ShBarcelona offers comprehensive maintenance services. This means all inventory elements are checked, repaired and, if necessary, replaced. And don’t forget to take out an insurance that covers any damages that cannot be claimed from the tenant.|
The advantages of renting out an unfurnished apartment
After reading the previous two paragraphs, you might wonder why you should consider putting your unfurnished apartment on the rental market. We therefore want to share a couple of advantages with you, which we think are certainly interesting.
1. Long term rentals: Potential tenants are more likely to live in an unfurnished apartment for a longer period of time. Every new tenant will spend time and money in furnishing the apartment the way he likes it. Once personal taste has been added, you can assume tenants would want to rent for longer, and not just a couple of months. This results in a more stable income.
2. Less worries: When a contract is signed for a longer period, it might be occupied for the next five years. This means that tenants will take better care of the apartment and their own belongings inside the property. Not only does this mean you will rent the apartment out for longer at a time, it also takes away the risk of damages or broken inventory after a tenant leaves. After all, he is taking his own belongings with him again.
3. Tenants tend to be more satisfied: When tenants furnish the apartment theirselves, this will often lead to higher satisfactory rates, as opposed to apartments that have been decorated by the owner. People prefer having an influence on their home and everything that is inside.
4. No financial investment: If you don’t invest in furniture and appliances, you save on these expenses. Not spending any money on furnishing means you keep this money in your pocket.
5. Minimal investment? If you do want to invest a little, consider equipping the apartment with appliances that are less personal, like a washing machine and a fridge. These items do not affect the look of a property, but they will attract potential tenants, because you offer them something extra they don’t have to spend money on themselves. In addition to that, you can decide to increase the rent, because you offer your tenants extra facilities in the apartment.
The disadvantages of renting out an unfurnished apartment
And last but not least, there are certain aspects that can be of a less positive influence when renting out an unfurnished apartment. Read the most important ones in the text below.
1. The basics: Even if you don’t put furniture in the property, the presence of basic elements (like a fridge, microwave or washing machine) can be more appealing to potential tenants. Anything that you add to an unfurnished apartment leads to a higher rental price, like for example the possibility to use air conditioning or heating inside the property.
2. Lower rental prices: Contrary to what used to be the situation, nowadays a tenant may want to negotiate about the price of an apartment, just because it is not furnished. You might run the risk of accepting a lower rental price than you originally had in mind, because of the lack of furniture and appliances.
3. Less potential: An apartment not being furnished is what could put off a certain number of potential tenants. Some tenants are simply looking for accommodation for a certain period of time, and therefore only want to rent a furnished property. It is also possible that they do not have money furnish and decorate an entire apartment, and in that case you could possible miss these potential new tenants.
Still have questions? Contact a real estate agency
Even though this was an extensive article with a lot to think about, you could still have a few doubts on renting out your apartment furnished or unfurnished. So please know that there is not just one answer to this question. For both the landlord and the tenant there is plenty to say about renting with or without furniture and appliances. It therefore depends on both parties and their personal preferences.
It might be interesting to contact a professional for advice, taking your specific property and investment into account. ShBarcelona knows all the ins and outs of managing a range of properties in Barcelona, and as a result both landlords and tenants are able to choose what suits them best.
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