Should I Rent My Toronto Condo Out Furnished or Unfurnished?
When you are ready to rent out your condo you may be wondering if you should rent it finished or unfurnished. If you had been living there, should you move your furniture out? Some condo owners believe their furniture adds a lot of value to the unit. Others think they should leave a few key pieces or nothing at all.
So which is best? We weigh the upside and downside of each option for landlords. Then, you can decide whether you think you should rent out your condo furnished or unfurnished…
The More Popular Option
More Toronto renters are looking for unfurnished condos. Either they have their own furniture, or would rather buy some than use yours. Let’s face it, most people would prefer to sit on their own couch, eat off their own plates, and sleep in their own bed! Even if they are budget conscious or planning on staying for just a year, they might already have furniture, be able to get some furniture given to them by a friend or family member, or find a place with affordable pieces for sale.
People who are seeking furnished condos are a smaller segment of renters. They also are often in the luxury market, or shorter term rental market (less than a year)- both of which are not the norm.
Rental Costs
If it is well decorated, a furnished condo is usually worth more per month. However, the amount of tenants who are looking for a furnished condo is much less than those seeking an unfurnished unit, so you might wait longer to find a tenant. Also, you are more likely to deal with short term renters with a furnished unit, which means time and edgy spent finding new tenants more often and having to pay the bills in between.
Furnished units are usually only worth slightly more. So, while you can ask more per month, you’re ruling out the majority of renters looking for condos.
Time and Money
Furnishing a condo in order to rent it out means an investment up front, or if you already own the furniture, trust that it will be unharmed. You will have to replace furniture when it is worn or damaged.
The furniture should also be stylish and modern, so if you just want to leave your old stuff (and let’s be honest, it’s likely because you don’t want to take the time to move it or store it-) you might turn off buyers if it’s not their style anyway. Note: appliances should still be included.
Finally, as mentioned, short term renters are more likely to be leasing furnished condos, which means more ongoing time is invested on your part finding new tenants. Unfurnished units are more popular with those staying a year or more, so there is less money spent on furniture and (often) less time spent finding tenants.
So, consider these factors when your are planning to rent out your condo. In a city like Toronto there is more demand for unfurnished, so if you want to attract more potential tenants and longer term tenants, that might be the best choice for you. If you want to rent your condo out short term, or have a luxurious suite with stylish furniture (and really feel the amount more you could get is worth it) renting it furnished could be right for you.
Speak to a Realtor about your specific unit. They can tell you about the current market, comparable rental units, and offer suggestions. (For example, we have a lot of experience helping great tenants and landlords rent homes in Toronto’s condo market. Contact us with any questions)!
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