Before choosing to lease out a fully furnished condo, take a minute to think about your target tenants or the demographics around your property. Are they new immigrants, workers, students, or families?
Furnishing your property seems like a great idea because you can add the phrase “Fully Furnished Condo for Rent” to your advertising and can eventually be a basis for you to increase the rental fee. A furnished rental property can also help lessen vacancies and attract more potential renters.
But before that, you have to know if your property is suited for furnishings or if furnishings are even sought at all in the property market in your area. For an accurate judgement, it is best to ask your property agents or adviser, which you can in our comprehensive list here.
But, for your guide, we’re going to give you tips about furnishing your rental property anyway.
The difference of a Partially Furnished and a Fully Furnished Condo
The term fully furnished can mean differently to each person. But generally, a fully furnished condo, house, or apartment for rent means that your rental property is complete with the basic necessities with little extra appliances for the tenants. This includes beds with foams, lounge set, dining furniture, appliances such as air conditioning, television, water heater, and kitchen basics such as microwave, pots, and utensils.
A partially furnished condo for rent means that you only have the most basic furniture, which is usually large and bulky. Such furniture includes beds, sofa set, and dining furniture.
What Properties are Suited to be Furnished?
In an article by Barfoot & Thompson, it was stated that properties ideal to be furnished are the following:
Short term rentals/holiday rentals
Properties that are difficult to access, for example, a flat high up the stairs.
Tenants who are unlikely to have their own furniture, like students or new immigrants.
Tips to Successfully Maintain a Furnished Rental Property
Ensure Furniture Quality
If you finally decide to furnish your property, do provide your tenants with furniture in good condition. Placing flimsy and easily breakable furniture could reflect you as a landlord. It’s not that your tenants mean to destroy your furniture. You just need to expect the daily wear and tear of your furnishings and potentially rowdy tenants.
So, it is important to provide quality furnishings which you check and maintain monthly. Having great furnishings can also be a way to show tenants that your property is a real value for money.
State the Furnishings Included in Your Rental Property Clearly
When posting your listing online or when advertising it anywhere, be sure to indicate exactly what furnishings you will be providing. This makes you transparent. And as mentioned earlier, you might have a problem explaining to people what fully furnished and partially furnished entails, hence, it is better that you provide a list of your furnishings.
Have a Safety Net for Any Damages to Furnishings Incurred by Tenants
When leasing a property, it is normal to collect an advance rental payment that serves as a security deposit. A security deposit is refundable and can be used as security in case of liabilities caused by tenants. Such liabilities usually include any property and furnishing damage that is beyond ordinary wear and tear, of course.
However, as of the new Thai Law in effect since 2018, landowners can only collect one-month advance payment. This law applies to all landlords who lease at least five or more property units in one or more buildings for residential use.
Because of the limit to one-month advance payment, landowners may be left vulnerable to irrecoverable liabilities brought about by bad tenancy. What you could do is to get content insurance or a policy that covers furnished property. For more information regarding policies or contracts that could ensure your properties, it’s best to ask an experienced property agent.
Factor in Wear and Tear Costs to Your Monthly Rental Fee
As a landlord and the lessor, you will be solely responsible for the maintenance or replacement of any damaged appliances or furniture provided. Again, the tenant is only responsible for any intentional damages or careless handling of furniture or appliances. Since you’re going to cover the usual wear and tear, better include the potential cost to the rental fee.
Final Answer: Ideal or Not?
The answer is it depends. In the article above, we have explained the pros and cons of renting out a fully furnished condo or house, and it’s up to you to decide. Ultimately, this article serves as a guide regarding your quick questions on rental property furnishings. We hope this helped you with your real estate investment journey.
For more tips and insights regarding Thai Rental Business, you could check out these links:
For more updates on the Thailand property market and Asia real estate news, do follow our Facebook page. You can also register your email at our newsletter subscription section below our homepage.
About Yazhou Property
Yazhou Property is a Property and Lifestyle website. We provide fresh overseas real estate news and the hottest real estate property for sale. We also give helpful tips to aid you in your real estate journey and your overseas property investment.
Find real estate for sale around Asia in our updated property listing. You could also find the best real estate agents and real estate developers on our website! Contact us now to learn more about our services.