“Should I furnish my property and offer it for short stay?” Now this is a question we get asked a lot. With the BBQ season almost upon us, we are ready for a summer full of this question.
Let’s deviate for just a second. Having recently taken over the management of hundreds of older furnished properties, our clients are keen to know what they should do, when their 20-year-old furniture starts falling apart.
The easy thing to do is to slowly throw the furniture out as it breaks. Don’t do this. Prospective Tenants are either looking for a furnished or non-furnished property. If we have to describe in each of our ads that a property does or doesn’t have certain items, we very quickly get crossed of the inspection list. Put yourself in the position of the Tenant. To rent your partially furnished property your new Tenant is going to have to purchase a few items. What do they do with these items when it comes time to move? It is well known that “partially furnished” properties only receive a fraction of the enquiries, compared to our furnished or unfurnished properties.
This raises an interesting point. When (if ever) is it the right time to get rid of your old furniture? Before we give advice on this in regards to traditional rentals verses short stay, we must consider the following.
Location. Does the location have a transient population? This is obviously more likely close to tourist attractions and universities.
Competition. If the property was originally sold with furniture, it is likely that majority of apartments in that building will also have furniture. Removing it might open you up to a brand-new market.
Tax. Are you negatively gearing the property? Will purchasing new furniture benefit you when it comes to tax time? By the way, your agent can’t advise you on this point. You will have to speak to your financial planner / accountant to figure this out.
Lifestyle. Are you or your family planning on using the property?
This last point brings us back to the old short stay v traditional rental debate. There is no right or wrong here. I have seen neighbouring apartments offered for short stay with varying levels of success.
Factors that affect the outcome include.
Styling. Borrowing random, inappropriate pieces of furniture from family and friends verses a considered and thoughtful approach to matching and practical pieces.
Guest experience. The key safe clipped to the bike rack on the footpath, verses a professional company that inducts their guests and shows them the features of the property.
Timing. Will you be able to generate enough income during winter to cover your outgoings? A poor cashflow is one of the most common reasons people fail.
So, in summary, there is much to consider when it comes to tradition v short stay rentals. Furniture is the key here but without some expert advice you could be making the wrong decision. So rather than wait for the next unsuspecting agent at the next BBQ you attend, why don’t you give us a call. We do focus on Melbourne inner city apartments, if you are out of the city, we suggest you call a local agent.
Why don’t you call us and let us prepare a detailed report that compares furnished, unfurnished and short stay outcomes for your property. To start the conversation, please email hello@re-define.com.au.