Landlords often find themselves in a dilemma whether to furnish or not to furnish their rentals when they are considering how to market their rental apartments. While no one has found an answer to this question, there are many reasons landlords should furnish their rental properties. Below are reasons every landlord should consider investing in furnished apartments.
1. Tax Deductible
Like any other investor, a property owner can enjoy certain tax deductions and breaks. Furnishing a rental property allows a landlord to invest in a consumable product, and purchases can be deducted just like any other business costs. Taxes for the self-employed individuals often seem onerous and are prompting landlords to look for any tax deductions or breaks that can maximize their savings. Furnishing a rental apartment can be just the tax deduction that a landlord needs.
2. Narrow Your Target Audience
Furnishing a rental apartment is an incredible way for landlords to target the addressable market. Furnished apartment often seems appealing to young tenants who are renting their first houses and people coming from a far distance. For these demographics, buying an entire apartment or moving household cross-country may not be a critical consideration due to cost. Young tenants would rather go for a higher rental rate per month than transport their furniture from one state to another.
3. Reduced Maintenance Costs
Moving furniture in and out of an apartment can cause a remarkable property loss and damage. Relocation hazards can be in the form of scraped tiles, carpet wear and tear, and leaving dents and chips in the wall, especially when a tenant is attempting to move into an apartment that isn’t spacious. Pre-furnishing helps a landlord avoid these hazards, which translates to reduced maintenance costs.
4. Create a Standardized Identity
Landlords have an array of options in which they can furnish their apartments. You may choose an overall beige look, wood tables, brown couches, or neutral items depending on the preferences of your target market. As a landlord, you can also take advantage of pre-furnishing apartments and offer furniture that reflects the environment or local culture. Furnishing a rental property with a décor with thematic features can make your building stand out from the pack.
5. High Demand
Furnished apartments Toronto rank higher on the market due to their convenience and limited availability means. While the initial cost of furnishing an apartment can seem high, increased rental income will eventually recoup that cost. Moreover, furnished flats allow landlords to choose their furniture carefully and ensure their property doesn’t wear and tear quickly. While a landlord will still incur the occasional cost of replacing some furniture such as chairs and tables, the overall cost tends to favor the property owner. Moreover, furnishing gives landlords the authority to control their public image.
