{"id":9125,"date":"2019-09-02T12:53:40","date_gmt":"2019-09-02T12:53:40","guid":{"rendered":"https:\/\/kenyahomes.co.ke\/blog\/?p=9125"},"modified":"2019-09-03T06:47:23","modified_gmt":"2019-09-03T06:47:23","slug":"is-a-furnished-rental-a-good-real-estate-investment","status":"publish","type":"post","link":"https:\/\/kenyahomes.co.ke\/blog\/is-a-furnished-rental-a-good-real-estate-investment\/","title":{"rendered":"Is a Furnished Apartment Good Real Estate Investment?"},"content":{"rendered":"\n

There are many things to consider when investing in real estate property. Aside from the location, home inspections, and the closing costs, one very important factor to take into account when investing in a real estate property is if the apartment is furnished or unfurnished. <\/p>\n\n\n\n

Whether you decide to go for furnished apartments for rent versus unfurnished apartments can make a huge difference in the value of a rental property. It may also be a deal-breaker for renters.<\/p>\n\n\n\n

When deciding whether to go for furniture or not furniture, first you must study the location of your investment property. If your property is located in a prime location for vacationers, then your best option would be to opt for furnished apartments for rent. Because of the location, tenants there will look for short-term rentals<\/a> and most tenants will prefer a furnished property. <\/p>\n\n\n\n

When on vacation, the last thing a renter wants to worry about is furnishing an apartment. This may also lead you to decide if you want to invest in an Airbnb<\/a> property. Airbnb<\/a> properties are usually furnished properties, used for short-term rentals.<\/p>\n\n\n\n

Why Rent A Furnished Apartment? <\/strong><\/h3>\n\n\n\n

1. Higher rental income<\/strong><\/h4>\n\n\n\n

Without doubt, investing in furnished apartments for rent will allow the buyer to increase the rental price which means more rental income. The main benefit of furnishing your investment property can provide additional returns above the standard rent on a property. An apartment that would typically be rented out at Kes 20,000 unfurnished can be rented out at a few thousand shillings more if it is furnished.<\/p>\n\n\n\n

2. More short-term tenants<\/strong><\/h4>\n\n\n\n

The most suitable tenants for furnished apartments for rent would be those looking for something short-term, including tourists, young professionals, and small families. For example, if a couple decided to move to Kenya for one year, they would specifically look for a furnished property. Buying a whole set of furniture for a one-year stay would not seem like such a good idea in this case.<\/p>\n\n\n\n

Owning furnished apartments for rent in the appropriate location would mean a very desirable investment. If you are looking to rent out an unfurnished property with no amenities near a prime destination such as Kilimani, you are looking at fewer tenants than you would versus if you rented out a furnished property.<\/p>\n\n\n\n

Related: Furnished or Unfurnished Apartments: Which one is for you?<\/a><\/p>\n\n\n\n

Why Not A Furnished Apartment<\/strong><\/h3>\n\n\n\n

1. Dealing with more tenants<\/strong><\/h4>\n\n\n\n

Typically, tenants of furnished rental properties mean your market may be limited. You won\u2019t have the flexibility of long-term rentals. <\/p>\n\n\n\n

Renting a furnished property also means expecting to have many tenants. More tenants mean more short-term lease agreements, which means dealing with a lot more people. <\/p>\n\n\n\n

The more tenants you have, the more problems you may face. In addition, naturally, the more people who use the furniture, the more wear and tear on the furnishing in the apartment.<\/p>\n\n\n\n

2. Cost of buying and maintaining the furniture<\/strong><\/h4>\n\n\n\n

Purchasing durable\u00a0furniture\u00a0is not cheap. You will need to pay up the money needed for basic furniture. Although buyers will receive additional returns on their property, managing\u00a0furnished apartments for rent\u00a0can be a hassle. You must remember that furniture can get ruined ( eventually will get ruined) and that it must be maintained often. <\/p>\n\n\n\n

Considering the high number of renters you may be getting, cleaning and replacing of the furniture will need to be done on a regular basis. Yes, you are getting additional returns on your property, but now those returns must go towards maintaining the furniture in your property.<\/p>\n\n\n\n

3. Personal taste<\/strong><\/h4>\n\n\n\n

In addition, you have to take into consideration that\u00a0tenants\u00a0won\u2019t always have the same taste as you. Some renters won\u2019t appreciate your love of the arts or your love of colours the way you do. <\/p>\n\n\n\n

Sometimes, it may be easier and less costly to let them choose their own furnishings. When you invest in an unfurnished rental property, you do not need to worry about replacing or maintaining furniture. The tenant is free to bring their own furniture, and in turn, they will be responsible for their belongings.<\/p>\n\n\n\n

However, \u00a0you should keep in mind that allowing tenants to bring in their own furniture has its disadvantages. For example,\u00a0tenants\u00a0will be moving their furniture into the property. This can scratch up the walls and ruin the paint. Moreover, tenants may be more inclined to decorate the property, by making holes in\u00a0the walls to hang up pictures.<\/p>\n\n\n\n

Ultimately, as a\u00a0real estate investor<\/a>, you have to decide whether to go for\u00a0furnished apartments for rent\u00a0or unfurnished apartments. Although there are some disadvantages to investing in a\u00a0furnished apartment for rent,\u00a0 there are many more advantages. <\/p>\n\n\n\n

Studying the location of your future investment property is a must. If you do decide to furnish your property, try to choose neutral furniture and basic amenities that can help provide additional value to your rental property instead of appearing as annoying to future tenants. <\/p>\n","protected":false},"excerpt":{"rendered":"

There are many things to consider when investing in real estate property. Aside from the location, home inspections, and the closing costs, one very important factor to take into account when investing in a real estate property is if the apartment is furnished or unfurnished. Whether you decide to go for furnished apartments for rent versus unfurnished apartments can make a […]<\/p>\n","protected":false},"author":1,"featured_media":9141,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"amp_status":"","footnotes":""},"categories":[66],"tags":[],"class_list":{"0":"post-9125","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-renting"},"yoast_head":"\nIs a Furnished Apartment Good Real Estate Investment? - Kenya Homes<\/title>\n<meta name=\"description\" content=\"Owning furnished apartments for rent in the appropriate location would mean a very desirable investment. 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