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Letting A Furnished Unit

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  • Letting A Furnished Unit

    I would appreciate PTers' experience and advice. I signed up for a 2-bedroom unit off the plans in 2006- that's the bad news. The good news is that it is now finished and title in 3 weeks.The bad news is it hasn't sold.The good news is the 2 bedroom unit is adjacent to the golf course and beach, so is a desirable location.
    Old story - purchase in haste and repent in leisure. I bought it for a place to move my mum, but the situation has changed over this time. Therefore, even though it is not an economic rental proposition, it will now be my second rental property and I will just have to carry the losses.

    My son and daughter-in-law are moving to Singapore and so I am now storing their furniture in my garage.I am hoping to furnish the unit with their furniture.
    Question: What is needed in furnished rental? What furniture? What electrical items? No doubt the insurance will also need to be different.
    Sorry, I couldn't find this information in the threads.

    Last edited by angel; 06-10-2008, 01:14 PM. Reason: name missing

  • #2
    Originally posted by angel View Post
    My son and daughter-in-law are moving to Singapore and so I am now storing their furniture in my garage.I am hoping to furnish the unit with their furniture.
    Do you son & daughter-in-law know about this? Are they happy with strangers potentially wrecking their stuff?? Don't forget tenants do not respect a $5K lounge suite any more than a $200 lounge suite from the Salvation Army shop. What happens if the tenants "do a runner" with the furniture?

    Question: What is needed in furnished rental? What furniture? What electrical items?
    You can provide everything aka a bed and breakfast situation, to just the bare necessities - lounge suite, dining room suite, tv, microwave, oven, fridge or anything or nothing in between.

    No doubt the insurance will also need to be different.
    Absolutely and some insurers won't touch furnished dwellings.
    Patience is a virtue.


    • #3
      In order of priority:
      Washing machine
      Lounge suite
      Dining Suite
      Bedroom furniture
      Other stuff
      two ears and just one mouth.. for good reason.


      • #4
        In the UK, I was in a fully furnished that had everything except linen, TV and Stereo, though we did buy an dinner table which the LL bought of us when we left (at full value! - lovely LL).

        Most apartments come with full whiteware.

        So anywhere those two to be negotiated with the tenant.


        • #5
          Tread just a little cautiously

          I have extensive experience with letting furnished. Furnished right down to the knives and forks.

          But before I start - with flats where the t/o of tenants is higher - I wished we had insisted on having our own whiteware in there. Much of the damage that gets done is when people move in and out and the whiteware being dragged across lino is not good !

          My experience of fully furnished was a) a lot of work endless letting and reletting and fixing / adding up chattels b) higher turnover of tenants c) much better tenants IF THEY WERE OUT OF TOWNERS d) it was generally an awful experience when letting to locals.

          I take the view that if people own nothing then they have nothing much to lose. And you have to ask why they don't own anything.

          If the people were from out of town, were in the process of moving away, building a house, had family in hospital or holidaying (etc) then these are perfectly valid reasons for wanting fully furnished. Every one of these people proved to be great tenants. Well worth the extra effort of checking all those glasses, making up beds etc.

          Our experience with people who lived locally but owned nothing was usually troublesome. In fact I am struggling to think of one time when it was a good experience. I remember rent arrears and heaps of stuff going missing.

          After having several properties fully furnished over about a 2 year window I gave it away because of the extra work. I think financially it was probably about even (compared to unfurnished) because the occupancy was lower and having to be out there buying extra tea towels, linen, missing glassware, delivering keys, inspections etc chewed up the time and dosh.

          We certainly met some amazing people and in all it was quite a fun period once we stuck to our letting "rules".


          • #6
            Thank you for your thoughts,everyone. Pixie, what "rules" did you have for furnished let, that were different from unfurnished let?


            • #7
              My Letting Rules On Furnished

              My rules on letting furnished property were all of the usual ones you expect as for an unfurnished place (eg. credit check) however we added in:
              - Minimum term for furnished was 3 months (otherwise you got people who rented your place whilst they found something more permanent)
              Note: holiday rentals are quite good and you might find that someone locally is a booking agent. If so then you just need to make sure your rental is suitable for few weeks / days they might stay.
              - Being super careful about who the people were (especially if they were semi-transient) and how to spell their name and how their nz contacts were etc. I asked myself if they were "real" or a story.
              - Full 4 week bond
              - Statement as to what the cleaning cost would be if it wasn't done when they vacated
              - If we let to a local then there had to be some sort of validation of them and a guarantee - for example a church group put recent immigrants into a couple we had plus a distressed father/daughter into another so the church guaranteed the rents/people. 100% awesome.
              - No one under mid-twenties. Never again. Not ever. <wow that is a large chip on my shoulders LOL>

              Generally we stuck to the "tell us about yourself and why a fully furnished place is suitable". The good people stand out a mile. Also, once you start gently and politely saying what your requirements are to an incoming tenant the dodgy ones melt away.

              I also went to a lot of trouble to make people welcome and gave them maps and local area info. Probably a bit OTT but it made people feel good and these tenants were very loyal / caring of us and the property.


              • #8
                I tried to put a smile on there but I appear to have put in a frown. Whoops - sorry.


                • #9
                  many thanks