The real estate market offers a wide range of rental properties: studios, apartments, houses, etc. Tenants have the alternative between renting the property empty or furnished. Each option has its advantages and disadvantages. What type of rental do you choose: empty rent or furnished rental?
Empty rental or furnished rental
It is available to the tenant without furniture or equipment. The latter must bring what he needs in everyday life. The furnished houses, in addition to having the kitchen and bathroom facilities, are equipped with furniture such as a bed, sofa, table, chairs and other usual accessories in a house.
How to decide? Both options offer their advantages and disadvantages.
The choice must be made according to several criteria, including the profile and needs of the tenant, ease of management of the lease, rental performance for the owner, among others.
When renting a furnished house, it is convenient to make a complete inventory with all the equipment of the house. This list will serve as a guarantee in case of damage, theft or damage.
The advantages of renting with furniture
- More profitability
In theory, renting a fully furnished office space in India should be more profitable than renting it empty, mainly because you can ask for a higher rental price when the house is fully equipped. The increase in rent multiplied by the useful life of the furniture must be greater than the cost of the furniture so that this type of rent is actually more profitable.
- Combining long-term rental with temporary rental
It can be rented either for long-term or for short stays. You can even combine both options, especially in tourist cities. As the rents are very high in summer, you can get a great return on housing. Do not forget the extra work of cleaning and reception of each guest.
- A more attractive type of housing for certain tenants
Certain groups of tenants seek to rent a furnished home because they need flexibility, speed and seek to avoid equipping it with furniture. This would be the best option for groups such as teachers, students or employees who will reside on the site temporarily. These categories generally present a lower delinquency risk.
Advantages and disadvantages of renting empty (without furniture)
- Longer rentals
Here people carry their own furniture or invest in a new one. For this reason, tenants are usually staying longer.
- Less discomfort
Having no furniture there are fewer incidents and less risk of destruction. As rentals are longer, the search for a new tenant is less frequent. All this implies less inconvenience for the owner.
- Less risk of housing “professional defaulters”
There are people who look for fully furnished office space in Gurgaon because they do not have money to buy furniture or a lot of income, this may present a higher risk of delinquency. There are even: the “professional” defaulters, who take advantage of the slowness of the judicial system to stay in other people’s houses without paying. Renting without furniture can be a way to avoid this group, which does not usually bother to buy their own furniture.
- Less profitability and less ease to rent
Renting an empty house implies a lower profitability for the owner. It is also more difficult to rent a house without furniture because many tenants stop when they think about what they will have to invest in equipping the house.