Furnished vs Unfurnished apartments: which is better for rent in HCMC?

Furnished vs. Unfurnished Apartments: Which is Easier to Rent in Ho Chi Minh City?

Information for Tips for Landlords & Property Owners and Expat Housing Tips

"To furnish or not to furnish? This is the question that plagues many apartment owners in Ho Chi Minh City looking to rent out their properties. Fear not, this article will dissect this issue from A to Z, helping you make the most informed decision!"

Table of Contents

1. Overview of the Ho Chi Minh City Apartment Rental Market
2. Pros and Cons of Furnished Apartments
3. Pros and Cons of Unfurnished Apartments
4. Analyzing Target Tenant Profiles
5. Factors Influencing Rental Prices
6. Real-life Case Studies: Landlord and Tenant Experiences
7. Expert Advice on Apartment Rentals
8. Conclusion: What's the Final Decision?
  1. Overview of the Ho Chi Minh City Apartment Rental Market

The apartment rental market in Ho Chi Minh City is always bustling, especially in central districts like District 1, District 2, District 4, District 7, Binh Thanh, and Thu Duc. Demand for apartment rentals comes from various groups:

1. Single Vietnamese individuals or young families starting their careers.

2. Expatriates working in Ho Chi Minh City (from Europe, the US, the UK, France, Germany, Korea, Japan, etc.).

3. Students from major universities.

The supply of apartments for rent is also diverse, ranging from budget-friendly apartments to high-end apartments, villas, and penthouses in well-known projects such as Vinhomes Central Park, Vinhomes Golden River, Grand Marina, Sunwal Pearl, Masteri Thao Dien, Lumiere Thao Dien, Estella Height, The Vista, Thao Dien Green, Thao Dien Pearl, The River Thu Thiem, Metropole Thu Thiem, Sala, The Sun Avenue, New City Thu Thiem, Feliz En Vista, Palm Heights, Millennium, Goldview, Icon 56, Saigon Royal, Sunrise City, Saigon Pearl, The Manor, City Garden, and Pearl Plaza.

According to the Q1 2024 real estate market report, apartment rental prices in Ho Chi Minh City are trending slightly upwards compared to the previous year, especially for apartments with prime locations, full amenities, and good management. (Reference: Reports from Savills or CBRE - specific data needs to be researched).

2. Pros and Cons of Furnished Apartments

Pros:

1. Easier to Attract Tenants: Tenants, especially expats or those new to the city, often prefer furnished apartments to save time and effort.

2. Higher Rental Prices: Fully furnished apartments typically command higher rental prices compared to unfurnished ones, increasing landlord profits.

3. Increased Competitiveness: In a market with many apartments for rent, furnished apartments have a competitive edge.

4. Suitable for Short-Term Tenants: Short-term tenants often look for apartments with full amenities and furniture for immediate occupancy.

Cons:

1. High Initial Investment Costs: Furnishing an apartment requires a significant upfront investment.

2. Difficult to Meet All Tenant Preferences: Everyone has different tastes, and furnishing according to a specific style may not suit some tenants.

3. Risk of Damage and Wear & Tear: Furniture can be damaged or worn out during use, requiring landlords to incur maintenance and repair costs.

4. Difficulty in Changing Styles: If you want to change the interior style to attract a new target tenant, the landlord will have to spend more money and effort.

3. Pros and Cons of Unfurnished Apartments

Pros:

1. Low Initial Investment Costs: Landlords don't need to spend money on furniture, reducing initial financial pressure.

2. Flexibility in Renting: Tenants can freely decorate and arrange furniture according to their personal preferences.

3. Less Risk of Damage and Wear & Tear: Landlords don't have to worry about furniture being damaged or worn out.

4. Suitable for Long-Term Tenants: Long-term tenants often want to furnish their own apartments to create a living space to their liking.

Cons:

1. Harder to Attract Tenants: Unfurnished apartments are often harder to attract tenants than furnished apartments, especially expats or those new to the city.

2. Lower Rental Prices: Unfurnished apartments typically command lower rental prices compared to furnished ones, affecting landlord profits.

3. Longer Rental Time: Finding tenants for an unfurnished apartment can take longer.

4. Analyzing Target Tenant Profiles

To make the right decision, landlords need to clearly identify their target tenant profile:

1. Expatriates: Usually prefer fully furnished apartments, high-end amenities, central locations, close to amenities such as restaurants, supermarkets, and international schools.

2. Single Vietnamese Individuals or Young Families: May choose basic furnished apartments or unfurnished apartments depending on their budget and preferences.

3. Students: Usually look for cheap apartments near schools, suitable for sharing.

For example, if your apartment is in Thao Dien (District 2) - a popular area for expats, investing in high-end furniture will be a major advantage in attracting tenants. Conversely, if the apartment is located near universities, renting an unfurnished apartment may be more appropriate.

5. Factors Influencing Rental Prices

Besides whether or not it's furnished, apartment rental prices also depend on many other factors:

1. Location: Apartments in central locations, with convenient transportation and close to amenities, usually command higher prices.

2. Area: Larger apartments usually command higher prices.

3. Amenities: Apartments with amenities such as swimming pools, gyms, children's playgrounds, and 24/7 security usually command higher prices.

4. Furniture Quality: High-end, modern furniture will help increase rental prices.

5. Apartment Condition: New, clean, well-maintained apartments usually command higher prices.

6. Reputation of the Developer and Management Unit: Projects managed by reputable units often have higher rental prices.

6. Real-life Case Studies: Landlord and Tenant Experiences

Landlord (Mr. Hung, District 7): "I have a 2-bedroom apartment in Sunrise City. Initially, I rented it out unfurnished, but then found it very difficult to find tenants. I decided to invest in some basic furniture, and then easily rented it out at a price about 2 million VND/month higher."

Tenant (Ms. Linh, Korean): "I just came to Ho Chi Minh City to work and don't have much time to shop for furniture. I prefer to rent an apartment that already has furniture, although the price is a bit higher, but in return I save a lot of time and effort."

Story from 456 Vietnam: "We once assisted a landlord with an apartment in Vinhomes Central Park for rent. Initially, the landlord wanted to rent it out unfurnished at a fairly high price. However, after our consultation, the landlord invested in some basic furniture and lowered the rental price slightly. As a result, the apartment was rented out quickly and the landlord still made a good profit."

7. Expert Advice on Apartment Rentals

According to the experience of 456 Vietnam, the decision to rent a furnished or unfurnished apartment depends on many factors. However, there is some general advice as follows:

1. Thorough Market Research: Understand the needs of tenants in your area.

2. Identify Target Tenant Profile: This will help you decide how to invest in furniture.

3. Calculate Investment Costs and Profits: Make sure that investing in furniture will generate higher profits than renting out the unfurnished apartment.

4. Choose Suitable Furniture: Choose furniture that is of good quality, modern design, easy to maintain, and matches the style of the apartment.

5. Cooperate with a Reputable Rental Unit: Units like 456 Vietnam have experience and a wide customer network, helping you find tenants quickly and effectively.

8. What's the Final Decision?

There is no absolute answer to the question "Which is easier to rent, a furnished or unfurnished apartment?". The final decision depends on the specific situation of each apartment, the target tenant profile, and the landlord's financial capabilities.

However, if you have the financial ability and want to maximize profits, investing in furniture is a worthwhile option to consider. Conversely, if you want to minimize risk and have plenty of time to find tenants, renting out an unfurnished apartment is also a viable option.

Whichever option you choose, always ensure that your apartment is well-maintained, clean, and has a reasonable rental price to attract potential tenants.

Reference Information - contact a professional unit for support in real cases.

Customer Review (Mr. Minh, after using 456 Vietnam's service): "I am very satisfied with 456 Vietnam's service. You helped me find tenants quickly and supported me throughout the rental process. In particular, you also advised me on legal procedures related to renting apartments to foreigners."

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