To furnish or not? maximizing rental income: furnished vs unfurnished

To Furnish or Not to Furnish? A Landlord's Dilemma: Furnished vs. Unfurnished Apartments for Rent

Information for landlords

"To furnish or not to furnish when renting out an apartment?" - A challenging question many landlords struggle with. This article will help you untangle the complexities and make the most informed decision!

Table of Contents

1. Pros and Cons of a Furnished Apartment
2. Pros and Cons of an Unfurnished Apartment
3. Target Tenant Profile and its Influence on the Decision
4. Market Factors and Apartment Location
5. Investment Costs and Profit Potential
6. Apartment Management and Maintenance
7. Advice from Real Estate Experts
8. Success Story: Real-world Experience from a Landlord
9. 456.com.vn - Your Reliable Partner for Apartment Rentals
10. Customer Reviews
11. Reference Information - Contact Professional Units for Assistance with Real-world Scenarios
  1. Pros and Cons of a Furnished Apartment

A furnished apartment is one that is equipped with everything needed for daily living, from beds, wardrobes, tables and chairs, sofas, TVs, refrigerators, and washing machines, to kitchen utensils such as dishes, chopsticks, pots, and pans.

Pros:

Attracts Tenants Quickly: Tenants, especially expats, newcomers to the city, or those who don't want to spend time and effort buying furniture, often prefer furnished apartments. For example, according to a survey by 456.com.vn, furnished apartments are often rented out 30% faster than unfurnished ones.

Higher Rental Price: Due to being fully equipped, furnished apartments can be rented out at a higher price than unfurnished ones. The difference can range from 10-30%, depending on the quality of the furniture and the location of the apartment.

Saves Time and Effort for Tenants: Tenants only need to bring their suitcases and move in, without worrying about shopping for, transporting, and installing furniture.

Increases Competitiveness: In an increasingly competitive apartment rental market, furnished apartments have an advantage over unfurnished ones.

Cons:

Large Initial Investment: Furnishing an apartment requires a significant initial investment. Landlords need to carefully consider their budget and choose suitable furniture.

Risk of Damage and Loss: Furniture can be damaged during use or stolen. Landlords need to have appropriate maintenance and insurance measures in place.

Difficult to Meet Individual Tenant Preferences: Some tenants may not like the style or color scheme of the apartment's furniture.

Difficult to Change Design: When wanting to change the design or upgrade the furniture, landlords will face more difficulties compared to unfurnished apartments.

2. Pros and Cons of an Unfurnished Apartment

An unfurnished apartment is one that only has basic equipment such as the electricity and water system, a bathroom, and often a kitchen cabinet.

Pros:

Low Initial Investment: Landlords do not need to spend money on buying furniture.

Less Risk of Damage and Loss: Since there is no furniture, landlords have less to worry about in terms of maintenance and insurance.

Flexibility in Changing Design: Landlords can easily change the design or upgrade the apartment when needed.

Suitable for Tenants with Existing Furniture: Some tenants already have their own furniture and do not want to use the landlord's furniture.

Cons:

Difficult to Attract Tenants: Tenants are often reluctant to rent unfurnished apartments because they have to buy and install their own furniture.

Lower Rental Price: Unfurnished apartments usually have lower rental prices compared to furnished apartments.

Longer Rental Time: Unfurnished apartments may take longer to find suitable tenants.

Reduced Competitiveness: In the apartment rental market, unfurnished apartments have less of a competitive advantage compared to furnished apartments.

3. Target Tenant Profile and its Influence on the Decision

The target tenant profile plays an important role in deciding whether to rent out a furnished or unfurnished apartment.

Expats: Often prefer furnished apartments because they do not want to spend time and effort buying furniture when they first arrive in Vietnam. According to 456.com.vn's experience, foreign experts from Europe, America, Japan, and Korea often look for comfortable, fully furnished apartments to ensure a comfortable life.

Young Singles or Couples: Often tend to prefer furnished apartments with modern and convenient designs.

Young Families: May prefer furnished or unfurnished apartments depending on their financial situation and personal preferences.

Students and Young Professionals: Often look for cheap apartments, which may be unfurnished or basically furnished.

4. Market Factors and Apartment Location

Market factors and apartment location also influence the decision of whether to rent out a furnished or unfurnished apartment.

Central Areas, Near Industrial Parks, Schools: Furnished apartments are often more popular because there are many foreigners, workers, and students who need to rent. For example, in areas such as District 1, District 2 (Thao Dien, Thu Thiem), District 7 (Phu My Hung), furnished apartments have a higher occupancy rate.

Suburban Areas, Far from the Center: Unfurnished apartments may be more suitable because the rent is cheaper and tenants can furnish the apartment according to their preferences.

5. Investment Costs and Profit Potential

Before deciding whether to rent out a furnished or unfurnished apartment, landlords need to carefully calculate the investment costs and profit potential.

Investment Costs: Include the cost of buying furniture, the cost of maintenance, and insurance.

Profit Potential: Includes the rental price, occupancy rate, and management costs.

Example:

1. Furnished Apartment: High initial investment (e.g., VND 200 million), high rental price (e.g., VND 15 million/month), high occupancy rate (e.g., 90%), faster payback period.

2. Unfurnished Apartment: Low initial investment, lower rental price (e.g., VND 10 million/month), lower occupancy rate (e.g., 70%), slower payback period.

6. Apartment Management and Maintenance

Apartment management and maintenance is also an important factor to consider.

Furnished Apartment: Requires landlords to manage and maintain the furniture regularly, repair damages, and replace old items.

Unfurnished Apartment: Simpler to manage and maintain.

7. Advice from Real Estate Experts

According to real estate experts from 456.com.vn, the decision of whether to rent out a furnished or unfurnished apartment depends on many factors. Landlords need to carefully consider the above factors to make the most appropriate decision for their financial situation and goals.

Specific Advice:

If you have enough budget and want to attract tenants quickly, furnish the apartment fully.

If you want to save on initial investment costs and don't mind taking time to find tenants, rent out an unfurnished apartment.

If you rent out a furnished apartment, choose quality, durable furniture that matches the style of the apartment.

If you rent out an unfurnished apartment, make sure the apartment is clean, airy, and has all the basic equipment.

Contact reputable units such as 456.com.vn for advice and support in the apartment rental process.

8. Success Story: Real-world Experience from a Landlord

Mr. Minh, a landlord with an apartment at Vinhomes Central Park, shared: "Initially, I intended to rent out the apartment unfurnished because I wanted to save costs. However, after being advised by 456.com.vn, I decided to invest in fully furnishing the apartment. As a result, my apartment was rented out very quickly and at a higher price than expected. I am very satisfied with my decision."

9. 456.com.vn - Your Reliable Partner for Apartment Rentals

At 456.com.vn, we provide comprehensive support services for tenants and landlords:

1. Consulting on choosing apartments according to needs, budget, location, and lifestyle.

2. Legal support – bilingual contracts (Vietnamese – English, Korean... if needed).

3. Free apartment pickup – viewing – handover, including outside office hours.

4. Guidance on temporary residence registration, procedures for foreigners.

5. Assistance in contacting the management board, registering for resident cards, internet, and utility services.

6. Supporting tenants throughout their stay, responding quickly to support requests.

7. Rental apartment management for landlords: inspection, reporting, periodic maintenance.

We have over 13 years of experience in providing legal support and consulting on finding apartments in Districts 1, 2, 4, 7, Binh Thanh, Thu Duc areas of Thao Dien, Thu Thiem, Phu My Hung... : 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 Avenu , New City Thu Thiem, Feliz En Vista , Palm Height , Millenium , Goldview , Icon 56 , Saigon Royal , Sunrise City , Saigon Pearl, The Manor, City Garden, Pearl Plaza...

10. Customer Reviews

"I am a foreigner and have just come to Vietnam to work. Thanks to the support of 456.com.vn, I found a very beautiful and comfortable furnished apartment in Thao Dien. The service of 456.com.vn is very professional and dedicated. I am very satisfied!" - John Smith, British engineer.

11. Reference Information - Contact Professional Units for Assistance with Real-world Scenarios

This article is for reference only. To make the most accurate decision, you should contact professional units such as 456.com.vn for specific advice and support based on your actual situation.

Need more information or expert advice?

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